Bitmain is one of the biggest Bitcoin mining companies in China and the world. It already has branches in the United States, Israel, and Singapore. It is now expanding its presence to Europe, and it has designated Switzerland as its next global hub.
Switzerland is already home to several big names in the industry, but Bitmain’s entrance has made big news considering its position internationally. The plan is still in its early phases, but Bitmain’s co-founder and CEO has shared a lot of the crucial details.
Settling Into the World’s Crypto Valley
Bitmain has already identified where its offices in Switzerland will be located: where else but Zug, the world’s “crypto valley”?
Zug is home to the world-renowned and government-backed Crypto Valley. It is so popular with digital currencies that the authorities even allow residents to pay for municipal services using Bitcoin. It is already home to several of the biggest crypto companies in the world.
Asked why it chose to set up shop in Zug, Bitmain’s CEO and co-founder Jihan Wu said that Switzerland was one of the most progressive and politically stable countries in the world. Switzerland is also known for being the financial haven of the world – it is home to billion-dollar reserves and investments.
Bitmain is looking for more than just shelter. It plans to invest considerably in its new offices in Zug and work closely with the authorities. According to Jihan Wu, the branches there will hire employees from the city, save for the top officials. It also claims that it will cooperate closely with regulatory authorities such as Switzerland’s Financial Markets Supervisory Authority.
Trouble Brewing at Home
Some analysts allege that Bitmain is eyeing Zug because of the frustrations imposed by the Chinese government back home. It seems that China is moving to exert its control over the crypto industry and curb its growth.
The Chinese government have moved to scale down Bitcoin mining activities in the country through several policies. For instance, Bitcoin mining companies will no longer enjoy incentives such as cheap power tariffs and tax cuts. It is also expected to monitor these companies closely and pass more policies with time. Analysts are worried about what this spells for the future, as they consider this to be just the beginning of bigger things to come.
That said, Bitmain has been expanding internationally, and it is only logical that it would settle in Switzerland. The timing, however, couldn’t have been better.
Featured Image Credit: Quartz Media
Have you worked with Bitmain before? What do you think its latest move means for itself and its clients? Are you worried that its Chinese headquarters will take a back seat? Share your thoughts on any of these issues with us in the comments below.