Switzerland vs Vanuatu
Crypto regulation comparison
Switzerland
Vanuatu
Switzerland is one of the world's most crypto-friendly jurisdictions. The Canton of Zug is known as 'Crypto Valley' and hosts the Ethereum Foundation and hundreds of blockchain companies. FINMA provides clear regulatory guidance, and the DLT Act (2021) created a legal framework for tokenized securities and crypto exchanges. Individual investors pay no capital gains tax on crypto, though it is included in the cantonal wealth tax base. Professional traders may be subject to income tax.
Vanuatu has become a popular jurisdiction for crypto businesses due to its tax-free environment. The VFSC has developed a regulatory framework for digital assets.
Key Points
- No capital gains tax on crypto for individual investors (private wealth management)
- Crypto included in cantonal wealth tax base (rates vary by canton, typically 0.1-1%)
- Professional/frequent traders may be classified as self-employed and taxed on income
- FINMA regulates crypto under existing financial market laws and the 2021 DLT Act
- DLT Act (2021) introduced DLT trading facility license and legal framework for tokenized assets
Key Points
- VFSC regulates digital asset businesses
- No income, corporate, or capital gains tax
- Popular jurisdiction for crypto business registration
- Citizenship by investment program exists
- Developing digital asset regulatory framework