Switzerland has emerged as one of the world’s most advantageous countries in terms of digital asset marketplaces. This is according to the Crypto Trading Report 2022 published by the auditing and consulting firm PwC and Finery Markets, which is the first global multi-dealer crypto platform. It is based in Cyprus. Of the 77 respondents in the fourth quarter of 2021, 25 percent were brokers, 22 percent were hedge funds and 12 percent were over-the-counter trading teams.
Legal framework is crucial
The country’s “robust legal framework conditions, which were introduced in a targeted manner to ensure a high degree of legal certainty for DLT-based business models” represent the decisive factor behind the good reputation of the Swiss marketplace for trading digital assets, comments Dr. Jean-Claude Spillmann, Director at PwC Legal Switzerland, in a press release.
Digital assets are widely used
According to the Crypto Trading Report 2022, 70 percent of the participants are already trading in digital assets. However, 60 percent said they would be keen to improve their current trading set-up. According to PwC, this indicates that the market is not yet mature. This is also reflected in fact that over 25 percent have more than ten trading partners, which suggests that the market is highly fragmented and in need of consolidation.
The report also highlights a trend of trading in crypto assets worth more than 10 million US dollars. Overall, 90 percent of the respondents trade on centralized exchanges (CEX), with around half using the over-the-counter market (OTC). Despite the regulatory uncertainty, 30 percent of respondents also trade on decentralized exchanges (DEX).
