The Foundation Model and Its Legal Questions — conclusion

Conclusion of Chapter III

The foundation became the typical legal form of the crypto projects of Zug because it had no owners and dedicated its assets to a purpose, a structure that matched the self-image of open protocols. The foundation brought public supervision, a stable legal framework and the reputation of Swiss institutions, although the Tezos affair revealed its rigidity when the board and the founders disagreed. The foundation form did not exempt the projects from financial market law, while its tax treatment followed the principles that the Federal Tax Administration set out in 2019. The decentralised autonomous organisation still has no place in Swiss law and relies on foundations or associations as legal wrappers. Competition from the Cayman Islands, Liechtenstein and Abu Dhabi has drawn newer projects away, while the best-known foundations have stayed in Zug.

Conclusion of Part G

Crypto Valley, the newest layer of Zug's economy, had its origins in the arrival of Bitcoin Suisse in 2013 and of the Ethereum Foundation in 2014. The town's acceptance of Bitcoin in 2016 and the Crypto Valley Association of 2017 gave it a name. It passed through the ICO boom of 2017, through FINMA's guidelines of 2018 and through two crypto winters. By 2025, the industry counted 719 blockchain companies in the canton. The cluster followed the canton's older model, which combined low taxes, pragmatic authorities, professional services and an English-speaking environment, extending that model to a new technology. Its characteristic legal vehicle was the Swiss foundation, whose strengths and limits this part has examined. Part H turns to the law that now governs crypto-assets and Digital Assets in Switzerland.

In five sentences

Crypto Valley was born in Zug between 2013 and 2017, with Bitcoin Suisse, the Ethereum Foundation, the town's acceptance of Bitcoin and the Crypto Valley Association. The ICO boom of 2017 brought large sums and many dubious projects before it ended in 2018 with falling prices and FINMA's guidelines on token classification. Regulation, crypto banks, the cantonal bank's crypto offering and the acceptance of crypto-assets for taxes marked the maturing of the industry after 2018. The Swiss foundation served as the typical vehicle for token projects, although its rigidity, its tax treatment and the lack of a legal form for decentralised autonomous organisations limited it. Zug remains the centre of the Swiss crypto industry, with about two fifths of its companies, but it faces growing competition from jurisdictions with purpose-built legal forms.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.

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The Foundation Model and Its Legal Questions — conclusion

Conclusion of Chapter III

Conclusion of Part G

In five sentences

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