According to reports from Swiss news service Handelszeitung, the Chinese bitcoin mining company Bitmain has created a subsidiary located in Zug, Switzerland. Due to the fact that a number of blockchain and cryptocurrency companies have established their HQ in the area, Zug has become known as the ‘Crypto Valley,’ thanks to its permissive regulatory environment.

It is believed the move is in response to reports that authorities in China want to crack down on – and tighten regulations regarding – bitcoin mining. It is believed that this will be achieved by closing tax loopholes, and controlling access to the utilities needed to supply power to bitcoin mining equipment. 

The report from Handelszeitung goes on to say that by opening an office in Zug, Bitmain is hoping to reach out beyond its home country and to increase its presence in the European cryptocurrency market. A representative from Bitmain said that the Swiss subsidiary would play a key role in the company\'s global expansion and growth.

The Bitmain rep went on to say that the company plans to increase its footprint in Zug over the coming weeks and months, by hiring new staff and reaching out to local government officials at the Swiss Financial Market Supervisory Authority (FINMA).