Tether once planned to establish a legal entity in Switzerland, but it failed to materialize due to the global minimum tax regime.

Tether abandoned plans in 2024 to establish a legal entity in Switzerland, according to the Financial Times, with Lugano mayor Michele Foletti attributing the decision to Switzerland's implementation of the OECD-backed global minimum tax. Tether executives were reportedly unwilling to absorb the associated tax costs, though the stablecoin issuer still sells services through local technology consultancy UBQ Services, people familiar with the matter said. The retreat highlights how the global minimum tax regime can deter crypto firms from formalizing operations in high-tax jurisdictions even as they maintain a local presence. Watch whether Tether revisits a Swiss base as tax rules evolve, and whether other crypto issuers follow suit in choosing jurisdictions by tax treatment.