Other News from Switzerland:
- Switzerland: First Bitcoin-Cryptocurrency ETF with Ticker $HODL Approved
- Switzerland: Financial Services Firm Raises more than $100 Million to launch Crypto Bank
- Swiss Post and SwissCom have given Thumbs Up to a Blockchain Infrastructure
- Swiss startup introduces the world’s first blockchain-powered smartphone – Finney
The report shows that the main focus of the Swiss Federal Council is to ensure the integrity and reputations of Switzerland in the FinTech and blockchain sectors by exploiting the opportunities offered by digitalization.
The report also gives light to the negatives aspects and risks involved in using cryptocurrencies for illegal purposes, but it notes that the country’s laws should be revised in order to realize encrypted digital tokens. The Federal Council also mentioned that they would want the decentralized financial transactions to be a part of the legal code.
The report states a proposal to provide discretionary powers to the Swiss Financial Market Supervisory Authority (FINMA) to reduce the regulations affecting decentralized securities trading platforms without harming investors. A Swiss economist, Luzius Meisser stated:
“This shows once again how the traditional Swiss approach of having principle-based laws that give a lot of discretion to citizens and regulatory agencies are much more innovation-friendly than overly detailed European-style laws.”
The country will accomplish these goals without the creation of any new laws but adapting the current legislation to include new technological developments. Mattia Rattaggi, spokesman for regulatory matters at the Crypto Valley Association (CVA) stated:
“We feel that this approach best represents the principle of technological neutrality and is in line with the position taken by the CVA in the consultation process … Crucially, this approach ensures maximum consistency within the current legal framework while keeping it principle-based and flexible, while allowing changes to be adopted on a ‘need-to-regulate’ basis.”
The most important proposed changes from the report are:
- Amending the Collective Investment Schemes Act to include a new type of “limited qualified investment funds” with the intention of placing future innovative products on the market in a more time and cost-effective way.
- Start recognizing data as an asset by changing company bankruptcy laws. This would allow Swiss courts to handle and properly distribute digital assets when solving legal disputes.
- Widen the Anti-Money Laundering Act to include decentralized exchanges and allow law enforcement to dispose of third-party digital assets.
- Creating new authorization categories to give FINMA discretion to loosen regulations for decentralized securities traders and exchanges based in Switzerland.
- Amending the Financial Institutions Act and the Financial Market Infrastructure Law to make them more flexible towards blockchain initiatives.
Link to the original news article can be found here.