The Swiss government has proposed regulators to not make new legislations but rather make alterations to existing laws to adapt businesses from the blockchain and cryptocurrency area. The changes should concentrate on improving Switzerland’s standing as a blockchain-friendly nation, the Swiss Federal Council stated last week.
Switzerland’s Federal Council published on December 14 that a study on the legal framework for blockchain and distributed ledger technologies (DLT) from the fiscal industry. The report asserts that”Switzerland’s legal framework is currently acceptable for managing business models predicated on DLT and blockchain,” but several alterations have to be made.
The Federal Council stated it desired to exploit the opportunities made available by digitalization and blockchain, mentioning the possibility of innovation and improved efficiency in the financial industry and other industries of the market.
So as to do so it is focusing on producing”the best possible framework conditions to ensure Switzerland can set itself and evolve as a leading, innovative and sustainable place for fintech and blockchain businesses.” At exactly the exact same time, it mentioned that the importance of combatting abuses and ensuring that the integrity and great standing of Switzerland as a financial centre and company location.
Specifically, the Federal Council is proposing a change to fraud law. The projected legislative change would allow the”lawfully secure transfer of uncertificated securities by way of entries in decentralized registers.” The change will be made as technology-neutral as you can.
In financial market infrastructure legislation, it’s proposing the introduction of a new empowerment class for infrastructure providers from the blockchain/DLT region. Relevant amendments to the Financial Market Infrastructure Act along with the new Financial Institutions Act must concentrate on”creating more flexibility to be able to better meet the demands of blockchain/DLT programs,” it stated.
Dr Mattia Rattaggi, seat of the regulatory and policy working group in the Crypto Valley Association (CVA), stated the report is”entirely in song with its wish to make the best possible framework conditions for’Crypto Nation Switzerland,’ while underlining the nation’s integrity and standing as a financial centre and company location.”
“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.”
Angel Versetti, co-founder and CEO of both Ambrosus, a blockchain and Internet-of-Things platform for pharmaceutical and food distribution chains, mentioned the value of not stifling innovation and decentralization with excessive regulations, red tape and bureaucracy,”since this will lessen the civic value proposition that blockchain provides”
He added that Switzerland should consider just regulating businesses which do business with retail clients and treat decentralized protocols as a frequent good.