Swiss Authorities to Accommodate Blockchain Into Existing Financial Laws

In a continued effort to facilitate the legalization of cryptocurrency assets on the market, Switzerland is making changes to its financial laws. A statement was released on Friday, December 14th, by the Federal Council, in which it was said that the country’s current rules are suitable for the regulation of cryptocurrencies, but specific updates must be made. Also, a legal framework for DLT was provided.

These are the latest in a series of steps the Swiss government has taken since 2016 to accommodate and regulate fintech. Starting with consultations on regulatory changes in 2017 and introducing the FinTech certificate in late 2018, Switzerland is even close to providing the best and most inclusive legal framework.

The authorities, represented by the Council, would like to segregate the digital assets from insolvent debtors’ total estate in bankruptcy processes and while still, the laws don’t provide ultimate certainty, some changes in the Debt Enforcement and Bankruptcy Act (DEBA) are proposed. In regards to the matter, the Council said: “Since an entry in a decentralized register accessible to interested parties can create publicity similar to the ownership of a security, it seems justified to attach similar legal effects to this entry.”

The government has also taken into account Switzerland’s Anti-money laundering Act and ensures that currently, the Act provides the necessary framework to accommodate activities related to cryptocurrencies and ICOs. For the moment a general change is not needed.

Finally, a new category was proposed for the digital assets to be in – the ‘authorization category’ will be introduced for infrastructure providers in the blockchain field and the Financial Market Infrastructure Act will be amended accordingly. The statement doesn’t propose specific changes, because the current law regulations are clear enough.