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Swiss blockchain regulations set for an overhaul

Swiss blockchain regulations set for an overhaul

The Swiss blockchain regulations are set for an overhaul as the Swiss federal government has submitted a revised plan regarding the same to the country’s parliament. The document aims to amend the current archaic laws related to blockchain and distributed ledger technology (DLT). These old rules have led to a stagnation in the blockchain innovation industry.

The Federal Council, during its meeting on 27th November 2019 has agreed to adopt a plan that proposes changes in the legislative framework related to blockchain technologies. In the words of the federal finance department of Switzerland, this plan will work towards eliminating the barriers for blockchain development, deliver legal certainty, and prevent the abuse of this technology.

In total, nine federal acts in financial and civil laws will be amended through this legislative process. It will act as a ‘blanket framework’ that will address the concerns of the crypto community regarding Swiss blockchain regulations.

Swiss blockchain regulations are archaic

Switzerland is one nation that loves crypto. It is known as a pro-blockchain country. There are numerous blockchain and crypto-related companies in its Zug region. Libra Association is registered in Switzerland. Despite this, its Swiss blockchain regulations are not progressive. However, things are about to change with this latest plan.

In 2018, a report was released by the Federal Council which stated that current financial laws would be used to regulate blockchain and crypto firms. Later, a fintech license was started by the ‘Financial Market Supervisory Authority’ that featured ‘relaxed’ requirements and was focused on blockchain and cryptocurrency firms.

The report also praised Switzerland’s current financial and legal framework as it was well suited to serve the industry’s requirements. However, it mentioned that there is ample room for improvement to incorporate new technologies like DLT. To bring about new changes, the Federal Council invited many amendment proposals in March. After receiving more than eighty responses, the new proposals have been added in the plan and adopted by the council.

The Swiss parliament will examine the proposed legislative changes in early 2020.

Image Source: Pixabay

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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