The Swiss government is looking to relax crypto regulations further as an attempt to foster industry growth and encourage more startups to set up their establishments in this Alpine region, Coindesk revealed on July 1.
The National Council of Switzerland, which is the larger of the two Federal Assembly houses, has unanimously agreed on a bill that proposes changing a few crypto regulations to fit better the evolving times and needs and support crypto business growth in the region. With this, the Swiss regulatory officials are doing their best to minimize the legal hurdles and reiterate their position as a pro-crypto nation.
Switzerland’s long-known pro-crypto stance
Last month, cryptocurrency exchange Kraken made known its intentions to strengthen association with this thriving fintech hub of Europe and ascertained its vision to become an active part of the crypto adoption journey. The Bitcoin Association Switzerland, the largest crypto community in Switzerland, also registered itself successfully as a non-profit in May, becoming an exemplar of the country’s friendly crypto regulations.
Switzerland is also known for its long-standing association with blockchain technology, with the city of Zug, acting as a popular hot spot for launching token-based projects during the crypto boom of 2017. Although the concept of ICOs has gradually faded, the interest surrounding the technology is still very much intact.
Now, the authorities from the National Council and the Federal Council and working collaboratively to reconsider existing taxation barriers to the growth of the crypto industry and making it easier for new ventures to set up their bases. It is seen as a move to promote more comprehensive blockchain applications across all sectors.
Easing crypto regulations to accommodate more development
Rolf H. Weber, professor of financial market law and chair of the working group for regulatory issues at the Swiss Blockchain Federation, referred to the move as political propaganda to encourage the influx of blockchain and cryptocurrency-related businesses and projects.
If we go by the existing laws, the transfer of security tokens is a cumbersome task given the many regulatory compliance needs, much like in the case of a traditional exchange of bonds. However, with possible amendments in the future, the whole process will be much more straightforward and faster.
Investors holding security tokens will no longer have to undergo the complex process of registering themselves for transferring their assets. Moreover, blockchain and cryptocurrency service providers will be able to request and secure business operating licenses much faster and easier than before. Provisions will also be made for business owners to reclaim their losses in case of bankruptcies, he said.
Weber concludes that Switzerland does not consider the blockchain and crypto industry as separate entities but merely as an extension of the financial system.
Amendments to crypto regulations will not only ascertain their inclusivity but also make it easier for startups and large firms to operate and sustain themselves in changing business landscape.