Blockchain technology is known to be advantageous in many aspects of society. In recent times, different government and private institutions have explored the use of blockchain technology. Recently, the government of Switzerland made its intentions about exploring blockchain technology known. However, rather than creating a new set of laws to accommodate the industry, the government will simply be adjusting its laws to accommodate blockchain technology.
Switzerland To Accommodate Blockchain Technology In Its Already Existing Laws
On Friday, the Federal Council in Switzerland issued a report about providing a legal framework for blockchain technology. The reports states that the already existing financial rules in Switzerland will be applied to new technologies like blockchain. However, the report made it clear that some amendments will need to be done first before the blockchain technology can be adopted fully and governed by already existing financial laws.
First off, the council proposed that the country’s security laws be amended. This way, the legal certainty of cryptocurrencies will be solidified. The highest executive of the Swiss Confederation said:
“Since entries in the blockchain are accessible to anyone who is interested and can create publicity that is similar to ownership of security, it is justifiable that we have attached a legal effect that is similar to that.”
The council also decided to segregate cryptocurrencies from assets of insolvent debtors when dealing with bankruptcy proceedings. Because the Switzerland’s current bankruptcy and debt enforcement laws do not specifically state whether digital assets can be segregated or not, the council decided that there should be legal certainty for all the parties involved. This is why a corresponding change has been proposed in the DEBA act.
Also, the body proposed that there should be a new authorization category for providers of infrastructure within the blockchain industry. They also said that they would do what it takes to make the required amendments to the Financial Market Infrastructure Act in line with the new information. However, the council is yet to propose specific changes regarding the central definitions of the terms derivatives and securities within the market regulations. However, these terms are also relevant in the blockchain industry according to the council.
Anti-Money Laundering And Blockchain Technology
When discussing the country’s anti-money laundering laws, the council said that the current legislation is enough to cover all blockchain and cryptocurrency related activities. The executive continued:
“The common principle of our anti-money laundering act can also apply to cryptocurrencies and related assets. There is no need for a basic revision at this time.”
This isn’t the first move the government has made in the blockchain space. In 2016, the Switzerland government started working with its Federal department of Finance. At the time, it stated its plans to regulate the FinTech industry. In the year 2017, the council sort out consultations about regulatory changes for its financial industry. This was done in a bid to account for innovative fintech including blockchain technology.
Bitcoin (BTC) Price Today – BTC / USD
Recently, the FINMA, the Financial Markets Supervisory Authority in Switzerland introduced a fintech license that had liberal requirements that will be applicable to cryptocurrency and blockchain related firms. These are just a few moves that have been made to promote this emerging technology in Switzerland. If more countries take out time to explore this technology, the industry would reach mass adoption soon.