Home News Blockchain Switzerland Set to Regulate Blockchain within Country’s Existing Financial Laws

Switzerland Set to Regulate Blockchain within Country’s Existing Financial Laws

The government will undertake few amendments in the existing financial laws to provide a boost to the emerging technology.

December 17, 2018 18:14
|
FILE PHOTO: A Swiss flag is pictured next to the Jet d'Eau (water fountain), and the Lake Leman from the St-Pierre Cathedrale in Geneva, Switzerland, June 5, 2012. REUTERS/Denis Balibouse
Share with your friends

The Swiss government has announced its plan to implement a blockchain strategy that aims to create a legal foundation for the new technology within the purview of existing laws.

On Friday, the country’s Federal Council issued a report in which it said that the country’s existing legal framework is very well suited to deal with such new technologies, but few amendments will be required.

As prescribed by the Federal Council, the first amendment will be done on the country’s securities law to improve the legal security of crypto tokens. The council explained: “Since an entry in a decentralised 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 council has also noted there needs an amendment in the country’s existing Debt Enforcement and Bankruptcy Act (DEBA) for a smooth bankruptcy proceeding. At present, it doesn’t have the mechanism to separate crypto assets from the insolvent debtor’s total estate and thus needs “great need for legal certainty” for the parties involved.

The government has also proposed a creation of new “authorization category” for the infrastructure providers in the blockchain sector and will also undertake amendments to its Financial Market Infrastructure Act accordingly. The council has also sought a clear definition of the terms “securities” and “derivatives” for further to regulate the crypto sector.

Regarding AML, the council feels that the current regulations are enough powerful to cover the activities related to cryptocurrencies and ICOs. It said, “the general principles of the Anti-Money Laundering Act also apply to crypto-based assets,” further adding that there is no need for a “fundamental revision”.

Join the Discussion on Telegram

LEAVE A REPLY

Please enter your comment!
Please enter your name here