According to the recent announcement, Swiss Parliamentarians have amended several laws ranging from company bankruptcy to securities trading. Switzerland has amended its legal code in order to bring Blockchain and cryptocurrency mass adoption.
For welcoming cryptocurrencies and Blockchain technology into the mainstream, the government has passed a wide-ranging set of financial and corporate law reforms. The legislation would introduce the principle of decentralized finance(DeFi) and would facilitate the development of digital business shares and a number of other tradable digital assets.
New laws describe the legalities and rules for trading digital shares along with the legal mechanism of reclaiming bankrupt corporations’ crypto-assets. It also specifies the legal criteria for operating cryptocurrency trading transactions in such a way as to reduce the dangers of using cryptos to launder money.
The “Blockchain Act” comes after the members of the House of Representatives passed the act without opposition in summer 2020, which indicates that the law will be effective from next year.
Neighboring Liechtenstein has already enacted Blockchain legislation, but rather than amending the existing laws, it aims to create new laws.
Existing and New Companies Experimenting with Blockchain
The European nation has been a significant player in the banking and finance domain. At present, Switzerland has more than 900 Blockchain and cryptocurrency companies employing 4,7000 staff, which includes asset managers, real estate ventures, upcoming digital stock exchanges, and a variety of digital currency projects, such as Facebook’s Libra.
Heinz Tännler, President of the Swiss Blockchain Federation, mentioned that,
“As of next year, Switzerland will have a regulatory framework that is among the most advanced in the world.”
The Swiss government has also been active in adopting cryptocurrencies and Blockchain. As it has supported startups, along with existing and new companies, who were looking forward to experimenting with the technology, it continues to push Blockchain and cryptocurrency innovation.
Presently, many public and private sector companies in Switzerland are experimenting with Blockchain for bringing a revolutionary change in their business processes. Swiss banks are also considering implementing this technology to disrupt the finance ecosystem.
UBS and Credit Suisse are testing the trading potential of DLTs. Moreover, private banks such as Maerki Baumann and Arab Bank Switzerland have also started offering cryptocurrency services.
Last year, in 2019, the Swiss Financial Market Supervisory Authority (FINMA) reported that it had allowed banking dealer licenses to two Swiss cryptocurrency firms named as Seba Crypto AG and Sygnum, which became the first cryptocurrency banks ever.
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