Victor Ugochukwu · Dec 14, 2020 . 5min read
Switzerland Proposes New Bill to Enhance Blockchain and Crypto Industry
Switzerland’s Senate have passed a new bill to offer a clear legal framework regarding cryptocurrency trading and blockchain.
By Komal Joshi · Sep 11, 2020 . 5min read
On 10 September 2020, the Swiss parliament passed a law to update existing corporate and financial regulations to make way for blockchain and the cryptocurrency industry. According to a Swiss Info report, the “Blockchain Act” in Switzerland has been suitably amended by the country’s senate. However, the proposed legal reforms were agreed upon unanimously by the Swiss House of Representatives.
Blockchain Act will Function from Q1 2021
The blockchain act will provide a clear legal framework regarding cryptocurrency trading and how it relates to securities laws. Moreover, the new laws will offer Switzerland the most advanced blockchain regulatory framework in the world. According to the report, the reformed Blockchain Act has produced critical updates, varying from company bankruptcy to securities trading.
The legislation offers new standards for cryptocurrency exchanges in an attempt to target money laundering. Further, it also sketches more transparent laws about the recovery of stolen coins from bankrupt businesses. Additionally, it sets a firm legal foundation for the trading of only digital securities. From implications, the law should take effect in the first quarter of 2021.
According to the report, the new law will rekindle the highly blockchain and crypto cynical Switzerland banking sector into understanding the technology and its associated innovations in a new light. The failure to stand up for blockchain and cryptocurrencies can make present banks lose consumers to Sygnum and Seba Crypto AG. The two blockchain firms Sygnum and Seba Crypto AG were granted banking licenses by the country’s top banking regulator, The Financial Market Supervisory Authority (FINMA). It enables the banks to combine cryptocurrency into a broad range of services. Additionally, the services include deposits, withdrawals, lending, and investing.
Conclusively, Switzerland is a fast-growing hub for the world’s blockchain industry. The county recently houses approximately 900 blockchain companies with an expected total staff of about 4,700 as gleaned from the Swiss Info report. Moreover, these figures will rise when the new bill comes into full effect.
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