Swiss Federal Council to Update Blockchain Laws

Wilfred Michael 

Wilfred Michael

News reporter

23 March 2019,
20:07
Swiss Federal Council to Update Blockchain Laws

According to a press release published March 22, the Swiss Federal Council has started a consultation process that will lead up to the adaptation of some federal laws to the deployment of blockchain application.

The Council hopes that by updating existing blockchain regulations with some federal laws, they can increase legal certainty, remove the hurdles faced by developers and reduce risks of misuse.

Precisely, the consultation process will see the authorities review whether to:

  • Include in the Swiss Code of Obligations a rule that permits the creation of digital rights that can perform the functions of negotiable securities.

  • Include in the Federal Law on Debt Collection and Bankruptcy a rule that allows segregation of crypto-based assets if an individual or company becomes bankrupt.

  • Include in the financial market infrastructure law a new authorization category for so-called "DLT trading facilities." These facilities will provide institutional investors and private customers options to deal with DLT-based assets.

  • Include in the Financial Institution Act a rule that allows people to apply for a license to operate a securities firm.

The Federal Council’s consultation period will last until the end of June 2019 and should closely follow the introduction of the rules barring any negative development. As per the release, the rules will help “Switzerland establish itself and evolve as a leading, innovative and sustainable location for fintech and DLT companies.”

In recent times, Stmarket.co has reported other efforts to improve the Swiss crypto and blockchain ecosystem. Earlier this week, the Federal Assembly of Switzerland voted 99 to 83 votes in favor of a similar notion to apply existing regulations to the use of cryptocurrencies.

Among the regulations that could apply is that exchange operators will be in the same category as other financial intermediaries, thus, allowing the Swiss Financial Market Supervisory Authority (FINMA) to oversee their activities.

 

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