The Swiss government has advised regulators not to create new legislations but instead make adjustments to existing laws to accommodate companies in the blockchain and cryptocurrency space. The amendments should focus on enhancing Switzerland’s position as a blockchain-friendly country, the Swiss Federal Council said last week.
Switzerland’s Federal Council released[1] on December 14 a report on the legal framework for blockchain and distributed ledger technology (DLT) in the financial sector. The report argues that “Switzerland’s legal framework is already suitable for dealing with business models based on DLT and blockchain,” but that several adjustments need to be made.
The Federal Council said it wished to exploit the opportunities offered by digitalization and blockchain, citing the potential for innovation and enhanced efficiency in the financial sector and other sectors of the economy.
In order to do so it’s working on creating “the best possible framework conditions so that Switzerland can establish itself and evolve as a leading, innovative and sustainable location for fintech and blockchain companies.” At the same time, it noted the importance of combatting abuses and ensuring the integrity and good reputation of Switzerland as a financial center and business location.
The Federal Council cited the need for an optimal framework conducive to innovation and new technologies, and the need to pursue a principle-based and technology-neutral legislative and regulatory approach.
In particular, the Federal Council is proposing an amendment to securities law. The planned legislative amendment would enable the “legally secure transfer of uncertificated securities by means of entries in decentralized registers.” The amendment would be designed as technology-neutral as possible.
In financial market infrastructure law, it is proposing the creation of a new authorization category for infrastructure providers in the blockchain/DLT area. Related amendments to the Financial Market Infrastructure Act and the
