The Swiss Federal Council wishes to promote and legally secure blockchain technologies. Instead of a separate law – like Liechtenstein, Malta or Luxembourg – Switzerland wants to expand existing legislation. "The Swiss legal framework is already well adapted to new technologies, including DLT," announced on November 27.
The country wants to become a leading, innovative and sustainable site for FinTech and DLT companies – and already does. According to a study, 800 cryptographic companies are based in Switzerland, including more than 400 in the canton of Zug, tax-friendly, often called the "Crypto-Valley". It is also Switzerland that granted the banking license to the technology companies Sygnum and Seba Crypto in August 2019. As a result, Bitcoin wants to follow Switzerland and applied for the corresponding license in July 2019.
A blockchain law with more freedom
A year ago, the Federal Council published a report on the legal framework for block accounting and distributed accounting technologies in the financial sector. Adjustments in civil law and financial market law are expected to follow.
Tokenization of actions
The project introduces the legal status of a registry value right, thus providing a legal basis for the creation of symbols, such as stocks or bonds. As a result, the Swiss Federation of Chain Channels has stated that "Switzerland will thus have the most advanced private law framework in the world for chip-based business models".
Another legal clarification follows in the law of bankruptcy. The separation of encrypted assets could be attributed to the Community in the event of bankruptcy. "This fundamentally recognizes the possibility of a collective guard, long recognized in Swiss law," continues the Swiss blockchain Federation.
New trading platforms and FinTech licenses
In Financial Market Infrastructure Law, a new authorization category is being created for DLT platforms on which encrypted effects can be traded, stored and transferred.
The novelty of the draft is the extension of a FinTech license. The encrypted asset keepers are therefore subject to state supervision. Legislative amendments are expected to be discussed early in 2020, when Parliament will be dealing with the bill for the first time.