Switzerland Passes Laws Defining Blockchain and Cryptocurrency Industry

Cryptocurrencies stock

Switzerland’s parliament on Thursday 10 September passed amendments of a new finance and corporate law related to the blockchain and cryptocurrency industry.

Previously, the Swiss House of Representatives approved the Blockchain Act without any opposition in the summer of 2020. The law will come into effect in early 2021.

According to Swiss Info, this law will allow decentralised finance (DeFi) and the creation of digital company shares and other tradable assets.

The new set of laws outlined legislation ranging from company bankruptcy to securities trading. It also defined the legal requirements to operate cryptocurrency exchanges to mitigate the risk of money laundering using cryptocurrencies.

Currently, Switzerland contains about 900 blockchain companies, with a staff of around 4,700 employees.

“These include crypto banks, asset managers, real estate ventures, alpine cryptocurrency vaults, a variety of different blockchains, upcoming digital stock exchanges, and an array of digital currency projects, such as Libra,” Swiss Info clarified.

Many public and private sector companies in Switzerland are experimenting with this technology, besides the government trial to adapt the blockchain and cryptocurrency technology and industry, according to CoinTelegraph.

Banks

One of the threats that was facing the blockchain industry in Switzerland is money laundry. Banks were afraid of cryptocurrencies and blockchain. Hence, most startups were not able to have a bank account.

This came as a result of the fraud that happened to investors in 2017 and 2018. 

However, Sygnum and Seba Crypto AG became the first cryptocurrency banks in the country in 2019.

This took place after they received a Swiss banking license from the Swiss Financial Market Supervisory Authority.

Moreover, private banks such as Maerki Baumann and Arab Bank Switzerland provide cryptocurrency services to wealthy clients. They usually provide services through intermediates such as Bitcoin Suisse, Metaco, or Taurus.

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Hanan Hamed 48 Articles
a bilingual journalist. She writes in both Arabic and English. She has been writing news and features for 7 years now. She is specialized in business and economic news.