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First Step of Switzerland’s Blockchain Law Takes Effect

On Monday, the first part of the Swiss blockchain law, covering corporate reforms, went into effect. In September 2020, the country’s parliament adopted an expanded regulatory framework for crypto and blockchain technology in the country.

According to a Swissinfo report, implementation of the new regulatory framework; It will help beautify Switzerland’s burgeoning crypto and blockchain situation. Indeed, people within the chapter in the country praised the expanded financial and institutional reforms contained in the amended legislation passed by parliament in September 2020.

For Hans Kuhn, a board member of digital bank SEBA, blockchain law secures Switzerland’s place in the emerging digital economy. According to Kuhn, the regulated issuance of blockchain-based securities indicates the country’s focus on promoting digital innovation.

Back on Monday, crypto broker firm AG announced that it has obtained a license from the Swiss Financial Market Supervisory Authority (FINMA). Under the license, the brokerage firm, which handled over $1 billion in transactions last year, can now offer tokenized securities to its clients.

Crypto Broker AG joins SEBA and Sygnum Bank with FINMA license in further expansion of regulated crypto securities trading arena in Switzerland. In the second part of the Swiss blockchain law, which is expected to come into effect in the summer, companies will seek to create a valuable presence on the asset exchange for regulated trading of these crypto securities.

Switzerland joins other countries with blockchain clause

The second part of the Swiss blockchain law will cover significant upgrades to the country’s financial market infrastructure. This part of the blockchain law will provide the legal basis for trading crypto securities alongside other cryptocurrency exchange processes.

Switzerland now joins Liechtenstein as one of the few countries to pass full-fledged crypto and blockchain regulations that take into account all valuable aspects of the industry. However, contrary to the Swiss approach, which changed the existing clauses to fit the blockchain market, Liechtenstein created a new legal framework for the cryptocurrency and blockchain market.

Posted in Crypto World

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