The Swiss government wants to adapt the blockchainBlockchain
is a continuous and sequential block chain of information (digital linked list). When building a blockchain, copies of related blocks are simultaneously stored on multiple computers.Details technology (cryptocurrency) sector to already existing financial laws, as reported by the CoinDesk news agency.
On Friday, December 14, the Federal Council of the country published a report that presented the legal basis for the technology of the distributed ledger (DLT) or blockchain. The report states that the existing financial laws and regulations of Switzerland are well suited for working with such new technologies, but some amendments are still needed.
The first amendment proposed by the council is to the "Law on the Securities of the Country" in orderOrder
– automatic application to buy or sell cryptocurrency. Orders are used during trading on the stock exchange to open and close a position. Details to increase the legal "authenticity" of crypto-tokens.
"Since an entry in a decentralized registry accessible to interested parties may create publicity similar to the ownership of securities, it is considered justified to impart similar legal consequences to this entry." – The highest executive authority of the Swiss Confederation.
Legislation and regulation of blockchain, cryptocurrency
The board also wants to separate crypto-assets from the common property of insolvent debtors in bankruptcy proceedings. Nonetheless, since according to the country's "Debt Enforcement and Bankruptcy Act" (DEBA), it is not clear whether these assets can be recovered as a last resort.
As is known, the council stated that there is a "great need for legal certainty" for all parties involved in such matters. Therefore, it is proposed to make a corresponding amendment to the DEBA legal act.
In addition, the government agency proposed to create a new "authorization category" for infrastructure providers in the blockchain sector. It was also said about the introduction of relevant amendments to "The Swiss Financial Market Infrastructure Act".
As is known, the council has not yet proposed any specific changes. About the "Prevention of Money Laundering Act", representatives of the council stated that the legislation is currently adequate to cover also activities related to cryptocurrencies and initial coin offers (ICO).
"The general principles of the "Prevention of Money Laundering Act" also apply to cryptographic assets" – The highest executive authority of the Swiss Confederation.
Recall that the Swiss government has been working on the introduction of blockchain rules since 2016. Back in 2016, the Federal Ministry of Finance of the country announced its plans to regulate innovative financial technology.
Later, in early 2017, the council sought advice on changes in regulatory acts for the domestic financial industry in order to incorporate new financial technologies, including the blockchain and cryptocurrency. The Swiss government has announced its intention to adapt cryptocurrencies to the country's legislative norms not for the first time. Recall that such statements and reports on the territory of Switzerland are published with enviable regularity.
Editor: Pereyidenko Ihor