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With the undeniable cases that surround blockchain technology, it is difficult for governments to ignore this power. For this reason, entities around the world are exploring different ways to regulate the blockchain for their own use.
More interesting, the Swiss government is deciding differently. Instead of building its laws around the blockchain, the country is choosing to adapt its previous laws to circumvent decentralized technology.
Approaching emerging technology
This news comes from a report issued by the Swiss Federal Council last Friday. Here, the group has provided legal guidelines that explain in detail how the financial frameworks already created can be applied to the use of blockchains.
Initially, the Swiss Council declared:
"Since the entries in the blockchain are accessible to anyone interested and can create advertisements similar to the ownership of security, it is justifiable that we have attached a similar legal effect to that."
Furthermore, the group is choosing to remove the cryptoassets from more traditional resources when it comes to bankruptcy. The previous rulings had no connection with digital resources and how they should be considered when it comes to debt, so it will be altered by "legal certainty" for all parties.
This, and it has been suggested that "infrastructure providers" should be placed under their own form of authorization regarding the use of blockchains. Furthermore, the Swiss Council also intends to adapt its law on financial market infrastructures (FMIA). While the desire is there, we are still not sure how securities and derivatives will change. They will release the specifications as decided.
When it comes to anti-money laundering, a frequent subject of blockchain technology, the Swiss Council states that all current financial laws already satisfy encryption cases:
"The common principle of our anti-money laundering law can also apply to cryptocurrencies and related assets.There is no need for a basic revision at this time."
These changes are one of the many introduced by the Swiss government. In 2016, the group began collaborating with the Federal Department of Finance to regulate the financial technology industry. Then, in 2017, he wanted to elaborate regulations regarding his financial sector in general. This was done, in part, to plan possible cryptocurrencies and blockchain regulations.
Read: Bitcoin and money laundering: complete guide to international regulations
Even more recent is a FinTech license introduced by the Financial Market Supervisory Authority (FINMA) in Switzerland. This has been put in place to promote blockchain and cryptocurrency in Switzerland and to encourage mainstream adoption. This is a move that the rest of the world should follow if we want to see the success of the industry.
One of many
In other news, the Securities and Futures Commission (SFC) in Hong Kong is trying to strengthen their regulations on the crypto trade, according to the Nikkei Asian Review. This is to encourage the widespread adoption of encryption by combating fraud, recycling and other common issues that investors face.
These new regulations will force investment firms to obtain a license if their portfolio manages at least 10% in cryptocurrencies. Furthermore, these groups can only sell encrypted products to professional investors. If exchanges want to launch new tokens, they can do so in a so-called "regulatory sandbox" before acquiring a license. This and companies can only present ICO for assets that have been around for over a year.
The SFC has decided to apply stricter regulations after challenging seven different cryptographic exchanges due to complaints from investors. There were charges of market manipulation, fraud and more. He also went after an ICO, Black Cell Technology, after accusations of "unauthorized promotional activities".
As more and more countries are approaching regulation, it is likely that we will see a broader adoption regarding cryptocurrencies and blockchain. At the moment it is too difficult to involve the non-enthusiastic and education supported by the government is a fantastic way to change it.
