Switzerland presents the legal structure for the Blockchain technology in collaboration with the Crypto Valley association
Switzerland once again proved to be one of the world's leading authorities in blockchain technology. Last week, Switzerland inaugurated a new legal framework for distributed ledger technology.
The regulations were unveiled at a Federal Council meeting on 7 December. The 162-page document covers the various impacts of blockchain technology and distributed ledger.
The report was prepared in consultation with internal and external stakeholders, including the Crypto Valley Association, which made contributions through its policy and regulatory working group.
The Crypto Valley Association is a non-profit association based in Switzerland that supports the development of technologies and activities related to blockchain and cryptography. The working group on the policy and regulation of the CVA is led by dr. Mattia Rattaggi.
"Crypto Valley"It is a term for the area around Zug, Switzerland, where many blockchain companies are based.The area is increasingly focusing with blockchain start-ups due to The progressive financial laws of Switzerland. Just like the Silicon Valley in California was the hub of the Internet revolution, Crypto Valley wants to be the hub of the blockchain revolution.
The report is entitled "Legal framework for distributed register technology and blockchain in Switzerland". It was issued by the State Secretariat for International Finance (SIF) today.
Explains the Swiss SIF in a press release that discusses the report
"Distributed ledger technology and blockchain technology are expected to have considerable potential for innovation and greater efficiency in both the financial and other sectors of the economy." "The Federal Council wishes to exploit the opportunities offered by digitization for Switzerland".
The objective of the regulation it is to create the best possible framework conditions so that Switzerland can establish itself and develop itself as a leading, innovative and sustainable position for the fintech and blockchain companies.
It is also expected that the regulations reduce criminal activity in the blockchain space:
"In addition, he wants to constantly fight abuse and ensure the integrity and good reputation of Switzerland as a financial center and place of business".
After releasing the report, the Federal Council of Switzerland instructed the Federal Department of Finance (FDF) and the Federal Department of Justice and Police (FDJP) to draw up a draft consultation in the first quarter of 2019 which will lead to sector-specific regulations, including civil law, insolvency law, financial market law, banking law and anti-money laundering law aimed at the blockchain space.
Some of the topics covered in the current report include:
- Applications of distributed ledger technology in the financial sector
- Foundations of distributed ledger and blockchain technology, including blockchain and DLT
- The international environment for blockchain technology, including the position of Switzerland in the blockchain space and the way in which other countries manage it
- Legal basis for blockchain civil law regulations, including legal forken classification in accordance with applicable Swiss laws, data ownership rights, token transfers and other
- Processing of crypto goods and data in insolvency proceedings, including the segregation of cryptocurrencies in divorce proceedings and similar procedures
- How the financial market laws apply to cryptography
- How current Swiss regulations, including the Financial Institutions Act (FinIA) and the Federal Financial Services Act (FinSA), apply to the blockchain
- How to create regulations that effectively govern blockchain technology by continuing to fight terrorist financing and money laundering, among other illegal activities
Here you can read the complete report of the Federal Council of Switzerland.