Swiss parliamentarians approved a new financial and corporate regulation changes package that acknowledges the cryptocurrency and blockchain industries.
According to a Swiss Information Article, the Government changed several regulations, from the bankruptcy to the exchange in shares.
The new regulation determines the legalities of digital stock transactions and the legal mechanism to regain intangible properties from distressed firms. It also specifies the regulatory criteria for conducting cryptocurrency trade so that the possibility of money laundering of cryptocurrency is mitigated.
This amendment comes after adopting the “Blockchain Act” by members of the Parliament in the summer of 2020 without any objection.
The latest version of current laws will presumably come into practice at the beginning of next year. This is supposed to offer Switzerland a huge boost to the blockchain and cryptocurrency industry and digital finance.
Today, Switzerland has over 900 blockchain and cryptocurrency firms, including Facebook’s Libra, with over 4,700 workers.
The European Nation has played an important role in the banking and finance environment, renowned mainly for its stunning alpine scenery and luxury products. It was also swiftly accepted blockchain and crypto-currency, after which time it assisted the experimentation of both established and emerging firms.
Also, public and private industries in Switzerland are working with this technology alongside the state, seeking to drive for blockchain and cryptocurrency progress.
In Switzerland, private crypto-monetary banks have appeared. After the Swiss financial market supervisory authority issued Swiss banking licenses, Sygnum and Seba Crypto AG became the country’s first cryptocurrency banks in 2019.
According to a Swiss Data report, after the legislation had been passed in an unfinished way by the House of Representatives, the Blockchain Act in Switzerland was formally reformed by the Senate.
As detailed, the reformed Blockchain Act has provided crucial updates from bankruptcy to the exchange of shares. In compliance with the new laws, an established legal framework has been developed for exchanging digital shares only. The reformed legislation further aims to outline the legal procedures for recovery from distressed corporations of intangible properties. The legislation should be enforced in the first quarter of 2021, depending on indications.
The county currently houses some 900 blockchain businesses with an approximate overall workforce of around 4.700 as gleaned in the Swiss Information survey. Switzerland is recognized as the fast-growing center for the blockchain market in the world. These statistics will improve if the current bill is introduced in full.
The laws currently being reformed will set a remarkable precedent for stronger and equitable blockchain legislation from the Swiss Federal Council. The topic of its influence is essential to many as the wishes have been heard, and the Blockchain Act has been reformed.
The latest regulation is supposed to shed new light on technology and its related technologies by the extremely blockchain and crypto wary Swiss banking industry. Failure to help blockchain and cryptocurrency will make current banks lose customers for the two blockchain companies Sygnum and Seba Crypto AG, Switzerland’s highest banking authority, the financial sector surveillance authority.