Phase one of Switzerland's blockchain law goes into effect
The first phase of Switzerland’s two-part crypto and blockchain regulatory framework is effective as of today.
On Monday, part one of the Swiss blockchain law covering company reforms went into effect. Back in September 2020, the country’s parliament passed an expanded regulatory framework for crypto and blockchain technology in the country.
According to a Swissinfo report, the implementation of the new regulatory paradigm will help to improve Switzerland’s burgeoning crypto and blockchain scene. Indeed, industry stakeholders in the country praised the expanded financial and corporate reforms included in the amended legislation passed by parliament in September 2020.
For Hans Kuhn, a board member at digital bank SEBA, the blockchain law establishes Switzerland’s place in the emerging digital economy. According to Kuhn, the regulated issuance of blockchain-based securities points to the country’s focus on promoting digital innovation.
Also on Monday, Crypto Broker AG announced it had secured a license from the Swiss Financial Market Supervisory Authority, or FINMA. With the license, the brokerage firm that cleared over $1 billion in trades last year can now offer tokenized securities to its clients.
Crypto Broker AG now joins the likes of SEBA and Sygnum Bank as FINMA license holders in a further expansion of the regulated crypto securities trading arena in Switzerland. With part two of the Swiss blockchain law expected to come into effect in the summer, companies will be looking to establish a significant presence in the asset exchange market for regulated trading of these crypto securities.
Part two of the Swiss blockchain law will cover significant upgrades to the country’s financial market infrastructure. This part of the blockchain act will provide legal backing for trading crypto securities as well as other cryptocurrency exchange operations.
Switzerland now joins Liechtenstein as one of the few countries to pass full-spectrum crypto and blockchain regulations that account for all major facets of the industry.
However, unlike the Swiss approach that amended existing laws to fit the blockchain market, Liechtenstein created a new legal framework for its cryptocurrency and blockchain market.