Switzerland is willing to embrace new technologies. It is worth mentioning that phase one of the Swiss blockchain law covering company reforms went into effect on Monday. As a reminder, several months ago, the country’s parliament passed an expanded regulatory framework for crypto as well as blockchain technology in the country.
People should take into account that the implementation of the new regulatory paradigm will help to improve Switzerland’s flourishing crypto and blockchain scene. Interestingly, industry stakeholders praised the expanded financial and corporate reforms.
We are talking about the reforms included in the amended legislation approved by the country’s parliament in September 2020.
Importantly, the blockchain law once more underlines the place of Switzerland in the emerging digital economy. Moreover, the regulated issuance of blockchain-based securities points to the country’s focus on promoting digital innovation.
This is not the end of the story as Crypto Broker AG also made an interesting announcement on Monday. According to the announcement, it secured a license from the Swiss Financial Market Supervisory Authority or FINMA. Thanks to the license, the brokerage firm can now offer tokenized securities to its clients.
It is worth noting that Crypto Broker AG now joins famous organizations like SEBA and Sygnum Bank as FINMA license holders. Moreover, part two of the Swiss blockchain law is expected to come into effect in the summer. Importantly, thanks to the second part, companies will be able to establish a significant presence in the asset exchange market for regulated trading of these crypto securities.
Part two of the Swiss Blockchain law
Let’s have a look at part two of the law. Interestingly, this part of the blockchain law will cover significant upgrades to the country’s financial market infrastructure. Importantly, the second part of the act will provide legal backing for trading crypto securities and other cryptocurrency exchange operations.
It is worth noting that, Switzerland now joins its neighboring country Liechtenstein as one of the few countries to approve full-spectrum crypto and blockchain regulations, that account for all major facets of the industry.
Nonetheless, Liechtenstein created a new legal framework for its cryptocurrency as well as blockchain market. In the case of Switzerland, the country amended existing laws. As a reminder, Liechtenstein’s parliament passed the Act on Tokens and Entities Providing Services Based on Trusted Technologies in 2019. The purpose of this act is to improve investor protection, among other objectives.