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With the reformed laws, Swiss banking institutions are expected to have a switch in their blockchain and crypto integration models.
New Swiss law reforms have been enacted by the Switzerland Senate that will give blockchain and cryptocurrency companies a new lease of life. Already a nation with a number of blockchain-based firms, the newly reformed Swiss laws will give a deeper footing to blockchain entities in the alpine country.
Per a report from Swiss Info, the country’s senators rapidly passed a wide-ranging set of financial and corporate law reforms on Thursday. The laws embodied in the “Blockchain Act” had already sailed through the House of Representatives unopposed back in the summer. From indications, the new Swiss laws will likely come into effect early next year.
As Swiss info detailed, under the reformed laws, a firm legal basis for exchanging digital-only securities, for reclaiming digital assets from bankrupt companies. It also sets legal standards for crypto trading exchanges and tackles the threat of money laundering using cryptocurrencies.
The move by the Swiss Senate in reforming existing laws has been welcomed by key figures in the industry including Heinz Tännler, President of the Swiss Blockchain Federation who said that “Switzerland will have a regulatory framework that is among the most advanced in the world.”
Swiss Blockchain Law Reforms Will Drive Further Growth
The move by the Swiss parliament to reform the existing blockchain and crypto laws will serve as a springboard for more blockchain-based innovations in the country.
Already a country with over 900 blockchain companies together employing about 4,700 staff, Switzerland has seen the emergence of crypto banks including Sygnum and Seba Crypto AG, blockchain-based asset managers, real estate ventures, and alpine cryptocurrency vaults amongst others.
At its infancy, the Facebook‘s Libra project faced many rejections from economic powerhouses including the United States of America but saw grace with the Swiss financial regulator FINMA. Back in September 2019, Dante Disparte, Libra Association’s head of policy and communications, said the organization has been engaged in constructive dialogue with FINMA. He noted:
“Since our vision for the Libra project was announced 3 months ago, we have maintained our commitment that technology-powered financial services innovation and strong regulatory compliance and oversight are not in competition. This is an important step in the Libra project’s evolution, and we look forward to continuing our engagement with all stakeholders over the coming months.”
Consequent to this, the Libra project got tipped to get licensed in Switzerland even when it is still facing regulatory hurdles in the U.S. to date.
With the reformed laws, key banking institutions that already have a negative disposition with digital currencies noting its potential to be used in illicit transactions are expected to have a switch in their blockchain and crypto integration models.
As Swiss info adduced, banks are also taking note of new potential to disrupt finance. If they ignore such possibilities, they risk losing out to competitors such as Sygnum or SEBA, two crypto banks that were granted banking licenses last year.