In Switzerland, lawmakers have launched a new system of laws for regulating digital currency and blockchain in the nation, in a plan that has formed new legal certainty for the sector.
Transferred onto the statute books last week, the new laws come in corporate and finance law reforms, which give blockchain and digital currency a firm legal footing for the first time.
The laws offer first-time translations for digital exchange securities and spell out the legal process to seize digital currency assets in bankruptcy. It also outlines the role of trading exchanges concerning anti-money laundering policies and other compliance measures.
The amendments follow on from the Blockchain Act 2020, passed into Swiss law without restriction by the House of Representatives in early 2020.
The new form of laws offering definitions for blockchain and digital currency is set to effect early in 2021. With the industry already growing in Switzerland, the new legal framework is expected to make the European country even more appealing to entrepreneurs, investors, and startups.
At present, Switzerland is home to over 900 blockchain companies, including Facebook’s Libra Association, which has 4,700 employees.
Leaning and relying on its traditional reputation for expertise in banking and finance, there has been a concerted effort to make Switzerland appealing for the blockchain and digital currency industries, with lawmakers quick to understand and support the sector’s growth through legislation.
Furthermore, several private and public initiatives have been running in Switzerland to attract interest from the blockchain world, including private digital currency banks like Signum and Seba Crypto AG, which became the first to be granted a digital currency banking license by the Swiss Financial Market Supervisory Authority in 2019.