The Swiss government expects that it will be able to incorporate new financial technologies into the existing legal framework.
On Friday, the country's Federal Council published a report in which it described the legal norms for the technology of the distributed ledger, while acknowledging that they still need to be improved.
The Council proposes to change the current legislation in the field of securities, so that the situation around cryptocurrency tokens becomes more specific.
Since an entry in a decentralised register accessible to interested parties can create publicity similar to the ownership of a security, it seems justified to attach similar legal effects to this entry.
The highest executive authority of the Swiss Confederation
In addition, the authorities intend to separate cryptocurrency assets from the common property of persons declared bankrupt. The current legislation in this area does not give a clear answer to the question of how to handle such assets during the bankruptcy procedure.
Infrastructure providers in the blockchain sector are invited to be placed in a separate “authorized category” and taken into account in the law on the infrastructure of financial markets. Other changes to this law are subject to further discussion, since the concepts of securities and derivatives are also applicable to blockchain markets.
The Council does not consider it necessary to change the legislation in the sphere of combating money laundering, because it is already so effectively applied to regulate cryptocurrencies and ICO.
The Swiss government has been dealing with blockchain industry regulation since 2016. It was then that the country's finance ministry announced its intention to take control of financial technologies.
Recently, the Swiss Financial Market Supervision Authority (FINMA) submitted a “lightweight” license for representatives of the fintech sector, which can be obtained by companies working with blockchain and cryptocurrency.