Cryptocurrency-friendly Switzerland has passed extensive laws that open the door to cryptocurrency and decentralized financing (DeFi). This enables companies in the country to create digital stocks and a range of other tradable assets.
Swiss lawmakers passed a series of new changes to finance and corporate law on Thursday, 10th of September. This is to recognize the blockchain and cryptocurrency industries.
According to a report by Swissinfo, the government has changed several laws, from corporate bankruptcy to trading in new or legal securities that define the legality or exchange of digital securities, to legal procedures for recovering digital assets from bankrupt companies. It further defines the legal requirements for operating cryptocurrency trading exchanges. This is in order to reduce the risk of using cryptocurrencies for money laundering.
These changes were introduced after members of the House of Representatives passed the blockchain law in the summer of 2020 without objection. The new form of the existing law could come into force early next year. In this way, blockchain and cryptocurrency industries as well as decentralized financing in Switzerland will receive an enormous boost.
Switzerland: Home to Blockchain and Cryptocurrencies
There are currently more than 900 blockchain and cryptocurrency companies in Switzerland, including the Facebook Libra with around 4,700 employees. Known for its beautiful alpine landscapes and luxury goods, this European country has always been a major player in the banking and finance sectors. It also quickly adopted blockchain and cryptocurrency and has supported both since existing and new companies conducting technical trials.
Switzerland is not the first country to enact comprehensive blockchain laws (alongside Liechtenstein and Malta). However, it is the first major financial sector to do so.
In contrast to Liechtenstein, however, Switzerland is flexible with regard to supervision so that no new laws have to be passed. Therefore only existing laws need to be revised. As the industry develops, Switzerland may be able to revise it again.