The Government of Switzerland Set to Relax its Cryptocurrency Laws

The Government of Switzerland Set to Relax its Cryptocurrency Laws

Switzerland blockchain

The Government of Switzerland has made it known that it will be relaxing its laws directed at the blockchain and cryptocurrency industry. According to the official report, the government has taken a fresh legislative approach to blockchain regulation.

The Swiss Federal Council has Plans

The Swiss government has recognized the importance of blockchain technology to the overall growth of the economy and the country’s financial sector.

According to the report, the Swiss Federal Council has its mind set on maintaining Switzerland as a force to reckon with financially. The council also has plans to “exploit the opportunities offered by digitalization.”

According to the report from the council, the plan is to have a flexible legal structure in place. The purpose of this is to ensure that the blockchain industry, as well as other emerging technology within the country, thrives. This will further help Switzerland evolve “as a leading and sustainable destination for fintech, blockchain, and innovative companies in a number of fields.”

High Risk

The report has also made sure to address the high risk involved in dealing with cryptocurrency as a whole. The report also recognized the fact that cryptos are being used for illegal purposes on a regular base. In order to still protect its citizen’s interest and still employ the benefits attached to DLT, the council made it known that the country’s laws would have provisions in place to help with recognizing encrypted digital tokens that are not backed by any physical assets.

The Federal Council also stated that: “it wants decentralized financial transactions to have a place in the legal code.”

Swiss economist Luzius Meisser has also made some comment expressing his belief that the new legislative approach has great potential. His statement reads:
“This shows once again how the traditional Swiss approach of having principle-based laws that give a lot of discretion to citizens and regulatory agencies are much more innovation-friendly than overly detailed European-style laws.”