The Switzerland parliament has greenlighted legislation to update the nation’s existing corporate and financial laws to incorporate cryptocurrency and the underlying distributed ledger technology (DLT), according to reports on September 11,2020.
Swiss Makes Way for Blockchain to Succeed
While Switzerland already maintains a reputation as one of the most friendly regions for bitcoin (BTC), altcoins and blockchain-focused businesses, with a vast array of projects including Facebook’s Libra Association finding peace in the state, authorities are now poised to make things even better.
Per sources close to the latest development, on September 10, 2020, the Swiss parliament successfully updated its legal code and passed a vast array of financial and corporate laws that could open the country’s doors to decentralized finance (DeFi) and more.
Dubbed the “Blockchain Act,” the legislation has reportedly made it through the nation’s House of Representatives unopposed and if all goes as planned, it could take effect from early 2021.
Inside the Swiss Blockchain Act
The Swiss Blockchain Act is designed to put in place an enabling environment for decentralized finance to thrive, while also maintaining the integrity of the nation and making it harder for rogue actors to operate.
Unlike its neighboring country Liechtenstein, which painstakingly formulated entirely new rules for its blockchain and assets tokenization ecosystem, the Swiss government has taken a different approach by simply amending existing legislation.
The Blockchain Act creates a distinction between payment cryptocurrencies such as bitcoin (BTC) and security tokens. Existing bankruptcy and insolvency laws will also be tweaked to incorporate digital currencies, while financial market regulations will also be amended to create a license category for blockchain-focused businesses.
Commenting on the matter, Heinz Tannler, President of the Swiss Blockchain Federation, a public-private partnership that’s focused on promoting the creation of amenable regulations for DLT, said:
“Starting from 2021, Switzerland will have a regulatory framework that is among the most advanced in the world.”
In related news, BTCManager informed on September 1, 2020, that Atupri, a heavyweight Swiss Health Insurance company has added support for cryptocurrency payments.
And on September 4, reports emerged that the Swiss Canton of Zug, which is popularly known as crypto valley is now making plans to start accepting bitcoin and other digital currencies for tax payments.