Crypto Regulation Instruction of Swiss Federal Council Approved, Allowing Changes in Existing Legislation
In every country, the legislation involving cryptocurrency is still evolving. The Swiss government recognizes that there are some changes in the evolving atmosphere that make it necessary to adapt to its needs. A recent motion to instruct the Federal Council in the adaption of crypto regulations has been approved, according to reports from Cointelegraph auf Deutsch on March 20th.
The new motion, which was first brought to the discussion by assemblyman Giovanni Merlini, will be helping the Federal Council to adjust the current provisions that concern the judicial and administrative divisions’ procedural instruments. This approval will allow the Federal Council to adjust the instruments to easily be applied to cryptocurrencies. The motion was approved with 99 votes in favor, and 83 votes opposed. There were 10 abstentions.
By implementing this motion, the gaps in protecting users from the potential illicit activities of the market, like extortion and money laundering, should be closed. The new legislation will deal with how to eliminate these risks and will determine if the entities in charge of the trading platforms for crypto will be considered financial intermediaries. If they are classified under this definition, the entities will end up being subjected to the supervision by the financial market.
Ueli Maurer, the Swiss finance minister, said that the proposal of these changes fell outside the planned regulations, upon approval. Earlier in December last year, Maurer had said that the laws in Switzerland should be adjusted to make room for the blockchain and crypto technology, rather than implementing legal framework separately.
This month, the international banking authority in Switzerland – the Basel Committee on Banking Supervision (BCBS) – said that the growth of the crypto industry posed a threat to the financial stability of banks. The BCBS added that these crypto assets should not be considered safe, regardless of being a store of value or medium of exchange. As such, the term “cryptocurrency” should be misleading, the authority commented.