Switzerland Passes Blockchain Legislation Unanimously; Will Take Effect Early 2021

  • Switzerland has finally approved legislation for blockchain and digital assets, making it one of the major financial hubs to have a formal regulatory reference point for the upcoming crypto market.
  • The country’s parliamentarians voted unanimously for the ‘Blockchain Act’ that had been passed earlier in summer.

According to a report by the international unit of Swiss Broadcasting Corporation, SWI, this legislation on DLT’s and blockchain is likely to come into effect at the beginning of 2021. The milestone will open up doors for Swiss crypto-savvy investors to participate in the latest tech, including decentralized finance (DeFi); companies will also be able to tokenize shares within the law amongst other assets.

These new blockchain-oriented laws for Swiss crypto companies define several events and the probable course to follow, should such situations arise. Given the new dynamics underpinning crypto ecosystems, some underlying laws on bankruptcy and security trading have been amended to accommodate the digital assets.

The legislation goes to the extent of providing clarity on trading security tokens as well as due diligence procedures by service providers. The clarifying is an effort to curb money laundering and terror financing activities that appear to be thriving in crypto networks. Speaking to Decrypt, Urs Bolt, a leading Swiss FinTech influencer, noted that the new laws would be a big boost for the country’s burgeoning crypto space. He commented,

“Overall, it will create one of the most favorable regulatory environments in the world. It will allow the financial center to lead in the digital asset space and hopefully attract new business into CryptoValley.”

Interestingly, this latest legal advancement comes just after Switzerland’s Canton of Zug decided to accept tax payments in crypto. The town, which has earned a nickname ‘Crypto Valley’ due to the high blockchain and crypto activity, said that residents can now pay their taxes in Bitcoin (BTC) and Ethereum (ETH) via QR codes; the initiative will roll out in Q1, 2021.

It is quite noteworthy that Switzerland joins its neighbors Malta and Liechtenstein, which had already enacted comprehensive legislation for blockchain-related tech. However, the country’s position on a CBDC remains unclear despite global hype and China’s debut of its digital yuan.

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Edwin Munyui
Edwin Munyui
Edwin is a FinTech enthusiast with a particular interest in blockchain technology and cryptocurrencies. He has worked as an author in the blockchain space since 2017 and enjoys creating content that both crypto veterans and newbies can understand. His simple writing style and financial market knowledge have made him a reputable fundamental and technical analyst with the ability to handle any topic around blockchain and crypto over the years.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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