Switzerland continues to expand its position as a crypto and fintech location. New legal changes are expected to pave the way for the development of blockchain and distributed ledger technology (DLT).
More legal security, fewer obstacles for blockchain applications and the minimization of abuse – these are the cornerstones of the new blockchain laws in Switzerland. Already in June 2020, the National Council had approved amendments to the law, which should improve the framework conditions for the blockchain industry.
Now the Swiss parliament announced on September 10th, 2020, that the Council of States (the second chamber of the Swiss Federal Assembly in addition to the National Council) has also approved the bill. With this, the Alpine state once again proves its innovation-friendly attitude and its potential as a fintech and crypto location. Cryptocurrencies are already accepted as means of payment in many places in Switzerland.
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Fewer hurdles means more innovation!
For example, it should be easier for companies that only offer financial services to institutional or professional customers. In future, they will not have to join an ombudsman’s office. In order to limit the risk of abuse, a new category of authorization is to be created for the commercial operation of DLT infrastructure providers. Furthermore, the separation of crypto-based assets from the bankruptcy estate will be clarified by law.
Switzerland has always been one of the most crypto-friendly countries. Especially in the canton of Zug a flourishing crypto scene has established itself. Numerous companies, associations and organizations around Bitcoin and Blockchain have settled in Zug, including the Crypto Valley Association. In future, citizens in Zug will even be able to pay their taxes in Bitcoin (BTC) and Ethereum (ETH).
Switzerland strengthens its position as a crypto friendly country
With the new framework, Switzerland intends to further strengthen its position as a crypto-nation. Among other things, startups should benefit from the changes in the law. Especially in the current economic crisis, increased legal security is important here, as was already stated in June when the National Council discussed the changes.
The coronavirus has made the situation even worse for many companies. According to a survey by the Swiss Blockchain Federation, almost 80 percent of the startups in the Swiss crypto industry expect to go bankrupt.
Last but not least, the removal of hurdles for blockchain applications and higher legal security should also attract foreign investors and companies to Switzerland.
Since last year, through a collaboration with the European payment and transaction service provider Wordline, the crypto broker Bitcoin Suisse started to increase the acceptance of cryptocurrencies in Switzerland. The companies have entered into a partnership to provide crypto payment services for merchants in Switzerland, as Switzerland Global Enterprise reported on November 11th, 2019.
Switzerland strengthens its position as a crypto friendly country [Born2Invest]
