Switzerland opens the regulation door for blockchain

[PRIBO247]

Switzerland has become one of the leading locations for
blockchain companies and blockchain business models
'Legal implementation now needs to follow on quickly from this
report. Switzerland needs this certainty as the basis for further
development.'

In recent years Switzerland has become one of the world’s
leading locations for blockchain companies and business
models.

Hundreds of companies have settled between Zug and Zurich, in
Geneva and in Ticino, to work on improving existing structures
or to bringing new products and services
to market. These companies are all based on a decentralised
network through which trust and security can be created: the
blockchain.

But, these companies need legal certainty.
The Swiss government has gone some way to address this, and
has outlined a potential approach to blockchain regulation. The
Swiss Blockchain Federation has welcomed this report
published today by the Federal Blockchain/ICO Working Group
and supports the path being taken by the Federal Council.

Government role
In the second half of 2017, politicians and the public alike
became aware of the blockchain ecosystem in Switzerland,
which came to be known as “Crypto Valley”. This was not
ignored by the Swiss government in Bern, as policymakers there
began to appreciate what was happening on their doorstep; they
realised its enormous social potential.
But, the rise in blockchain as an everyday technology — not just
as a foundation for digital currencies — brought with it challenge
and anxiety, especially surrounding regulation.
The report picks up on several of the points raised in the white
paper published by the Blockchain Taskforce (the predecessor to
the Swiss Blockchain Federation) in early 2018. The Swiss
Blockchain Federation is now calling for the report to be rapidly
put into action with a binding agenda, so that blockchain
companies can enjoy legal certainty in the near future. This is
fundamental to further developing Switzerland as a blockchain
location.
The publication of the report ‘marks an important step in this
direction and provides a detailed survey of the legal challenges
that these new business models create,’ according to the
announcement.
The idea of a task force to tackle such challenges spread rapidly
amongst leading figures from the economic sector, from
industry, politics, science, society – and soon a multitude of
stakeholders became involved. The Blockchain Taskforce was
formed within a period of two weeks at the end of 2017, with the
active participation of universities, companies, lawyers,
Government Councillors, Councillors of States, and National
Councillors. More than 50 individuals came forward to donate
their time and insights under the patronage of Federal
Councillors Johann Schneider-Ammann and Ueli Maurer.
Instead of debating what a good or bad blockchain future might
look like, the work of our group is geared towards turning that
initial spark into a bonfire – for the benefit of Switzerland and of
the world.

Blockchain law
The report does not call for a separate blockchain law, preferring
to amend existing civil and financial market law. This reflects
the objective of setting the framework conditions so that
Switzerland can strengthen and extend its leading position in
blockchain.

The fact that Switzerland is taking a pragmatic approach is to be
welcomed, and other countries are likely to follow suit as
blockchain technology becomes more widely-used.
For Heinz Tännler, President of the Swiss Blockchain Federation,
things are clear: “Legal implementation now needs to follow on
quickly from this report. Switzerland needs this certainty as the
basis for further development.”

The 10-point program launched recently by the Swiss
Blockchain Federation to strengthen blockchain technology in
Switzerland also calls for a binding agenda from the regulator.
This position paper spells out the social policy, regulatory and
public interest issues that need to be settled if Switzerland is to
be a successful blockchain location.

Several points in the federal report have been taken up from the
white paper of the Blockchain Taskforce, out of which the Swiss
Blockchain Federation emerged at the end of October 2018, such
as a proposed change in civil law for transferring tokens. The
Federal Council’s report also concurs with the analysis that it
does not seem necessary to change anti-money laundering
legislation at present, as the existing rules can also be applied
to new business models.

Source: https://www.information-age.com/