February 5, 2023

Swiss Federal Council proposes adaptation of legislation for blockchain

Swiss Federal Council proposes improved legislation on distributed technology registry (DLT) to clearly identify the legal status of technologies and remove barriers to their use.

Last December, the Council submitted a report onregulation of the blockchain in the financial sector, according to which Switzerland seeks to create the best conditions for the development of the latest technologies so that the country becomes a leader in the field of fintech, blockchain and digital innovations.

Council proposes to adapt federal lawsfor projects developing in the blockchain industry in order to simultaneously eliminate the risk of using cryptocurrencies for illegal purposes. Thus, the Council revised last year’s report and introduced a number of amendments to nine federal laws covering civil law and the financial market. Parliament will consider this proposal early next year.

Switzerland is known to be loyal tocryptocurrencies and blockchain. This is also proved by the fact that in October the National Bank of Switzerland and the Bank for International Settlements (BIS) signed a cooperation agreement, under which banks will study the state cryptocurrencies and their integration into the distributed registry infrastructure. However, President of the National Bank of Switzerland Thomas Jordan is still worried that the stablecoin issued by the Central Bank of the country may violate the entire monetary policy of Switzerland.