The Swiss Legal Framework Can Handle Blockchain With Selective Adjustments

According to a report based on the blockchain working group that conducted analysis, the blockchain was adopted by the head of state and the Swiss government. In the latest crypto news, we take a look at the Swiss blockchain legal framework.

Along with the plenty of the things that the report concludes, the legal framework of Switzerland will only make selective adjustments for how the blockchain technology is used and will not make any fundamental adjustments.

The Federal Council currently cannot find any fundamental issues regarding the financial market law especially the DLT based applications and the market is generally technology-neutral.

The adjustments that were mentioned are mostly targeted towards banking law, civil law and anti-money laundering law. According to the Federal Council, the legal certainty of transferring rights via digital registers must be increased.

Also, the Federal Council called for a flexible authorization category mostly focusing on the blockchain-based infrastructures on the market to be devised. The government body noted:

‘’Such challenges exist namely in the areas of trading tokens via central trading platforms and in the application of financial market law to decentralized financial market “infrastructures” …  Hence, it seems more expedient to address the challenges in financial market infrastructure law that are specific to blockchain/DLT applications by means of specific amendments (instead of a regulatory carve-out).’’

The governing body proposed other adjustments in insolvency law calling for segregation of cryptocurrencies and digital assets saying that it is ‘’necessary to provide for unambiguous rules regarding the segregation of crypto-based assets from the bankrupt’s estate by analogy to the owner’s right to segregation under current law.’’

Other areas where adjustments were proposed include the anti-money laundering law were trading platforms should be more subjected to the country’s Anti-money Laundering Act.