Stakeholders in Switzerland’s growing blockchain scene are reportedly happy with the regulatory reforms passed by the country’s parliament.
Switzerland remains one of the more crypto-friendly nations in the world, with about 900 blockchain startups in operation across the country. Moderate regulations have helped create a diverse digital landscape with ventures like crypto banks, custody platforms, and asset managers.
Swiss Parliament Passes Blockchain Reforms
According to the English service of the media platform Swissinfo, Switzerland’s parliament passed financial and corporate law reforms targeted at the emerging sector. Dubbed the “Blockchain Act,” the new legislation which received unanimous backing, will come into effect in 2021.
Back in November 2019, BeInCrypto reported that the Swiss government was moving towards passing legal reforms aimed at supporting the industry.
As part of the newly passed law, statutes concerning bankruptcy and securities regulations received blockchain-focused updates. The Act also provides a legal framework for trading tokenized shares and general cryptocurrency exchange operations.
Apart from tokenized shares, it creates a legal basis for broader asset tokenization. Thus, firms can now list digital versions of assets like real estate, art, and other collectibles on blockchain platforms.
The news of the expanded legal mandate for crypto has reportedly gone down well with industry stakeholders in the country. Commenting on the development, President of the Swiss Blockchain Federation Heinz Tännler remarked that Switzerland is primed to have the most advanced set of blockchain laws in the world.
In October 2019, neighboring Liechtenstein became the first country to pass a complete set of laws for all major aspects of the token economy. While Switzerland’s Blockchain Act expands upon existing financial regulations, Liechtenstein elected to devise new guidelines.
Crypto and blockchain technology already boasts significant adoption in Switzerland. As previously reported by BeInCrypto, Galaxus, the country’s largest online retailer, began accepting cryptocurrency payments in March 2019.
The Swiss canton of Zug recently approved the use of cryptocurrencies for tax payments beginning from 2021. Zug, dubbed “Crypto Valley,” is also home to a majority of the country’s blockchain startups.