Switzerland is introducing legal reforms and licenses for blockchain trade in order to establish a regulatory framework to guide the untethered crypto industry.
Regulations To Gentrify BTC
In 2021, Switzerland introduced institutional as well as financial laws to provide a solid foundation on which to build a more gentrified and regulated crypto industry. Over the last two years, two crypto banks, a crypto stock exchange, and the country’s first crypto assets fund have received their licenses to trade on the blockchain. The plan is to shave away all the unpredictability and make the blockchain model more suitable for respectable financial institutions.
Former Head of Crypto at the Falcon Pvt Bank, Katie Richards, believes that the country is constantly innovating to keep up with the market requirements and challenges. She said,
“The market has matured, the legal framework is there, licenses are being handed out, a pipeline of new financial products are being created.”
Cryptocurrency In Switzerland: The Past And The Future
With countries like China and the US frowning down on cryptocurrency, the neutral country of Switzerland has been considered a safe haven for the industry. Switzerland has been in the game for a while now, from non-profits appointed to hold funds from blockchain projects, military alpine bunkers converted to crypto storage facilities. Therefore, the country is now looking to close the gap between the murky blockchain world and conventional businesses.
Regulations Can Be Blessing, Not Curse
A regulatory framework is actually a blessing to the still-fresh industry. The certainty will give the industry a solid roadmap to follow, untroubled by the regulatory doldrums plaguing the industry in the United States. Moreover, knowing what is allowed and what is not helps guide business models and revenue plans, especially when creating blockchain-compliant securities, like company shares or ownership rights for NFTs.
According to the DarkFi decentralized project creator, Amir Taaki, Switzerland’s regulations are far more favorable than the decidedly anti-crypto laws being implemented in the US. He says,
“Governments are waging a war against cash, society and the economy. China is becoming a role model for Western states. Switzerland is the last safe haven.”
Problems Persist Even In Safe Haven
Despite making strides along the path of crypto-regulations, the financial industry has still held on to its suspicions about the industry. Most banks are concerned about illegal activities using crypto funds and money laundering troubles. This is why they are highly wary about assigning bank account to crypto start-ups. However, increasing oversight is also not advisable as it goes against the module of decentralization, which is at the core of blockchain technology. Therefore many industry experts believe that the rigid rules governing banks and other financial institutions should be replaced with decentralized technology inspired by blockchain to democratize operational control.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.