Swiss parliamentarians on Thursday passed a new set of finance and corporate law amendments that recognize the blockchain and cryptocurrency industry.
As per a Swiss Info report, the government has amended several laws ranging from company bankruptcy to securities trading.
The new set of laws define the legalities of exchanging digital securities and also the legal process of reclaiming digital assets from companies that go bankrupt. It further defines the legal requirements for running cryptocurrency trading exchanges such that it may mitigate the risks of money laundering using cryptos.
These amendments come after the members of the House of Representatives passed the “Blockchain Act” without any opposition in the summer of 2020
It is likely that the new form of the existing laws will come into effect early next year. With that, the blockchain and cryptocurrency industry and decentralized finance are expected to gain a massive boost in Switzerland.
At present, Switzerland is home to more than 900 blockchain and cryptocurrency companies, including Facebook’s Libra, that employ approximately 4,700 people.
The European nation, mostly known for its beautiful alpine landscapes and luxury goods, has been a major player in the world of banking and finance. It has also been quick to adopt blockchain and cryptocurrency and has since supported both existing and new companies to experiment with the technology.
Alongside the government trying to push blockchain and cryptocurrency innovation, many public and private sector companies in Switzerland are also experimenting with this technology.
Private cryptocurrency banks have also sprang up in Switzerland. In 2019, Sygnum and Seba Crypto AG became the first cryptocurrency banks in the country after receiving a Swiss banking license from the Swiss Financial Market Supervisory Authority.