Phase One of the Crypto Regulatory Framework in Switzerland Begins
As of today, phase one of the regulatory framework regarding the cryptocurrency and blockchain in Switzerland is operational. Back in 2020, the Swiss Parliament proposed a regulatory framework for blockchain technology and cryptocurrency. It was a two-part proposal and now the implementation of phase one of the proposal has begun.
Swissinfo reports that this new regulatory framework will be a step towards the improvement of crypto and blockchain in Switzerland. The stakeholders of the industry are in favour of these financial reforms that the amended legislation passed by the parliament includes.
A board member of a digital bank SEBA, Hans Kuhn, says that these laws have established a place for Switzerland in the emerging digital economy trend of the world. Blockchain-based securities being regulated highlights that the country is working on promoting digital innovation.
A license has been granted to Crypto Broker AG from FINMA or Swiss Financial Market Supervisory Authority. With this license acquired, the firm can allow tokenized securities to its customers. Crypto Broker AG is now in league with other license holders like SEBA and Signum Bank.
With the second part of the regulatory framework coming into existence a bit later in the year, companies will be able to establish a presence in the virtual assets market through regulatory trading. The trading of crypto will be secure and regulated.
The second part of this regulatory framework will also cover important financial market infrastructure. Through this blockchain act, trading crypto securities and other exchange operations regarding the cryptocurrency will be backed legally.
With the implementation of this framework, Switzerland has now become one of the few countries to fully regulate crypto and blockchain. Swiss laws have enhanced the existing laws that can fit the blockchain market.