In many developed countries, blockchain and crypto have no legal ground. However, in an attempt to bring innovation and efficiency, the Swiss government has called for creating a wide-range strategy. This upcoming legal status would allow the authorities to make their financial and all smart-contract based dealing more efficient.
What’s their primary concern?
Well, the main aim is to create and introduce a crypto token within their business infrastructure. It would kill the monopoly of market leaders and give everybody a chance to do business. On a broader level, this strategy would help them create a new regulatory category. As a result, certain financial activities will be carried out without requiring banking licensing. That’s where the potential of smart contracts comes into play!
What’s their take on it?
See, Switzerland’s stance to implement regulations for blockchain is a decent initiative. However, as mentioned in an official report, the government is yet to test its potential. They explicitly say that a ‘conclusive estimate’ of blockchain’s maximum potential cannot be given at the moment. For that, they need to test several use cases on an industrial level.
Please note that Switzerland supports and practices digitalization to a great extent. But introducing regulations for blockchain would be a great challenge to stand by with. The current technological landscape requires plenty of changes.
How would Switzerland’s blockchain regulations affect the current laws?
One of the key laws that require amendment is related to bankruptcy. To start with, it is important to consider all data as an asset (as required in a blockchain network). Therefore, whenever courts begin investigating the insolvent firms, they know every detail about a given asset.
The Swiss finance ministry is also working hard to draft an act for including a category for ‘funds’. As a result, innovative startups can be brought to the market easily. The aim is to cut down a major chunk of hassle and fee while being flexible.