Swiss Executive Branch Calls for Improved Regulations for Blockchain

The Federal Council of Switzerland — the country’s executive governing body — has called for a better regulatory framework for blockchain and distributed ledger technology (DLT) in the country.

According to an official announcement released on Nov. 27, the Federal Council adopted a dispatch explaining its priorities for improving blockchain and DLT legislation. The proposal targets legal certainty in the sector, as well as eliminating barriers for blockchain-based applications and reducing the risk of abuse.

The Council thus revised a report initially released in December 2018 and submitted a range of proposed amendments to a series of federal acts covering civil law and financial market law. Per the announcement, the Swiss Parliament will examine the proposal in early 2020.

Switzerland’s forward-thinking approach to the industry

Switzerland is known for its crypto- and blockchain-friendly approach both in the development of the industry and related laws. While some of Europe’s regulators are ready to block private “parallel currencies,” Mark Branson — the director of the country’s Financial Market Supervisory Authority — said in September that Facebook’s Libra project fits perfectly into their existing regulatory framework.

In October, the latest report by the country’s main industry body, Crypto Valley Venture Capital (CV VC), suggested that the Swiss blockchain industry was making impressive gains, pointing to increased valuations and rising employment figures.

Furthermore, the organization estimated that the Swiss ecosystem as a whole encompassed 800 entities, employing 4,000 people, including six so-called “unicorns” — startups with valuations exceeding $1 billion.