New Legal Framework in Switzerland Gives Boost to Blockchain

The Swiss State Secretariat for International Finance announced the Federal Council's adoption of a recent report-Legal Framework for Distributed Ledger Technology and Blockchain in Switzerland-and expressed their intent to assist in developing laws for new technologies, specifically distributed ledger technology and blockchain innovation.

In a Dec. 14th press release, the Swiss State Secretariat released a report outlining predictions for blockchain's "Remarkable and potentially promising developments for innovation and enhanced security," while at the same time, holding a cautious tone about the future of regulation regarding the new technology.

The report outlines the fundamentals and potential uses of blockchain and DLT tech, places this insight in an international context, examines the applicable legal framework-particularly financial market law and classification of tokens as 'assets'-and discusses potential problems.

Swiss authorities should position themselves as open towards new technologies.

" wants to create the best possible framework conditions so that Switzerland can establish itself and evolve as a leading, innovative and sustainable location for fintech and blockchain companies.

The primary goal, as stated in the report, is a boon for struggling blockchain tech, especially in terms of acceptance and universalization.

"The preferences of the market and society should decide which technologies prevail, while policy should ensure optimal and innovation-friendly framework conditions."

The report mentions the awareness of potential threats from money launderers, as well as terrorists using the new technology to nefarious ends.

Still, Switzerland is poised to take on the challenge of blockchain technology.

Along with its reputation for economic freedom, perhaps Switzerland will become known as a sanctuary for blockchain and cryptocurrency technology.