Swiss Executive Branch Calls for Better Regulatory Framework for Blockchain

The Federal Council of Switzerland—the nation’s executive governing body—has called for an improved regulatory system for distributed ledger technology (DLT) and blockchain in the nation.

As indicated by a press release on November 27, the Federal Council embraced a dispatch clarifying its needs for enhancing blockchain and DLT legislation. The proposition targets legal certainty in the sector, along with eliminating obstructions for blockchain-based applications and decreasing the risk of abuse.

The Council hence reexamined a report initially published in December last year and presented a scope of proposed changes to a series of federal acts covering civil law and financial market law. According to the announcement, the Swiss Parliament will analyze the proposal in early 2020.

Switzerland is known for its crypto-and blockchain-friendly methodology both in the advancement of the business and related laws. While a few of Europe’s regulators are prepared to block private “parallel currencies,” Mark Branson—the director of the nation’s Financial Market Supervisory Authority—stated in September that Facebook’s Libra venture fits perfectly into their current regulatory system.

In October, the most recent report by the nation’s main industry body, Crypto Valley Venture Capital (CV VC), proposed that the Swiss blockchain industry was making noteworthy gains, pointing to expanded valuations and increasing employment figures.

Moreover, the association evaluated that the Swiss ecosystem all in all encompassed 800 entities, tapping 4,000 individuals, including six “unicorns”—new companies with valuations surpassing $1 billion.