Switzerland plans to add the new financial technologies to the current legal framework.
The legal framework for the DLT (distributed ledger technology) was reviewed in the Federal Council report released last Friday. At the same time, it was indicated that the framework definitely needs further development and update.
According to the document, the changes of the securities guidelines are aimed at making the crypto token issue more unique and definite.
"The Federal Council intends to further improve the prerequisites so that Switzerland can exploit the opportunities offered by digitalisation. It thus 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 – and innovative companies in general," reads the report.
The Council council stated:
"Since an entry in a decentralised register accessible to interested parties can create publicity similar to the ownership of a security, it seems justified to attach similar legal effects to this entry."
Along with these measures, there are plans to consider crypto assets separately from the overall property of the insolvent. For now, the country does not have accurate rules for this area, so the players actually do not know how to deal with crypto assets if they face bankruptcy.
Speaking about other areas of the regulation, it was noted that the authority would leave AML measures unchanged given their current effectiveness in the crypto and ICO segments.