Switzerland's National Council has unanimously approved a sweeping overhaul of its financial regulatory framework targeting the blockchain industry. The legislative package revises a dozen existing fi
Switzerland's National Council has unanimously approved a sweeping overhaul of its financial regulatory framework targeting the blockchain industry. The legislative package revises a dozen existing financial laws, removing impediments for blockchain technology ventures while maintaining a favorable fiscal environment.
Introduced by the Swiss Federal Council last month, the amendments are expected to attract additional blockchain enterprises to the country. The Federal Department of Finance provided official support, stating that the changes aim to "establish firmer legal standing, eliminate barriers to DLT-based applications, and reduce vulnerabilities to misconduct."
The measures advance to the Council of States for further review, with final approval anticipated this autumn. Provisions included in the package would permit digital exchanges to secure registration with Switzerland's chief financial regulator.
Rolf H. Weber chairs the Swiss Blockchain Federation's regulatory affairs committee and specializes in financial market law. He characterizes the current legal environment for blockchain operators as needlessly restrictive, particularly regarding security token transactions. Existing rules require documentation of all transfers in written form, following the same model as bond transactions. The proposed amendments aim to eliminate these impediments.
"In my view, the most substantial revisions touch upon corporate and securities law," Weber noted. Following enactment, these provisions would allow token owners to register and move security tokens across blockchain systems free of legal obstacles.
Equally significant are the bankruptcy law revisions, which would enable token proprietors to recover assets from insolvent estates—something currently impossible. "This cannot occur with digital tokens today because ownership is not formally documented," Weber explained. "It is analogous to cash. You cannot reclaim or extract cash when a company faces insolvency."
Switzerland has positioned itself as a premier destination for blockchain enterprises. Zug became famous as Crypto Valley, attracting numerous token issuance ventures during the 2017 ICO wave. This distinction reflects deliberate governmental strategy, Weber believes.
"Switzerland actively pursues a blockchain-friendly reputation. This is clearly a conscious policy objective," he concluded.
