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- As the state of Switzerland enforced the new Blockchain Act, several changes took place in the crypto markets
- The act is said to be said to be enforced in two phases, one which was already made effective of February 1, 2021 another which is scheduled to be effective in August
- Hans Kuhn says that the enforcement of the Blockchain Act has made Switzerland one of the most innovative and progressive legalized jurisdiction
Once the assurity law’s tokens came into effect on February 1, 2021. A very firm and strict basis of legal actions have been set to exchange digital assets and token exchanges to tackle the threats posed to the digital currencies for laundering money, as per the Blockchain Act. The Blockchain Act was enforced on September 1, 2020.
With the act’s enforcement, the Swiss assembly’s legislators joined hands to keep up with their neighbouring Liechtensteinians. It was one of the first states to develop digitized currencies regulations. The act is planned to be applied in two different phases in this ongoing year. Firstly, it aimed at the companies’ law reforms and came into effect on February 1, 2021. The second phase is the upgradation of financial markets and will be enforced in August.
Pros of the Blockchain Act
Some vital processes have been laid out by the laws that include specific legal processes that state the cessation of digital assets in bankruptcy. The law also states the roles of digital assets platform of tradings and the legal positioning of the firm’s digital securities. As per Hans Kuhn, Switzerland blockchain would receive a head start over other competitors at a global level because of these legal entries into the blockchain.
As it is one of the major economies with a very well-established digital currency’s regulation framework, it will allow the companies to build more products that will offer more assurance. Hans Kuhn, a member of the board at SEBA, a digital banking platform also added that due to the DLT laws’ enforcement in full force, Switzerland is gradually reaffirming itself as one of the most innovative and progressive jurisdictions around the globe. It also supports the total issuance of digitalized securities based on the native blockchains.
Effects of The Enforcement of the law on the companies and brokers
Once the law’s announcement was made, the leading companies of Switzerland have started rushing to publicize their new products in the market before the newly set law takes a toll. On February 1, AG, a cryptocurrency broker announced that it had successfully received a license for securities house by FINMA, the watchdog. This license would allow AG to broaden its scope with respect to its products and its services.It will also be able to work with more of the regulated parties.
The founder and CEO of the Crypto Finance Group, Jan Brzezek added:
“Getting the securities house licence for our brokerage is a pivotal moment for us. It means that we will be able to offer our professional – and regulated – services to even more financial institutions, enabling them to enter this new asset class. The licence also recognises our team’s dedication and expertise.”
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
