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Authorities in Switzerland are encouraging the crypto sector

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on Jul 1, 2020
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  • Swiss authorities have decided to welcome crypto and blockchain startups by reducing the legal barrier.
  • Some of the laws were considered too cumbersome, which the government decided to change.
  • However, the country also decided not to change the tax laws, which are considered quite favorable.

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The crypto industry would be in very bad shape if every government were to treat it like China, Russia, or even the US. Fortunately, there are jurisdictions that have recognized the potential of crypto and blockchain, and they actually encourage and support new developments.

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Switzerland is an excellent example of this, as its authorities recently invited blockchain startups to set up shop. The country came up with a new list of laws that would reduce entry barriers’ legal requirements. Meanwhile, the country’s tax laws, which are considered rather favorable, remain untouched.

Swiss authorities saw old laws as cumbersome

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The Swiss National Council passed the mentioned legislative package unanimously. The move impacted around a dozen financial laws, bringing favorable changes that would encourage new firms to set up shop and start operating from the country.

The laws were passed on June 17th, while two days later, on June 19th, the Federal Council agreed with the Department of Finance that there is no need to make changes in regard to tax laws.

The country has been a blockchain startup hub for a long time now, and it seems determined to keep things this way for a long time to come.

Zug was a very popular location for crypto-related projects, particularly back when the ICO trend skyrocketed. Of course, ICOs are in the past now, but Zug’s and Swiss popularity, in general, remain as strong as ever.

What do the new laws change?

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As for the new laws, Switzerland found them to be too cumbersome, especially those in regard to the transfer of securities.

All such transfers have to be done in writing, which is slow and outdated. The changes will make the process much easier and better.

There were also changes made to bankruptcy laws, that would let owners appeal to authorities if they wanted to reclaim an asset.

Then, there are eight provisions that dictate how digital ledger technology providers and trading platforms can get the necessary licenses.

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