Switzerland has ushered in a new era for the digital assets industry after the tokenized securities law took effect on February 1. Known as the Blockchain Act, it sets a firm legal basis for digital asset exchange and tokenization while tackling the threat of digital currency money laundering. The Blockchain Act was passed in September 2020, with the Swiss legislators striving to keep up with their neighbors Liechtenstein which was among the first to develop digital currency regulations.
The law will be implemented in two phases this year.
The Blockchain Act will be implemented in two phases this year. The first, which centers on company law reforms, took effect on February 1. Financial market upgrades will follow in August as part of the second phase. The law lays out some crucial processes, such as the legal process of seizure of digital assets in bankruptcy. It also outlines the role of digital currency trading platforms and the legal standing of digital securities. Commenting on the new blockchain law, Hans Kuhn stated that he believes it will give Swiss blockchain firms a leg up over other global competitors.
The regulatory framework will allow companies to build products with increased assurance.
Switzerland being one of the first major economies with a well-defined digital currency regulatory framework, will allow companies to build products with increased assurance. Kuhn, who is a board member at digital banking platform SEBA, added, “With the blockchain law coming into force, Switzerland reaffirms itself as one of the most progressive and innovative legal and regulatory jurisdictions around the world that now fully supports the issuance of digital securities on a native blockchain basis.” Swiss companies are already rushing to announce new products as the new law takes effect.