Swiss Crypto Laws Herald New Financial Era, Says Report
Switzerland’s financial landscape is set to witness a new era following the launch of the digital asset’s laws on February 1 2021. This is according to a financial report from top Swiss news platform swissinfo.ch in a report released today.
New Laws Place Spotlight on Crypto Industry
Switzerland passed the digital asset laws last year and is expected to be implemented in two phases. The first phase which pertains to company law reforms was launched on February 1 and will be followed by financial markets infrastructure regulations that will begin in August.
These laws are expected to herald the beginning of a fully regulated cryptocurrency and digital asset industry in Switzerland. The laws are comprehensive and cover extensive sectors within the crypto and digital asset sector. Crypto service providers are able to know where they stand and the risk involved in offering such services within the Swiss jurisdiction. It is expected that the new regulations will offer new benefits to the markets and could potentially lead to the introduction of new crypto-related financial products.
A Major Rush for Crypto Licenses
As expected, the new digital laws have created a major rush in the Swiss markets as financial companies have moved towards getting relevant licenses. Crypto Finance Group revealed today that it had received a securities house license from Swiss financial regulator FINMA. The license enables the brokerage to offer new digital securities including shares and other tokenized assets and collectibles.
Swiss banks SEBA and Sygnum are also making major moves and are among the forerunners, having received FINMA licenses in 2019. Sygnum recently tokenized a range of premium wines from Fine Wine Capital on its Desygnate blockchain platform that was launched last year. The Bank has also struck agreements to issue digital assets within the real estate and automobile industry.
SEBA meanwhile has been involved in the tokenization of shares. The Bank raised CHF20 million from investors last December and tokenized the share certificates into digital shares that can be traded on crypto exchanges. Apart from these three firms, other financial entities like the Swiss Digital Exchange (SDX), Bitcoin Suisse, Taurus, and Lykke have also applied for various licenses with FINMA. It will be interesting to see what effects the new laws have on the blockchain industry in the coming months.