Switzerland introduced the Blockchain Act mandate and it covers the groundwork on regulations regarding digital asset exchanges on the Blockchain. This include tokenization, cryptocurrency and tradable digital assets.
Originally, the Blockchain Act saw a resolution as a law last year in 2020, and it took effect 1st of February 2021. As reported, market intricacies basing on regulation will also take effect on the 1st of August this year. The law was passed as the Swiss government is addressing the disruption that digitized assets bring to the market and the whole financial industry.
Some of the stern guidance on the Blockchain Act include regulations on digital asset seizure / forfeiture on instances of bankruptcy. The act also covers the role of which digital trading platforms will play and definitions on digital securities.
What Does this Mean for Swiss Blockchain Industry?
With clear regulations in place, Swiss Blockchain companies can comply with regulations as they enable further market advances on digital asset trading, decentralized exchanges and services that run on Blockchain’s distributed ledger architecture. As mutual interest are fostered with mutual understanding, the market is ripe with innovation.
- More securities to be registered under patented trade leading to more venture basing on investors
- Open up the financial market for further decentralization with Blockchain technology enabling transformation
- With Blockchain transformation, finance and trade could save billions annually from Blockchain’s unprecedented efficiency
- Further improve open-ended trading through transparency and zero-trust protocols operating to safe guard trading.
- Grow tokenization for asset trading as securities compared to the traditional bonds and securities
- Enable more services under fintech and investech to prosper
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