The Federal Council of Switzerland adopted the dispatch on the adaptation of federal law to developments in distributed ledger technology (DLT). This federal legislation, which is designed as a blanket framework, proposes specific amendments to nine federal acts, covering both civil law and financial market law. Parliament will probably examine the proposal for the first time in early 2020. The proposal was aimed at increasing legal certainty, removing barriers for applications based on DLT and reducing the risk of abuse. The proposal was revised and refined in a number of areas.
In December 2018, the Federal Council published a report on the legal framework for blockchain and DLT in the financial sector. It emphasized that it wanted to create the best possible framework conditions so that Switzerland can establish itself and evolve as a leading, innovative and sustainable location for fintech and DLT companies. Moreover, it wanted to consistently combat abuses and ensure the integrity and good reputation of Switzerland as a financial center and business location. Among other things, the report showed that Switzerland's current legal framework was already well suited to dealing with new technologies, including DLT. Nevertheless, it also pointed out the need for action in certain areas, which is why the Federal Council already submitted a series of amendments to existing legislation for consultation in March 2019. However, it refrained from drawing up a specific technology act. Some 80 responses were received during the consultation process. All the participants welcomed the Federal Council's proposal in principle.
Related Links: Press Release
Keywords: Europe, Switzerland, Banking, DLT, Blockchain, Fintech, Swiss Federal Council
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