Swiss Federal Assembly, which is the legislative body of the national government, has a proved a motion presented by a number of legislators. The motion instructs the Federal Council to implement the existing cryptocurrency regulations.
New Cryptocurrency Regulations in Swiss
The report about the approval of the new cryptocurrency regulations made headlines yesterday, March 20 2019, and most people are of the idea that they will help streamline the industry. The motion was introduced to the federal assembly for discussion by Giovanni Merlini, the Liberal Assembly man.
The motion instructs the Federal Council to adapt the current provisions on procedural instruments of administrative and judicial authorities on cryptocurrencies. The motion was approved after garnering 99 to 83 votes in favour and 10 legislators were not present.
One of the main objectives of the motion is to see the gaps that often leave crypto investors and traders vulnerable to numerous risks such as money laundering and extortion online. The legislators who approved the motion stated that they are confident it will help stifle cryptocurrency related risks.
The motion will also ensure that companies that run cryptocurrency trading platforms are treated or categorized as financial intermediaries. This categorization means that they will now be fully subject to financial market supervision.
Shortly after the approval of the motion, Ueli Maurer, the current finance minister in the country said that the proposed developments exceed the scope of planned crypto regulations. It will be remembered that last year in December, the finance minister stated that instead of creating specific cryptocurrency or blockchain technology legal framework, the country should improve the existing laws to accommodate financial application of this new technology.
It is also important to note that Basel Committee on Banking Supervision (BCBS), an international banking authority based in Switzerland warned against the robust and unprecedented growth of the cryptocurrency industry. The committee stated that the growth could result in financial stability issues as well as double the current financial risks that banks have to deal with on a daily basis.
BCBS was also of the idea that cryptocurrencies or digital assets are unsafe to rely on as a medium of exchange or store of value due to their volatility. Read more cryptocurrency news here.