The Federal Council regards the legal framework in Switzerland as intact for Blockchain / DLT. Therefore, there is no own law, but only adjustments to the existing
At the meeting on November 27, the Federal Council published its new template for the framework conditions for Blockchain / DLT. In terms of content, it continues where he ended up on the topic in the last round: The further improvement of the framework conditions for Blockchain / DLT.
The template roughly follows three goals:
- Increasing legal certainty
- Elimination of hurdles for applications of technology
- Limitation of abuse risks
Already at the end of last year, the Swiss Federal Council expressed itself positively and in a forward-looking manner. The framework conditions, which at that time were already classified as "good", need to be further improved. He emphasized that he wanted to create the best possible framework conditions so that Switzerland could establish and develop further as a leading, innovative and sustainable location for Fintech and DLT companies. New is the issue of abuse control. Because with increasing attractiveness of the market also increases the abuse and illegal activities.
Another point to which the Federal Council explicitly refers: Ensuring the integrity as well as the good reputation of Switzerland as a financial and business center. Here the global discussions around the planned digital currency Libra of Facebook seem. Switzerland has become more prominent here than the Swiss government have been enjoying it.
The report shows that the legal framework in Switzerland is already well suited today to deal with new technologies including DLT. Therefore, the Federal Council refrains from creating its own specific technology law. Even though there is a need for specific action. The submission received around 80 comments. In principle, the participants welcomed the proposals of the Federal Council.
The Federal Council has now adopted the Federal Law on Adaptation of Federal Law to Developments in Distributed Electronic Register Technology. Due to suggestions from the consultation, the submission has been revised and further developed in various points. The federal law, which was designed as a mantle decree, proposes punctual adjustments in nine federal laws, both in civil law and in financial market law. Parliament is expected to address the bill for the first time in early 2020.
The Federal Council currently sees no need to fundamentally adapt the legal framework or to introduce a comprehensive, specific law because of a specific technology that is still undergoing rapid development. The Swiss legal framework already offers a lot of flexibility and possibilities today. However, there are individual areas of law in which targeted adjustments are imposed to increase legal certainty, remove hurdles for DLT or blockchain-based applications, and limit new risks.
On behalf of the Swiss Federal Council
The Federal President: Ueli Maurer and The Federal Chancellor: Walter Thurnherr