Switzerland is known not only for chocolate, cheese, and watches but also for a stunning economy development and high quality of life. Moreover, it has been conducting research in advanced technologies, like blockchain, for example. This resulted in acknowledging Switzerland as a leading blockchain and crypto hub.
The Swiss General Assembly decided to follow the Japanese Parliament in crypto regulation and approved a motion to regulate cryptocurrency. Giovanni Merlini, a liberal Assemblyman, is going to instruct the Federal Council on how to adopt the existing legislation and avoid crypto risks for potential investors. The motion was approved with 99 to 83 votes in favor.
First of all, such motion is the first step to tackle money laundering, extortion, and criminal fraud. As a fiat currency, Swiss Franc, has strict regulations in the country, so that the government can prosecute the criminals and regulate money activity, then the only thing left is to regulate crypto, which is what the Federal Council did.
The Basel Committee on Banking Supervision (BCBS), one of the major banking authorities, stated that crypto could actually “raise financial stability concerns and increase risks faced by banks.” Moreover, it has criticized the basis of crypto technology calling it unreliable means of exchange.
Even though the banks adopted quite a negative attitude towards cryptocurrency, the government tries to implement it in everyday life.
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