Swiss Federal Assembly Passes Instructions on Cryptocurrency Regulation

The Federal Assembly, the legislative body of the Swiss government, approved a motion requesting the Federal Council to adjust the existing legislation on the regulation of the cryptocurrencies. Coitelegraph auf Deutsch reported on the event's development on March 20th.

The intention of the motion brought by Liberal representative Giovanni Merlini is to instruct the Federal Council to adjust the existing provisions on the procedural instruments of judicial and administrative bodies so that they can also be applied to cryptocurrency. The Council approved a motion with 99 to 83 votes for and ten abstentions.

The aim of this initiative is to fill the identified shortcomings in protecting the cryptovalue of users of illegal activities such as extortion and money laundering. Legislation must define how to squeeze the risks associated with cryptocurrency and determine whether entities managing crypto-trading platforms should be aligned with financial intermediaries and therefore subject to financial markets supervision.

After approval, Swiss Finance Minister Ueli Maurer stated that the proposed development was beyond the scope of the draft regulation.

Last December, Maurer said that Switzerland, instead of a specific legal framework for blockchain or cryptocurrency, should change existing laws to allow the use of new technology and its financial application.

Earlier in March, the Basel Committee on Banking Supervision (BCBS), an international banker based in Switzerland, warned that strong growth in the cryptographic sector could potentially "cause concern for financial stability and increase bank risks." Cryptographic property is "insecure to use" as a means of exchanging or storing value - the two main functions of money - which means that the "cryptocurrency" is an inappropriate expression.


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