What was the Swiss Way to Regulate Cryptocurrencies and Blockchain Assets in 2021?
In Switzerland, distributed ledger technology is increasingly used in various industries, both experimentally and practically.
In 2021, the Swiss public sector constantly monitored and supported blockchain advancements, and specific public organizations had already implemented blockchain-based solutions.
Some organizations now regard cryptocurrency as non-sustainable and incompatible due to the high energy consumption of certain blockchain technologies. Against this context, projects that use low-energy technology are getting popular.
The blockchain industry increasingly seems to be dominated by more established initiatives, supported or started by well-known financial institutions and technological firms. Regulation is more commonly accepted and embraced by the new wave of blockchain start-ups in the financial sector.
In 2021 several regulations became effective, such as the following: Federal Act on the Adaptation of Federal Law to Developments in the Technology of Distributed Electronic Registers (the "DLT Act") went into effect on August 1, 2021. The DLT Legislation is a framework act that amends some current Swiss federal statutes, including the civil securities law, financial regulation, banking law, and bankruptcy law.
The Swiss Fintech industry has changed dramatically in recent years, and it will continue to do so in 2022. Switzerland is a desirable location for financial entrepreneurs. There are now over 200 players online. The majority of innovative business models are centered on the financial market sector.
Based on a reasonably high level, Fintech market growth (value chain share) and expansion (spectrum of goods and services) have increased in Switzerland in recent years. On the other hand, the coronavirus epidemic has had an impact on investments in technology-driven startups. Nonetheless, Switzerland's conditions are expected to improve, and its regulations are full of assets and opportunities this new year 2022.