Bern, 22.03.2019 - In its consultation, the Federal Council intends to increase legal certainty with regard to Distributed Ledger Technology (DLT) and limit the risks of abuse. At the same time, the framework conditions for DLT in the financial sector are to be improved.
According to the report adopted in December 2018, Switzerland’s current legal framework is well suited to dealing with new technologies, including DLT, according to the Federal Council. However, there is still a need for action at certain points.
The following adjustments will therefore be proposed in the consultation process:
- “In the Swiss Code of Obligations, the possibility of an electronic registration of rights that can guarantee the functions of negotiable securities is to be created. This is intended to increase legal certainty in the transfer of DLT-based assets.
- In the Federal Law on Debt Collection and Bankruptcy, the segregation of cryptobased assets in the event of bankruptcy is to be expressly regulated, also to increase legal certainty.
- In financial market infrastructure law, a new authorisation category for so-called “DLT trading facilities” is to be created. These are intended to be able to offer regulated financial market players and private customers services in the areas of trading, clearing, settlement and custody with DLT-based assets.
- Finally, it should also be possible in future to obtain a licence to operate an organised trading facility as a securities firm. This requires an adaptation of the future Financial Institutions Act.”
The area of combating money laundering is not covered in the consultation draft, but in the planned amendment of the Money Laundering Ordinance as part of the ongoing revision of the Money Laundering Act.