Blockchain in Switzerland - Legal Foundations for the Blockchain Industry
Preamble
When I think of Switzerland, only one phrase comes to my mind: "Tax Haven". When I talk about Blockchain I can only think of "Economic Freedom". But placing "Switzerland" and "Blockchain" in the same sentence, exploded my brain.
It's the perfect recipe, what we all dream of. Although I do not know to what extent it is beneficial for the Blockchain image. Since the fact that a nation with a tax regime where tax evasion is favored and that provides a total exemption or a very significant reduction in the payment of the main taxes, has always been a controversial and controversial issue, due to the fact that that in most cases it is considered an act of public immorality to want to hide the true amounts of money that is possessed and immediately associate that fact with an illicit activity.
Putting aside all this unfavorable scenario, the advantages become evident. Especially when we think that the government of that nation is taking measures to develop an entire legal framework that supports the implementation of Blockchain technology from the simplest commercial transactions to the payment of taxes.
Image Source
They Are Really Very Friendly and Positive Towards this Technology
There are currently two districts in Switzerland that have taken the adoption of this technology very seriously. In the city of Zug, a few kilometers from Zurich, is "Crypto Valley", where emerging companies and developers that operate and innovate in the world of blockchain and cryptography technologies have settled. There is also the city of Chiasso, in which in the last months and with the support of its mayor, 8 startups have chosen it to carry out their business and more negotiations are being carried out with other companies from Europe. The executive also affirms that he will consider the possibility of participating as a founding partner in the formation of a new non-profit foundation based in Chiasso, in which some of the leading exponents of this disruptive technology will participate.
The Swiss stock exchange also added to the cryptographic adoption with the creation of a Stock Exchange Exchange Product (ETP) that includes five cryptoactives (Bitcoin, VRP, Ether, Bitcoin cash (ABC) and Litecoin).
Image Source
Approach of The Swiss Government Towards Cryptography and Blockchain Technology
The Mayor of Zug, Dolfi Müller gave a signal of support to "Crypto Valley" when he declared the first open sale of Ether in 2014 free of taxes. In 2016, this city became the first city in the world to accept bitcoin as a means of payment of some public services, and currently offers its inhabitants the possibility of requesting an "electronic identity", based on blockchain technology.
The Swiss Government announced in 2016 licenses for techno-financial companies, but with limited requirements for emerging companies.
"The lack of regulation is a defining factor of cryptocurrency. After all, a major tenet of cryptocurrency is DECENTRALIZATION. How then can a currency be decentralized if it still has to go through an authority? Compromise may be good, but it negates the entire point of the movement."
Well, a court in Switzerland ruled the liquidation of a company that promoted the creation of farms for the cryptocurrency mining using green electricity for breach of the guidelines offered to its investors during the ICO. This decision set a precedent in terms of the formal liquidation of a company involved in an ICO, especially in a country like Switzerland, which is characterized by being crypto-friendly.
It seems to me excellent that the authorities take part in this kind of eventualities where investors are often left helpless due to the lack of a legal framework in the matter of cryptoactives.
Image Source
Switzerland Establishes the Legal Foundations for the Blockchain Industry
Governments around the world are facing a reality in which the available tools need to be updated in order to provide effective answers. Wars, terrorism, natural catastrophes, have always been the cause of world organization and consensus. But now they are presented with a new scenario: The Blockchain Technology. Specifically, ICOs (Initial Coin Offerings) have been placed at the center of the governmental agenda throughout and across the globe.
Each government reacts according to the criteria of its governors. For example, China adopted a total ban on ICOs and cryptocurrency exchanges.
Other governments choose to be more progressive and open to innovation. They recognize that they are facing something different that needs legislation in agreement and they assume the commitment to work for that.
This is how Switzerland chose the second option. But not with the intention of creating a new legal framework that allows the management of cryptoactive operations, but adapting its current legislation to incorporate elements that involve blockchain technology.
I think it's the smartest decision.
When we see the exponential increase in investment figures in recent years in Switzerland, everything points to the cryptoactive and blockchain.
The initiatives that are already underway in this country in terms of investment are very diverse, ranging from banks that accept financial resources from the exchange of cryptoactives, the commercialization of coffee, tourism, the electric power industry, universities that accept payment in cryptocurrencies. The levels of adoption are unimaginable.
Final Findings
There are several cities in the world that are moving towards the adoption of blockchain technology and the exchange of cryptoactives. Some with more advances than others. Perhaps due to the high level of legal precedents, more decisive decisions are not taken. But Switzerland has proven for many reasons, to be at the forefront of adoption.
Image Source
There are many cases that prove it. It is in Switzerland that a whole city received the news from its authorities of the creation of a registry for the digital identity service in the region based on blockchain and cryptographically protected. It is in Switzerland that a well-known operator of online banking services offers its customers a digital certificate to market Bitcoin, based on Artificial Intelligence. That allows their clients with the support of an automatic learning algorithm to make predictions regarding short-term performance, based on the interpretation of indicators.
For this and much more, I believe that Switzerland should be considered as an example to follow by the so-called "world powers" and direct actions that facilitate the lives of its citizens in the near future. As much as they resist, the adoption of blockchain technology will be inevitable.
Interesting links for more information:
http://www.swissinfo.ch
https://cryptovalley.swiss/
Please follow me in twitter: @juanmolina2021 (https://twitter.com/JuanMolina2021)
Hi @juanmolina,
Thanks a lot for this well researched article about crypto in Switzerland. Beeing a Swiss myself, I didn't know everything ;-).
It is true that Switzerland was a tax heaven for a long time but this is not so extreme anymore. It might still hide some fortunes of people from developping countries but for people from EU or USA it has become very difficult to hide their money in Swiss banks. In Switzerland when you hide money from the state you don't become a criminal. You might have to pay fines but you won't go to jail.
Since world war two, Switzerland has been very active in the banking sector and it is probably because of the tax evasion of people from all over the world that Switzerland has become as rich as it is today. The banks however are having a difficult time and the gouvernement realized that we had to stay competetive in the financial world to keep our status quo. That is why the governement considered the blockchain technology as very promising.
I think that it is true that Switzerland has a good approach to this new tech. Instead of forbidding everything, it tries to build a legal framework for it.
Among the population, Cryptocurrencies are quite popular. I know a lot of people who started to invest in cryptos in the last years. Also there are meetings where people come together to talk about cryptos. I just took part in one yesterday.
The fact that the Swiss gouvernment is favorable for Cryptocurrencies leads to a big advantage for the country. The start ups come together here and there is an accumulation of people who have a certain know how. This proximity of like minded people helps develop new ideas and new projects. With the security of knowing that the state is behind them, they can plan into the future. At the same time the autorities are learning with them and they can create a framework where everybody can strive. I'm quite proud of what my country is doing and I think that we will have soon a huge advantage over other countries in everything related to blockchain technology...
Hi dear @achim03.
Friend! Of course you should feel proud. You should also know that you are lucky to live in Switzerland.
What a pleasure to meet you I did not know you were from there.
I will be closer to your publications. You have a lot of fresh material to share with all of us.
Thank you for reading. Juan.
Swiss government was always more progressive in lot of ways. And this move they did, does not even surprise me. And interesting fact is that, while China is banning cryptos, many other countries are implementing them into the system. In Venezuela (because of sky-rocket inflation) they implemented Dash as second currency. And people around the world are using cryptos every day in bigger and bigger numbers. Switzerland just made the next move with legalising businesses and individuals using crypto currencies, and also they put lot of money into artificial intelligence.
Hello dear @worldfinances
Certainly the advances of Switzerland in blockchain are unprecedented.
I am very struck by the fact that banks are joining this campaign. Obviously it was expected by the volume of waves that this involves.
But I wonder: will someone turn to a bank when you can have your cryptoactives safeguarded? or in case the banks will make loans and financing with cryptocurrency?
Thanks for reading and reviewing. Juan
If they will not get into your privacy or change the main code or implement their own crypto bank...or anything like that, than this can be only positive for region, country and everyone, living there. But banks were always very sneaky about such things. But as I know, Swiss banks were always pretty straight forwarded. Meaning...if they can make additional money out of that (with loans), why would they scare people by making their own central crypto banks or write bunch of laws, making them harder to get anyone to take their loan... In short, business as usual. They are just more open minded. But it can all change by tomorrow. So, this is like....just test it at first or get really good answer by someone who's got experience there, before you take any other step.
Thank you for complementing your valuable previous comment.
I think the following link could give us valuable information about it.
I wanted to share it with you.
https://www.swissinfo.ch/eng/security-tokens_global-stock-exchanges-gear-up-for-anticipated-cryptoasset-bonanza/44607830
Thank you for your support of my work.
Venezuela needs you.
Would you excuse me for asking you a favor?
@STEEMCHURCH is a community that makes very valuable charity works in VENEZUELA (You can visit their blog and see what they do).
@steemchurch needs everyone's support to win a delegation of 20K SP, the competition is really fierce in that contest and a moment ago we were right behind SteemitBloggers:
! [x.png] ()
Maybe you could ask your friends if they would not mind supporting our little initiative.
I would be very grateful :)
Link to the contest:
https://dpoll.xyz/detail/@theycallmedan/which-steem-project-should-i-delegate-20k-steempower-to-for-1-year/?rep=33&sp=3&age=30&post_count= 10 & stake_based = 0
(VOTE FOR STEEMCHURCH)
Thanks from my heart.
Your friend: Juan.
Great article @juanmolina!
Switzerland is indeed amazing country. I am fascinated by the fact that they managed to stay neutral through World War II, although they have been in the center of conflict. Additionally, they are able to hide whole population in fallout shelters, which makes them definitely an unusual country.
They approach to Bitcoin is also extraordinary. I wish my government had similar, but they seem not to even understand the concept of cryptocurrencies, not to talk about any massive adoption.
Hello appreciated @neavvy.
I appreciate that you have some time to see my publications. Thank you.
Well, the longing is the same. I wish the government of my country had some initiative in that sense.
Currently it is promoting a cryptocurrency called "petro" but it really seems not accessible to the general public. It's like a ghost coin that only representatives of the national administration can see.
Yours, Juan.
Hi @jaunmolina,
Very nice and detailed article. I do believe we disagree on the issue, but I liked reading the information.
I think it is great that Switzerland is proactive in supporting cryptocurrency adoption. However, I do have to say that decentralization is key, which means that the blockchain needs to stand alone separate of any company. This way, while the company can be hurt the blockchain is not, and this will take the incentives away from governments to put pressure on companies.
Ultimately, when people create a software they should just take an early share as their profits and give the network to the world to use however they want to use it. This allows for true decentralization, and without that decentralization the blockchain is nothing more than a buzz word.
In fact, I would go so far as to say that when a blockchain claims to be decentralized but is not, it constitutes a scam. Private blockchains make no sense, that's just 1000x less efficient database with a coin attached to it...
All that said, what is great about government regulations like the SEC is that when they hunt down ICOs that are not decentralized it scares all the projects. This benefits everyone, because it will make people develop truly decentralized systems so that they don't suffer the wrath of the SEC. Ironically, the SEC's aggression against centralized projects is enforcing that projects are in fact decentralized, thus insuring a more decentralized future.
Hello appreciated @hobo.media.
Currently, platforms are being developed that, despite operating on a blockchain layer, have a certain level of autonomy since they handle the operations on their own nodes. This gives them the necessary authority to implement a governance system according to their policies. But all generated transactions are stored blockchain. That is, they remain decentralized.
A kind of hybrid model.
So government authorities could establish rules of the game for companies that participate.
I believe that the basis of success will lie in the consensus achieved. The investment is convenient for Switzerland, but they should not frighten the supporters.
Thanks for you valuable comment.
Yours, Juan.
Thank you for your support of my work.
Venezuela needs you.
Would you excuse me for asking you a favor?
@STEEMCHURCH is a community that makes very valuable charity works in VENEZUELA (You can visit their blog and see what they do).
@steemchurch needs everyone's support to win a delegation of 20K SP, the competition is really fierce in that contest and a moment ago we were right behind SteemitBloggers:
! [x.png] ()
Maybe you could ask your friends if they would not mind supporting our little initiative.
I would be very grateful :)
Link to the contest:
https://dpoll.xyz/detail/@theycallmedan/which-steem-project-should-i-delegate-20k-steempower-to-for-1-year/?rep=33&sp=3&age=30&post_count= 10 & stake_based = 0
(VOTE FOR STEEMCHURCH)
Thanks from my heart.
Your friend: Juan.
Hi @juanmolina,
I have been fortunate to have close ties with Switzerland both professionally and personally. Every time I travel back to this beautiful country. I keep falling in love with it and its people over and over again.
Yes it is true that Switzerland has been a financial hub that is both efficient and trustworthy for a very long period of time.
Now that it is laying down the foundation of transforming itself into a crypto hub it is certainly leading by example.
I am confident that this transformation would be carried out with the same Swiss prepossession that the world is all too familiar with.
The current crypto transformation is what would be registered documented to be taught through text books and case studies.
Switzerland would lead the way in this sphere. What remains to be seen is how quickly the rest of the world follows the path laid out by Switzerland.
Thank you for your support of my work.
Venezuela needs you.
Would you excuse me for asking you a favor?
@STEEMCHURCH is a community that makes very valuable charity works in VENEZUELA (You can visit their blog and see what they do).
@steemchurch needs everyone's support to win a delegation of 20K SP, the competition is really fierce in that contest and a moment ago we were right behind SteemitBloggers:
! [x.png] ()
Maybe you could ask your friends if they would not mind supporting our little initiative.
I would be very grateful :)
Link to the contest:
https://dpoll.xyz/detail/@theycallmedan/which-steem-project-should-i-delegate-20k-steempower-to-for-1-year/?rep=33&sp=3&age=30&post_count= 10 & stake_based = 0
(VOTE FOR STEEMCHURCH)
Thanks from my heart.
Your friend: Juan.
Nicely researched content @juanmolina personally I did not follow the Davao Switzerland as closely as I normally would.
Yes blockchain technology has many excellent uses right now, push back from governments and banking fraternity was to be expected. Safety is an issue, not always as mentioned funding terrorists etc., since fiat currency was much the same with loopholes. Fundamentally I think "the powers that be" are scared of losing power, earnings, control at banking/government level.
When it comes to blockchain being used to register people, medical benefits, contract assets they are happy to allow development.
Switzerland (I stand to be corrected), were one of the first countries to install Bitcoin ATM's at railway stations making life easier to transact in more than just fiat currency.
Living in a 3rd world country, personally I think crypto currency could benefit many, however the majority will require educating. Once a government gives the go ahead most would be happy to try using crypto, prior to that happening majority of citizens are skeptical and scared (due to bad media), again due to ignorance.
Regards appreciated @joanstewart.
Thanks for that valuable comment.
Precisely the education to facilitate the adoption and to diminish the indices of rejection is extremely important matter. I think this would not be an obstacle in Switzerland.
I also live in a sub-developed country. We can not put it in perspective with our population. Nothing is further from reality.
Switzerland already has advances in this area. There are complete counties that have already adopted blockchain in their daily life. It is only a matter of time before it is adopted throughout the territory.
Thanks for the reading. Juan.
Thank you for your support of my work.
Venezuela needs you.
Would you excuse me for asking you a favor?
@STEEMCHURCH is a community that makes very valuable charity works in VENEZUELA (You can visit their blog and see what they do).
@steemchurch needs everyone's support to win a delegation of 20K SP, the competition is really fierce in that contest and a moment ago we were right behind SteemitBloggers:
! [x.png] ()
Maybe you could ask your friends if they would not mind supporting our little initiative.
I would be very grateful :)
Link to the contest:
https://dpoll.xyz/detail/@theycallmedan/which-steem-project-should-i-delegate-20k-steempower-to-for-1-year/?rep=33&sp=3&age=30&post_count= 10 & stake_based = 0
(VOTE FOR STEEMCHURCH)
Thanks from my heart.
Your friend: Juan.
Hi Juan, have voted on @steemitbloggers for this one already, good luck in your venture.
Another passive earnings site that may eventually help charities and others - I am placing my link here since it is by invitation only, I will gladly add the USD$ 0.20 (or 20 cents) to get you onto Level 1 should you decide to signup, followed by $0.40 for you to purchase two more packages. Please take a look, nothing in life is guaranteed it is on hope and faith we trust in others.... Direct Form Link: https://www.dailyfreedomchallenge.com/join.php?r=joanstewart
How to use the system =
Daily Freedom Challenge Info Videos
English -
Spanish -
oh thanks friend!
I´ll try. I Promise it.
Hi. @juanmolina
Wow I tell you in all sincerity to read this I cause a lot of laughter I think my brain also exploded
In the subject that I dictate in the university of governmental accounting.
I always explain to students that governments are there to satisfy the basic and common needs of the society to which that state owes its economy.
I believe and I think that despite all the freedoms that country can have within its economy if you look closely at its society and its people are not in helpless, unlike what happens in Latin American countries with one exception that can be called the coast rich in terms of its GDP, of course, and I would give it as an example, since it is the only country in Latin America that offers good opportunities for technology companies to establish their offices there, but that is another matter.
As for Switzerland, its leaders are offering a better quality of life since, as you mention, there are almost no taxes or very few taxes applied by that country.
Although all this can be translated into something very common and speaks of the supply and demand that we can translate into less taxes and more investment, so that country where you want to cease him is playing to win win.
And as far as I can see, he is achieving something that will mark the future of the whole world.
I have a friend in common who is soon to move to that country, it means that he is on the winning move.
Regards appreciated @lanzjoseg.
I appreciate your valuable comment.
Governments should do the only thing that corresponds to them: give welfare to their population.
But we know that in most cases it is not like that.
I believe that diversifying the ways of acting is the key to success. This applies individually as well.
The most important from my point of view is the fact that the legal framework of a nation is modified to achieve an end. This indicates a great commitment.
Thanks for reading. Juan.
Hi @crypto.piotr thanks for share information about post @juanmolina and this post I share to twitter @ziapase
Hello appreciated @ziapase.
Thanks for promoting my post. All positive efforts are of great value.
Thanks for reading and reviewing. Juan
Thank you for your support of my work.
Venezuela needs you.
Would you excuse me for asking you a favor?
@STEEMCHURCH is a community that makes very valuable charity works in VENEZUELA (You can visit their blog and see what they do).
@steemchurch needs everyone's support to win a delegation of 20K SP, the competition is really fierce in that contest and a moment ago we were right behind SteemitBloggers:
! [x.png] ()
Maybe you could ask your friends if they would not mind supporting our little initiative.
I would be very grateful :)
Link to the contest:
https://dpoll.xyz/detail/@theycallmedan/which-steem-project-should-i-delegate-20k-steempower-to-for-1-year/?rep=33&sp=3&age=30&post_count= 10 & stake_based = 0
(VOTE FOR STEEMCHURCH)
Thanks from my heart.
Your friend: Juan.
Upvoted, Resteemed and Followed
Why?
Because of great content, always deserve it
@crypto.piotr recommend me to read your content
Thanks, @crypto.piotr for your memo
Thank you very much @whatsontrend.
Thanks to @crypto.piotr for pointing me to this post. Amazingly nice post. I am in love with Swiss. And your presentation. I went to Cryptovalley.swiss
Keep Steemin!
Liked Voted and Resteemed
Thank you dear @sarez.
I appreciate it a lot.