Breaking: How Switzerland Reinvented Itself As Crypto-Haven
Hey Stemmers,
Switzerland is enticing financial technology companies and startups to its already booming Crypto Valley by stripping down its regulations for services surrounding digital currencies and other financial services.The growth of financial technology, and the associated acceptance of its affiliates – such as Bitcoin and other cryptocurrencies – from State governments, has seen varying degrees of regulation from countries.However, it is Switzerland who is looking to lead the way in promoting the growth of this up-and-coming financial sector by applying a light touch to its rules and regulations for financial technology companies.In a statement made by Finance Minister Ueli Maurer, promises were made about re-evaluating banking legislation with the intention to allow smaller companies in financial technology to sidestep the red tape that is usually attached to larger banks.
Sandbox gameplay
The proposed idea for minimizing regulations in Switzerland, while still keeping companies in line with legislation, is to set up so-called ‘sandboxes’ where startups and smaller companies can experiment and innovate within controlled conditions.Companies that have accumulated less than $1 mln in third-party funds would be welcomed to test out their innovative financial technology ideas without the usual regulation surrounding finance and digital currency.Banking licenses are also being re-evaluated to allow the companies that are coming in at under $1 mln to obtain licenses for those who offer deposits, but not lending.Finally, the Swiss government also wants to encourage crowdfunding for these companies by raising the currently legislated time that donors can withdraw their donations from seven days to 60. This will offer much greater security of funding.
Good for fintech, good for Bitcoin
While these revised legislative changes are not aimed solely at digital currency, and Bitcoin for that matter, they encompass a large area of digital financial services that sweeps across cryptocurrencies at large.Blockchain technology and its decentralized cryptocurrency is a booming market that is attracting more and more startups and innovators that are driving the growth of this financial technology.No longer seen as purely a funding tool for dark web activities and the Silk Road, Bitcoin is attracting mainstream companies, especially in Switzerland, to grow Blockchain technology and digital currency services.Bitcoin and businesses utilizing Blockchain technologies, other digital currencies and related services are now being classified along with recognized financial technologies. Mobile telephone payment services, automated wealth management advice, price comparison apps, tailored social media groups and crowdfunding systems all fall under the same regulatory umbrella now.With governments tarring digital currencies with the same regulatory brush as they would innovative financial services, cryptocurrencies are being legitimized as well as encouraged to grow and innovate.Rather than shunning the innovation of digital money, the Swiss have embraced it and cleared its path to cut into volatile central bank controlled fiat currency markets, while also reducing fees and improving security on the technology.
Let me know your thought and what do you think about it!
Happy steeming,
Francesco
the source of this article were inspired here: http://fintechranking.com/2017/07/06/how-switzerland-reinvented-itself-as-cryptocurrency-haven/
It's a good place to be!
thanks man! As I remember you are also from in Ticino right?
Yes!
That will be good for Bitcoin and other Altcoins. Hopefully other countries will follow suit. Thanks for sharing
Thanks @mountrock! you are totally right! I think that south korea could be interested in that! Which country you think is the one driving the cryptos regulations? looking forward to read your future posts!
Not sure on that one pal. Followed ya
They want to be first in that race !
Smart !
And good for every one !
=]
This is right @insteadofmoney! i am looking forward how other countries willl react..
I'm applauding Switzerland for taking the lead in creating a crypto-friendly environment. I don´t expect any good from the EU in that field, so we (Europeans) have to rely on the brave Eidgenossen :-)
let s see @shaka! with this ICO standard and that USA is not embracing it it make me a bit scary! so many people could go in jail and i don't understand why, do you have a theory on that?
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Thank You - @blueorgy
thanks @blue! let me know what i can do for you then!
Really informative post, thanks for sharing and look forward to more!
Dear @h! i appreciate you comment! i am looking forward for your too then!
I like the content ! 100% upvoted from @chanthasam
thanks chanthasam for liking the content, anything in particular? looking forward to your future post then!
This is a far better written and more informative article on this topic than what I have read before and makes more sense of it. But no surprise that Swiss would be jumping onboard with crypto. Mind you, I some how think that the Swiss banks won't be too pleased about competition to their business model being encouraged.
you are right @leo ! so what is your thinking about swiss banks and competition exactly? looking forward to your answer!
Well, as you know, blockchain/cryptocurrency is revolutionising the finance industry (and others) and making their business model obsolete. Banks the world over, have already been very vocal about having cryptocurrencies "regulated", meaning bound up in convoluted laws, registration fees and most importantly taxes. This is how innovation is stiffled, killing off any competition from disruptive technologies or business models.
A great comparison is renewable energy. In the beginning governments actively funded development and installation of renewables. Until, renewables became so efficient and cost effective that they became a serious viable option for energy production. Now in many parts of the world, you are penalised for producing your own energy, because the incumbent energy producers, coal, nuclear and others have been made obsolete, and loosing money. They then use the accumulated money and influence they have, to have politicians amend legislation to their benefit and to the detriment of the competing options.
Meanwhile, you don't have to look far, to see that various banks and governments are developing their own versions of blockchain/crypto, that will be centralised and therefore remain under their control, thus maintaining their status quo. All other options will be then "outlawed".
But that is not the end of the story. There will be adaption to these attempts to "take over" crypto. And that is another entire discussion thread.
I love Switzerland been there a couple times good food nice people and always cool in terms of finance. I am not surprised that Switzerland is booming as a crypto country they have always been very open for new tech and finance. Great post keep it up buddy.
great that you like and think that! would love to know how is the status in your country @danyelk!
In Mauritius the people have no idea about blockchain and cryptos maybe just a few so I think they are far behind but in Germany where I am from and soon going back after 4 years there is a lot going on in terms of crypto and blockchain. I am from Berlin and yesterday I did an article about Mymoria a Berlin based company who offers its customers to organize a funeral online live stream it and you can pay with Bitcoin.