Switzerland is positioning itself as a region where both Bitcoin and fintech will thrive over the coming years. The government is looking to ease off on fintech regulation, although they may create specific licensing requirements. According to official sources, this move is part of a ‘forward-thinking approach” in this era of digitization.
Less Strict Fintech Regulation Comes To Switzerland
Even though Switzerland seems to do its own thing in the financial sector, for the time being the country is acknowledging the potential of fintech itself. Innovation is always welcome, as it leads to more competition on the market. Consumers reap the benefits from new products and services, which usually come at a lower cost.
Sources close to the Swiss Federal Council state how a new strategy to support fintech startups is mandatory. First of all, there is a large debate over how money needs to be kept in settlement accounts. Doing so would help crowdfunding services in the country, as well as make the regulatory aspect slightly less cumbersome.
Speaking of regulation, the government is also looking to establish a sandbox environment for startups, allowing them to focus on innovation first, rather than regulation. This would also mean that these startups will not be monitored by the Swiss Financial Market Supervisory Authority during the early stages. They would, however, still have to comply with existing AML guidelines.
Last but not least, we may soon see a reduction in the number of entry barriers for fintech startups. To be more precise, companies dealing with digital and crypto currencies, such as Bitcoin, are often barred from actively participating in the fintech sector. Lowering these barriers seems to confirm further that Switzerland sees a lot of value in Bitcoin and consorts and is keeping a very open mind towards this new form of transacting value.
All things considered, these steps sound like a smart decision. Realizing them will be a different matter, though, despite the government’s being on board with the fintech part. They want to introduce a new “fintech license,” though, which would give startups this “special” status. It remains uncertain, however, what this license would entail exactly.
Switzerland is warming up to Bitcoin and fintech as of late. Several changes have been proposed, including a redefining of corporate governance rules for Swiss banks, as well as a streamlining of the regulatory framework. Things are looking positive, and it may only be a matter of time until Bitcoin gains mainstream status in the country.
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