On Monday, February 1, the first part of the Swiss crypto and blockchain law became effective, Cointelegraph.com reports. The law finalized in September 2020 outlines the framework for blockchain and DLT (distributed ledger technology) in the country and is encouraging for blockchain companies. According to Lexology, the law aims to provide a legal framework for blockchain use to reduce barriers to its application.
A digital-asset finance company Sygnum has already taken advantage of the new blockchain law coming into effect. In partnership with Fine Wine Capital AG, Sygnum Bank has issued tokens representing fine wines on their platform. The companies can register and transfer the tokens freely under the new law.
Switzerland is known as one of the leading countries in adopting blockchain technologies. Back in September 2020, the region of Zug was considering the use of cryptocurrency for paying taxes. In particular, along with fiat currencies, the region was planning to allow payments in Bitcoin and Ether. Moreover, other regions seemed to support the initiative.
The country is actively supporting blockchain startups. For instance, Switzerland’s Crypto Valley Association supports startups and enterprises on the use of cryptographic technology and blockchain. Crypto Valley Conference, where industry leaders share information on technology, legal topics, and finance, also takes place in Switzerland.