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New Swiss laws provide solid ground for blockchain and crypto

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Swiss parliamentarians on Thursday passed a new set of finance and corporate law amendments that recognize the blockchain and cryptocurrency industry.

As per a Swiss Info report, the government has amended several laws ranging from company bankruptcy to securities trading. 

The new set of laws define the legalities of exchanging digital securities and also the legal process of reclaiming digital assets from companies that go bankrupt. It further defines the legal requirements for running cryptocurrency trading exchanges such that it may mitigate the risks of money laundering using cryptos.

These amendments come after the members of the House of Representatives passed the “Blockchain Act” without any opposition in the summer of 2020

It is likely that the new form of the existing laws will come into effect early next year. With that, the blockchain and cryptocurrency industry and decentralized finance are expected to gain a massive boost in Switzerland.

At present, Switzerland is home to more than 900 blockchain and cryptocurrency companies, including Facebook’s Libra, that employ approximately 4,700 people. 

The European nation, mostly known for its beautiful alpine landscapes and luxury goods, has been a major player in the world of banking and finance. It has also been quick to adopt blockchain and cryptocurrency and has since supported both existing and new companies to experiment with the technology.

Alongside the government trying to push blockchain and cryptocurrency innovation, many public and private sector companies in Switzerland are also experimenting with this technology. 

Private cryptocurrency banks have also sprang up in Switzerland. In 2019, Sygnum and Seba Crypto AG became the first cryptocurrency banks in the country after receiving a Swiss banking license from the Swiss Financial Market Supervisory Authority.



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New York authorizes first Yen stablecoin operator in the US

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New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.