THE NEW REPORT OF THE FEDERAL COUNCIL ABOUT BLOCKCHAIN AND DLT TECHNOLOGIES

On 7th December 2018, the Federal Council issued a report in order to defire the blockchain and distributed register technologies (DLT) conditions.

The Swiss Government has gave a clear and positive signal addressed to the blockchain community, due to the presence of a favorable regulatory framework for business system based on DLT and blockchain.

In particular, the Federal Council indicated the relevant legal conditions and carried out a careful evaluation on sectors in which it is necessary to take actions. The report highlights a clear distinction between token categories: Native Utility Tokens, Counterparty Tokens and Ownership Tokens. The Native Utility Tokens are considered intangible goods and so not subject to transfer rules. In relation to Counterparty Tokens and Ownership Tokens it is necessary a regulatory intervention because they have similar characteristics to the traditional bonds.

Regarding the anti-money laundering rules, the Federal Council stated that many criptochurrencies activities are considerated as “financial intermediation” and are therefore subject to Anti-money laundering regulations and so it is recommended a specific intervention on Anti-money laundering legislation.

Awainting to the next official stances, it is possible affirm that Switzerland is a Country “DLT – Friendly” with the aim to let entrepreneurs develop their DLT business, without incurring  regulatory uncertainty or penalty.

Our staff is available for any clarification.