Regulation is always a double-edged blade. On the one hand, guidelines can help legalize new currencies and financial tools. At the same time, these rules can nip innovation in the bud at a very early stage. Switzerland wants to ease up on fintech regulation, which is excellent news for Bitcoin activity in the country.
New rules have been proposed by the Swiss government to encourage fintech startups in the country. By easing these regulatory guidelines, providers of financial technologies and services should have an easier time competing with one another. In return, this competitive landscape will benefit the Swiss consumer, which is of the utmost importance.
A Major Fintech Push By The Swiss Government
Similarly to other countries, Switzerland has not made life easy for fintech startups. Not that there are significant hurdles to overcome, but being fully compliant remains a daunting task. By lowering the barriers to entry, the Swiss Federal Council wants to spur innovation and improve the dynamic of domestic finance.
Although the draft for these new regulations has yet to be created, the government is hopeful they can shake up the Swiss banking sector. The country wanted to be among the leaders of fintech innovation. Achieving that goal means the government has to foster and nurture up-and-coming financial service providers.
Among the proposed changes is a deadline of 60 days for holding money in settlement accounts. This change will mainly affect startups turning to crowdfunding. Right now, it is possible for donors to withdraw funds after just seven days. A 60-day timeframe seems more appropriate for these types of business transactions.
But perhaps the biggest proposed change is the introduction of a new banking license. Fintech startups offering deposit services can apply for this permit, which is much easier to obtain compared to its traditional counterpart. It is likely Bitcoin exchanges will need to pay close attention to this new banking license moving forward. Companies not offering lending services will fall under this new category as of next year, by the look of things.
This news comes at an exciting time for Bitcoin in Switzerland. With the canton of Zug accepting Bitcoin payments for public services, things are looking rather positive. Additionally, several train ticket kiosks in the country will offer Bitcoin purchase options as well. Switzerland is on the path to embracing Bitcoin and fintech in the coming years.
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