Switzerland Federal Assembly Accepts Following Virtual Currency Regulations

Switzerland Federal Assembly Accepts Following Virtual Currency Regulations
Switzerland Federal Assembly Accepts Following Virtual Currency Regulations

 

After a motion to make Federal council regularize virtual currencies, Federal Assembly located in Switzerland announced its agreement on them. 

The federal council’s source to make adaptations in the laws is the present rules, however, and Giovani Melini, a liberal public representative, was the pioneer to offer necessary instructions applicable in regularizing virtual currencies. Luckily, this agreement was under the approval of most of the legislators. The reason for this updated decision was the existence of opportunities for fraud and scam due to the obvious loopholes in this system, Melini remarks. Those few opponents’ excuses is the lack of sufficient elaboration about the manner of applying regulations to avoid the above-mentioned malicious acts.

According to Ueli Maurer, the finance minister of the country, approving this motion is not in the boundaries of regulations of the country and covers a wider scope.

This motion hopes that these steps can help better trace what takes place in money laundering, extortion, etc.  Before that, there had been some frequent updates in rules to make investors aware of some cryptocurrency investment schemes offered to them. The purpose was to avoid their stimulation by these suspicious plans. 

If you look at the cryptocurrencies atmosphere critically without any favoritism, you will notice that cryptocurrencies can be a good situation for abuse and other illicit activities, and this fact raises some worry for responsible agencies and organization engaged in financial affairs, as Basel Committee on Banking Supervision (BCBS) has lately concerned about financial risks in working with cryptocurrency too. It added that cryptocurrencies could not be assumed as the store of value like money and they lack necessary reliance and safety. 

These kinds of regulations and measures in straightening up the condition of these newly-grown currencies might be a step toward legalizing them and ensuring investors and other suspicious institutions to add them to their list of to-dos at least for the future. It means the preliminaries to consider them as the official means of financial transfers and transactions albeit securely with the minimum risk possible. 

Considering the fast development of cryptocurrencies all around the world and the difference in the legal system of the countries, it seems that such motions are going to become a necessity in the legal system of every country.