Swiss Parliament approves new DLT Regulations notably for crypto-based assets

The New Swiss Blockchain DLT Laws have been approved by the Swiss Parliament on 25 September 2020. Finalised last week, laws are expected to come into effect in early 2021:

What is important to know?

  • A specific category of tokenised rights named “Uncertificated Register Securities” regarding security token issuers;
  • A specific new licence category for DLT trading facilities (aka. crypto exchanges);
  • A clear framework for crypto-based asset custody provider
  • Small crypto exchanges may have facilitations;
  • Fully decentralised platforms will not benefit from the new DLT Trading Facilities license;
  • Crypto exchanges only for discretionary multilateral and bilateral trading of tokens with securities quality do not necessarily require this license;
  • Payment tokens issuers and decentralised trading platforms will be subject to Swiss AML law
  • The Bankruptcy Law related to crypto-based assets creates a legal framework for segregating digital assets from third-party custodians in case of bankruptcy proceedings against them.
  • The DLT law will also amend the Swiss Financial Services Act, Swiss Anti Money Laundering Law, Banking Law/FinTech License, Organised Trading Facilities and the Swiss Stock Corporation Law.

To dive into details: