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Swiss top financial regulator, FINMA, on 26th August granted securities and banking licenses to two blockchain firms in the country, the Sygnum AG and SEBA crypto.
However, it seems the blockchain companies will come under heavy scrutiny to keep the market properly sanitized. Switzerland is generally open to different kinds of methodologies in the financial market.
But it still wants to pay full attention to neoteric technologies, including blockchain technology.
The vulnerability and volatility of crypto coins are what the Swiss agency is hammering on.
The agency stresses that it is the responsibility of the Swiss agency to scrutinize all activities that pass through the crypto industry.
Opportunities in the crypto industry
Earlier today in a meeting, Swiss Federal Council noted the current challenges and opportunities linked with Stablecoins
Ever since then, Switzerland has been quite open to opportunities that abound in the financial market.
It has thrown its full weight on the growth of Blockchain technology in the country. However, It still wants to keep monitoring activities involving digital currencies like the Blockchain/DLC.
Last month, FINMA attested that it received a request from Libra to review how FINMA will treat the Libra project, including how the Swiss Supervisory law is going to handle the issuance of “stable coins.”
Then, FINMA revealed that the financial market infrastructure regulation usually handles the project of that nature.
However, FINMA has to approve a license on a payment system. The regulation will follow the international standards set based on the financial market infrastructure.
The condition also applies to the management of financial risk, including money laundering activities.
The Swiss federal council noted that the agency is constantly monitoring Stablecoin projects, with particular attention on their risks and associated opportunities.
But there are some reservations in certain areas, including data protection, monetary policy, terrorist financing, as well as money laundering.
Already, the Swiss federal council has pledged to change the stability and currency policy.
These changes will pass through supervisory authorities, central banks, and international cooperation between governments.
Switzerland will use the opportunity of the upcoming meeting of Bretton Woods institutions to discuss their willingness to support new technologies.
According to the Swiss agency, the meeting, which will also host G20finance ministers, is the perfect opportunity for such discussions.
The Swiss government is crypto-friendly but still strict about scrutinizing
The Swiss government, through the Swiss Federal Council, said that the government will always welcome any opportunity that will bring digital technology development to the country.
But it will not relent on its efforts to keep scrutinizing these developments like blockchain and other related technology.
It has reiterated the fact that despite their openness to these new technologies, the government will keep observing their activities to make sure that investors are not left completely vulnerable to the risks in the industry.