Crypto-friendly Switzerland Outclasses U.S. as Facebook Libra’s Regulator
July 21, 2019 @ 13:40 UTC
Switzerland crypto laws have appealed to blockchain enthusiasts for years. Facebook’s head of blockchain, David Marcus, is no exception. He released a statement announcing that he expects the new coin to be governed by Swiss law.
Why did Libra choose to headquarter in Switzerland? What are the main differences between Switzerland’s crypto laws and the United States?
One of the main differences is in attitude. While the United States is lurching forward with resistance, caution and occasional acceptance, Switzerland’s crypto stance is safe, but welcoming and open. In March, the Federal Assembly, the legislative branch of the Swiss government, voted in favor of a motion to receive instruction on how to apply current laws toward crypto.
The blockchain community views Switzerland as an embassy of sorts. The iconic town of Zug birthed the world’s second-largest cryptocurrency, Ethereum. With over 700 blockchain-related companies having a presence there, the town of 30,000 people has been dubbed “Crypto Valley.” As the U.S. looks to stall the development of Facebook’s Libra and House Democrats look to keep big tech out of finance, it makes perfect sense that these companies will simply go where they’re wanted.
Leaders in Switzerland have taken a different approach. Swiss Federal President Ueli Maurer recently attended the CV Crypto Valley Summit, where he said the government “is constantly looking for ways to stay two steps ahead,” in blockchain regulation. He added that “our doors are always open” for any companies looking to approach the state. Like the U.S., Switzerland has decided to regulate digital currencies within the framework of their existing financial laws. By design, the Swiss government does not have consistent laws related to ICOs and cryptos. Rather, they choose to maintain flexibility to govern different types of currencies in different ways, on a case-by-case basis.
Crypto-friendly Switzerland Outclasses U.S. as Facebook Libra’s Regulator, CCN, Jul 21