Today, in news from Europe, Switzerland government is rapidly working towards giving cryptocurrencies such as bitcoin and other cryptos a legal status. The government is moving towards a well thought out regulatory framework for companies in the fintech space. The new rules are expected to go into effect from August.
Swiss Federal Council have said that amongst the initiatives launched today, there is a “sandbox” regulation that will help create an accommodative environment for startups. Exemption from authorization is allowed for firms accepting fewer than 1 million Swiss Francs. The council has clarified that depositors of these firms would not be protected by Switzerland’s deposit protection rules.
Swiss rail service SBB, business that work with cryptos and exchange startups in the country could face the implications of the outcome of this new legal framework around Bitcoin and cryptocurrency. For example, SBB began selling bitcoin through its ticket kiosks last year.
In the past couple of years Switzerland has become an exciting new location for fintech startups. Some of the country’s municipal bodies have moved to integrated blockchaIn technology in their operations. This move comes as South Korea moves towards legalizing cryptocurrency and is working to implement a framework soon.
BTCC Boss Bobby Lee Wants Bitcoin Regulated in China!
CEO of popular Chinese cryptocurrency exchange BTCC, Bobby Lee has told CNBC that cryptocurrencies such as Bitcoins must be regulated else they get out of hand as millions more adopt these new technologies.
Without regulations the high volatility, low liquidity and major swings in price will continue. PBOC, the central bank of China has stepped up its efforts to ensure that exchanges don’t violate any rules and ensure all basic anti-money laundering systems are in place.
"I think it's taking the lawmakers and regulators some time to wrap their minds around it, and to come up with the appropriate rules and laws to govern companies, how we do business, to govern individuals and how people conduct business online."
Bitcoin is a new currency that is being traded across the world and has become hugely popular in China. Bobby Lee even made a prediction that he expects Bitcoin to be valued around $5000 to $11000 by 2020. He expects the banks in China to pay attention to the changing environment in fintech and focus on developing the legal framework to ensure smooth continuity.
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