Switzerland Sets Up Governmental Blockchain Department for Analysis and Regulatory Proposals

Given the rising popularity of the blockchain and cryptocurrency trend, more and more governments are setting up task forces and departments, meant to help develop regulatory framework that will regulate the crypto and blockchain markets, in their areas of jurisdiction.

According to recent reports, the Swiss government has recently created a new department, whose purpose will be to oversee and help develop regulatory framework, meant for blockchain technology and the initial coin offering (ICO) craze.

So far, it is expected that the Swiss Finance Minister alongside the Education Minister will be the main persons in charge with leading the blockchain taskforce. However, it seems like the government department will also include representatives from the industry, alongside with many other experts.

It is important to point out that the task force in question will work closely with the Secretariat for International Financial Matters, and they’ll start by closely examining the existing regulations and legislative frameworks that ICO firms and blockchain companies need to follow at this time. Later on, the group will identify areas that need immediate attention from authorities, and develop proposals which will then be sent to policy makers.

Schneider-Ammann, the Education Minister of Switzerland stated that: "[Blockchain is] becoming more important as a technology for many industries, not just crypto finance. [What is needed is liberal regulation], which opens opportunities for Switzerland's position while at the same time reducing risks."

Back in 2017, a regulatory guidance meant for ICOs was implemented by the Financial Market Supervisory Authority, also known as the FINMA. Its purpose back then, was to help determine whether regulatory provisions have been respected by ICOs. While no further information on the result of the study was shared, it is now clear that the government-backed blockchain taskforce is the next step for the project.

Based on everything that has been outlined so far, the newly-launched government department will likely not affect the digital currency community, but rather come up with regulatory guidelines, meant to help protect ICO investors, and customers of blockchain-based companies.