Regulation of virtual currency in Switzerland in 2020

2. Reason: with the rapid development of information technology, real money is far from meeting people's demand for capital flow. If there are enough people to recognize the value of a virtual currency, it may become a substitute unit of material exchange, and the existence of virtual currency will inevitably cause another upsurge in the financial sector
in view of the possible risks of virtual currency, many international organizations and central banks have responded publicly to the supervision of virtual currency system. These responses can be roughly divided into four categories: warning and risk warning, supervision and registration permission, legislative norms, and explicit prohibition
(1) warning and risk warning
some central banks and regulators have issued risk warnings against the special currency and virtual currency system. The federal financial regulatory authority of Germany, the Bank of France, the central banks of the Netherlands and Belgium have issued public warnings against the possible money laundering and terrorist financing caused by the use of bitcoin. In the report released at the end of 2013, the European Banking authority (EBA) warned consumers of many risks of virtual currency, such as exchange loss, e-wallet theft, unprotected payment, price fluctuation and so on. Although Spain did not have a similar risk warning, it issued a timely information announcement related to virtual currency
(2) supervision and registration license
generally speaking, international organizations believe that the supervision of virtual currency should find a balance between risk prevention and innovation promotion. Since 2012, Sweden has required transactions related to virtual currency to be registered with financial regulators. Other countries pay attention to qualification supervision, so as to make it indirectly meet the requirements of prudential supervision. In other countries, the regulation mainly focuses on the business model of virtual currency transaction. The financial prudential regulatory authority of France regards the provision of bitcoin circulation and trading services and the act of earning funds in the process as a payment service and requires the authorization of the government. In addition, some countries focus on the intermediary institutions related to virtual currency. The German federal financial regulatory agency and Danish regulators believe that the provision of intermediary services for virtual currency needs to be authorized< (3) legislative norms
at present, some countries have proposed legislation to regulate virtual currency transactions. Canada plans to legislate to allow the government to supervise the transaction of bitcoin, and to include the transaction of more than US $10000 into the scope of suspicious supervision. The United States hopes to adjust the relevant legal structure should be compared with the development of the special currency. In order to make the Bank Secrecy Act (BSA) applicable in the context of network, the financial crime enforcement network (FinCEN) of the U.S. Department of the Treasury issued the explanatory guidance on the behavior and subject definition of private generation, holding, distribution, trading, acceptance and transmission of virtual currency in 2013. The European central bank stressed that it should strengthen international cooperation under the existing legal framework, and regulate virtual currency from the European and global level under the existing legal framework. More countries believe that bitcoin is not a currency in circulation, has no legal status, and does not meet the definition of financial instruments, such as Finland, Sweden, Malaysia and Indonesia
(4) it is forbidden
in some countries, bitcoin related transactions are prohibited. In December 2013, the people's Bank of China banned financial institutions from trading in bitcoin, which was subsequently extended to payment service providers. The central banks of Thailand and Indonesia share the same attitude. The circulation of anonymous internet currency (including bitcoin) is prohibited by the Russian judicial inspection department as a substitute for currency. The Central Bank of Russia has earlier included the provision of bitcoin services in the scope of suspicious transaction monitoring. The U.S. Securities and Exchange Commission (SEC) has banned the issue of unregistered shares in exchange for bitcoin, and unregistered online securities trading activities in virtual currency.

3.

In 2020, the state's view on virtual currencies such as radar currency and bitcoin is to strengthen supervision and guard against derivative risks of virtual currency

in April 2020, the teleconference on the special rectification of Internet Finance and Internet lending risks held in China indicated that we should strengthen the monitoring of new risks in other fields, such as Internet asset management, virtual currency speculation, illegal foreign exchange trading, etc., establish a mechanism for rapid study, determination, disposition and strike, and always maintain a high-pressure situation to prevent recurrence

on May 1, 2020, the amendments to Japan's "capital settlement law" and "financial instruments and transactions law" officially came into effect to strengthen the supervision of users' funds of virtual currency exchanges and prevent fraud, theft and money laundering. Japan's move is representative, which shows that strengthening the supervision of virtual currency has become the consensus of major countries in the world

All governments have been keeping a high degree of vigilance against all kinds of risks that may be derived from the application of virtual currency, and find out the risk base of virtual currency through investigation, research and cooperation, so as to have a definite target in the regulatory action

at present, the regulatory directions of various countries mainly include clarifying the rules of virtual currency payment services, protecting the data security of consumers, regulating illegal financing activities, combating terrorist support, and strengthening the prior and in-process supervision of virtual currency through the promulgation of laws and regulations and regulatory guidelines

in March 2018, the British government set up the virtual currency task force to closely investigate and study the financial crimes, market integrity risks and financial stability risks that may be caused by virtual currency, and timely incorporate them into the regulatory system. In January 2019, Singapore passed the payment services act to regulate Singapore's virtual currency payment system and payment service providers

At the same time, the US House of Representatives passed the financial technology protection act, which will set up an independent financial technology working group to conct an independent investigation on organizations and personnel who use virtual currency to engage in illegal financing and terrorist activities

in March 2020, the South Korean Congress passed the amendment to the specific financial transaction information act, which requires the South Korean virtual currency exchange to perform the anti money laundering obligation and register the real name of the transaction account, so as to strengthen the supervision of the transaction and deposit and withdrawal of the virtual currency account

4. The difference lies in the fact that some foreign countries are particularly strict in this kind of supervision, while others are particularly loose. In terms of domestic supervision, it is relatively perfect.

5. Hello, I'm glad to answer this question
the so-called digital currency financial license generally refers to the license to operate digital currency related business in a certain country or region. Having a digital currency finance license means that the institution can conct business and derivative services related to digital currency in the place where it is issued. Such as the establishment of digital currency exchange, payment, digital currency financial derivatives and so on. Swiss digital currency license is the most advantageous license with strict supervision over digital currency in the world< br /> 
first, Switzerland's financial supervision has its unique advantages: 1. Deep culture, confidentiality and legal certainty of privacy protection; 2
2. In the past 40 years, Switzerland's self regulatory system in the financial sector has made it one of the world's top quality financial centers
3. Generally speaking, Swiss regulators are in the leading position in global innovation, becoming the first country to issue regulations on financial technology, accept bitcoins and support the development of blockchain technology
4. The Swiss government maintains a liberal attitude towards digital currency, and the regulation of digital currency is more to prohibit its use for money laundering. Therefore, the digital currency used in the transfer instry is the focus of supervision< (2) business scope of Swiss digital currency company:
1. The company can provide digital currency transaction, digital currency bank and digital wallet services; Secondly, it can provide the following other services:
2. Conct credit transactions (related to consumer loans or mortgage loans, factoring business, commercial financing or financial leasing)
3. Provide services related to payment transactions, conct electronic transfer in the name of others, or issue or manage payment methods, such as credit cards and traveler's checks
4. Trading in the customer's own name, or in the form of currency, money market instruments, foreign exchange, precious metals, commodities, securities (stocks, stocks, value rights) and derivatives
5. Asset management
6. Holding or managing securities
7. Provide investment advice
8. Holding or managing securities
3: the conditions for the establishment of a Swiss digital currency dealer company:
1. The establishment of a Swiss legal person company with the registration category of SA / Ag / PLC
2. Swiss companies should have two Swiss residents as registered directors
3. Provide the asset security of 100000 Swiss francs, including 50000 Swiss francs, which need to be frozen when the company is registered, and then unfreeze after the company is registered. The company needs to keep a minimum deposit of CHF 100000 in its account
4
5. In addition to the directors, we need to employ about 2 employees
6. Open the corporate account of the company< Four: detailed rules for the registration of Swiss digital currency license:
establish a Swiss company, open a Swiss corporate account, rent a Swiss office, employ Swiss employees to submit the license application materials after renting the office:
after preparing the basic conditions for the establishment of the company, submit all the pre-trial materials to the Swiss monetary authority FINMA for review. This time is about 3-5 months
in total, the total processing time of Swiss digital currency is 7-10 months
in 2017, the Swiss government formulated a legal framework for fintech, including digital goods dealers and blockchain technology providers. The new regulation was passed on July 5, 2017 and came into effect in August. In the plan that has been launched, the Swiss government has set up a "sandbox" for digital currency supervision, aiming to create a more relaxed environment for bitcoin start-ups. Under the plan, companies with less than 1 million Swiss francs (about $1 million) will be "exempt from authorization" and their customer funds will not be included in the country's deposit protection regulations< br /> 

6.

The Swiss financial market authority (FINMA) said in September that Switzerland has no specific regulations on the sale of digital currency, but some transactions may be affected by the current regulations

in the "friendly" area of digital currency regulation, the number of new company registrations has soared. It is not difficult to see how difficult it is for national regulators to supervise digital currency transactions, and regulators are beginning to realize the challenges they are facing

7. In the early morning of September 5, Beijing time, according to the Wall Street Journal, UBS is working on developing a prototype of virtual currency, hoping that banks and financial institutions can use this currency as a settlement method for transactions in mainstream financial markets in the future
however, the "settlement coin" being developed by UBS is different from the digital currency bitcoin, which will be linked with real-world currencies and central bank accounts
this virtual currency will be used to support transactions on institutional financial platforms, which are based on the so-called "blockchain technology", similar to the so-called "distributed ledger" on which bitcoin completes transactions
for example, Swiss bank may have its own platform based on blockchain technology to issue bonds, while another bank may have a stock trading platform based on blockchain technology, but both platforms can use the same "common settlement currency" for settlement
unlike real currency, the "allocated ledger" used in this virtual currency will be verified by a computer network on the Internet, rather than by a centralized authority“ The result of the first use of "allocated ledger" is the creation of bitcoin, a virtual currency linked to money laundering and the online drug market, but it is being used by more and more legitimate businesses and emerging financial services start-ups around the world
in the past 18 months, blockchain technology has increasingly been regarded as a breakthrough trading and settlement method by mainstream financial institutions, which can be used for trading and settlement of real-world financial instruments such as stocks and bonds
UBS is working with clearmatics, a London start-up company, to develop this digital currency, which has developed a software based on blockchain technology to clear and settle financial transactions. Swiss bank executives said they did not plan to issue the digital currency on their own, but wanted to work with other market players, such as asset management companies, regulators and market structure providers such as clearing houses and exchanges, to create an instry wide proct

at present, more and more traditional financial institutions have begun to face bitcoin, especially blockchain technology. In the jewelry instry, Fuyuan coin with the nature of instry business points also appeared. Bitcoin and bitcoin technology will enter thousands of households in the near future.

8. In the early morning of September 5, Beijing time, according to the Wall Street Journal, UBS is working on developing a prototype of virtual currency, hoping that banks and financial institutions can use this currency as a settlement method for transactions in mainstream financial markets in the future
however, the "settlement coin" being developed by UBS is different from the digital currency bitcoin, which will be linked with real-world currencies and central bank accounts
this virtual currency will be used to support transactions on institutional financial platforms, which are based on the so-called "blockchain technology", similar to the so-called "distributed ledger" on which bitcoin completes transactions
for example, Swiss bank may have its own platform based on blockchain technology to issue bonds, while another bank may have a stock trading platform based on blockchain technology, but both platforms can use the same "common settlement currency" for settlement
unlike real currency, the "allocated ledger" used in this virtual currency will be verified by a computer network on the Internet, rather than by a centralized authority“ The result of the first use of "allocated ledger" is the creation of bitcoin, a virtual currency linked to money laundering and the online drug market, but it is being used by more and more legitimate businesses and emerging financial services start-ups around the world
in the past 18 months, blockchain technology has increasingly been regarded as a breakthrough trading and settlement method by mainstream financial institutions, which can be used for trading and settlement of real-world financial instruments such as stocks and bonds
UBS is working with clearmatics, a London start-up company, to develop this digital currency, which has developed a software based on blockchain technology to clear and settle financial transactions. Swiss bank executives said they did not plan to issue the digital currency on their own, but wanted to work with other market players, such as asset management companies, regulators and market structure providers such as clearing houses and exchanges, to create an instry wide proct.

9. Because Europe has seen the development potential of virtual currency and is graally using bitcoin in major trading projects, it will relax the regulation of new currencies.