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Top 6 Blockchain and Crypto Companies in Switzerland
Given their tradability, virtual currencies should be classified as an asset. More recently, the Swiss Financial Market Supervisory Authority FINMA issued further guidance on the regulatory treatment of blockchain tokens and activities relating thereto see question 8.
Within this classification, FINMA considers that payment tokens typically do not qualify as securities in the meaning of Swiss law, but may be considered a means of payment under Swiss anti-money laundering AML regulation if they can be transferred by technical means on a blockchain infrastructure. If that is the case, the token issuer assuming the tokens are issued against consideration qualifies as a so-called financial intermediary and must i join a recognised Swiss self-regulatory organisation SRO for AML purposes, and ii comply with Swiss know-your-customer requirements in connection with the token issuance as well as further duties based on AML regulation such as proper record-keeping and reporting duties in case there is a suspicion of money laundering or terrorist financing compliance with these requirements can be substituted by way of the issuer mandating a regulated Swiss financial intermediary with the collection of funds and performing the associated duties.
Similarly, once a crypto currency qualifying as a payment token is in circulation, service providers such as custodians or exchange platforms may also be required to comply with Swiss AML regulation if they are acting in or out of Switzerland. Other forms of tokens that are not pure crypto currencies incl. In particular, these may be digital assets qualifying as securities or other financial instruments, interests in a collective investment scheme or bank deposits.
The legal qualification of these types of tokens and activities relating thereto must be assessed in the individual case based on the available FINMA guidance. As a result, issuers of such tokens may, in principle, be required to publish a prospectus and a key information document if no exemption applies see also question Beyond this, the FinSA specific rules such as client segmentation, rules of conduct or organisational rules can apply to persons engaging in the acquisition or disposal of such tokens or other financial services relating to such tokens, on a professional basis.
Also, the Swiss Federal Tax Authority FTA has included the most popular crypto currencies in the foreign currency exchange list it publishes for the purposes of enabling conversion into Swiss Francs for tax purposes. For tax purposes, tokens are generally categorised into the following buckets: i payment or native tokens, ii asset-backed tokens further divided into debt tokens, equity tokens and participation tokens , and iii utility tokens.
Payment tokens are from a tax perspective treated as movable capital assets. The purchase or sale of payment tokens is treated like a transaction with traditional means of payment currencies. The resulting profit or loss at the level of a Swiss individual investor generally qualifies as taxable income or as a non-tax-deductible expense with certain exceptions, e.
The purchase of a payment token by a Swiss investor on a crypto exchange respectively the issuance of a payment token is not subject to Swiss withholding tax. Because payment tokens do not qualify as taxable securities, they are not subject to issuance stamp duty respectively security transfer tax. The use of a payment token for the purchase of a supply or service is treated like the use of traditional means of payment currencies , i.
Switzerland does not prohibit the use or trading of crypto currencies nor are there any specific exchange controls relating to crypto currencies. However, certain activities relating to crypto currencies or other digital assets e. Specifically, the guidance addresses how the Swiss law requirement for financial services providers under FINMA supervision to transfer payment originator and beneficiary information to the recipient institutions in payment transactions must be interpreted in the context of crypto currencies, with FINMA applying a rather restrictive approach.
While FINMA holds that originator and beneficiary identification data must not necessarily be transmitted using blockchain technology, it further stated in the guidance that it is currently neither aware of any system at national or international level such as the SWIFT messaging system nor of any bilateral agreements between individual service providers that would enable the reliable transmission of such data for the purposes of payment transactions on blockchain.
As a consequence, for the time being, financial institutions subject to FINMA supervision are required to ensure that transfers of tokens to or from external wallets including in the context of exchange transactions only involve their own clients who have been appropriately onboarded.
Where a token transfer involves the external wallet of a non-client third party, the financial institution will need to complete a full onboarding of such person as if it were a new client.
While the guidance applies only to service providers subject to FINMA supervision, also recognised Swiss self-regulatory organisations have followed suit with respect to their interpretation of analogous provisions in their anti-money laundering regulations as applicable to their member financial intermediaries. ICO activity in Switzerland rose significantly from , peaking in with a total of 86 completed ICOs in the first 10 months of the year, representing an investment volume of approx.
In mid, however, the funding volume of token offerings dropped significantly. Regulated security token offerings STOs have so far not been able to generate the same levels of market interest but from a general market sentiment, STOs continue to strengthen their general scope and relevance in the crypto market www.
The Swiss Financial Market Supervisory Authority FINMA continues to take an open-minded approach towards projects for token issuances in or out of Switzerland to the extent they are structured and conducted in line with Swiss and applicable foreign financial regulation.
Organisers are encouraged to pre-discuss their projects with the regulator prior to launch and to obtain formal feedback in the form of a regulatory no-action letter or confirmation of the regulatory requirements to be complied with. In short, any such project must be reviewed individually, taking a substance-over-form approach, to determine applicable legal and regulatory requirements.
Depending on the nature and categorisation of the token to be issued, differing regimes may apply. For instance, issuances of pure payment tokens in or out of Switzerland are typically subject to anti-money laundering regulation.
Where tokens qualify as securities under Swiss law — which may e. Utility tokens, i. However, in practice, they often include other components that lead to a different regulatory qualification. Furthermore, according to FINMA practice, if a utility token is not useable as such at the point in time of issuance, it must be considered a security.
With the entering into force of the Swiss Financial Services Act on 1 January , prospectus requirements for tokens qualifying as securities has undergone substantial changes. Furthermore, for certain tokens qualifying as financial instruments and that are intended to be offered to retail clients, a key information document will need to be prepared.
Trading in crypto currencies can at this point be considered a fairly common activity in Switzerland. Both individuals and financial institutions engage in crypto trading. There are a number of professional Swiss financial intermediaries that offer exchange or trading as well as related wallet services relating to crypto currencies that do not qualify as securities under Swiss law. Some Swiss banks have taken up services for their clients relating to crypto currencies.
That said, many still have a reserved attitude towards clients with major crypto currency holdings or those that are active in crypto currency or blockchain related businesses. In , with the goal of alleviating certain concerns and supporting member banks in their approach towards new types of clients, the Swiss Bankers Association SBA published guidelines on the opening of company accounts for blockchain companies.
In August , the guidelines were updated with new terminology and content. The SBA guidelines specifically address client due diligence aspects, expectations with respect to token issuers as clients and explanations regarding specific business models. Please refer to questions 6 to 9 and 12 regarding the general classification of tokens and regulatory approach, incl.
With respect to representing tangible property in a blockchain token, it is worth noting that the Federal Council, in its DLT report dated 14 December , takes the general position that tokens cannot represent rights in rem in a legally effective way in lieu of possession.
However, where rights in rem are exercised through indirect possession combined with a contractual agreement between the party with direct possession and the owner, a representation of such rights in a blockchain token or other decentralised register entry is considered legally feasible by the Federal Council. Furthermore, the DLT Act will enable a more standardised approach to security token offerings in Switzerland and create further incentives for the creation of corresponding trading and exchange infrastructures.
Where digital assets are intended to represent a claim against an issuer or another external party, there is a concern under Swiss law that the formal requirements for the transfer of such claim from one party to another cannot be fulfilled by a mere digital transaction on a distributed ledger. This is because Swiss law generally requires a written instrument for an effective transfer of uncertificated claims. Legal doctrine has developed various workarounds to this issue, which remain untested in Swiss courts.
Similar concerns apply with regard to the granting of security over claims represented by blockchain tokens. The DLT Act that will enter into force in will partially resolve the current legal uncertainty by creating a civil law foundation in the Swiss Code of Obligations for securities existing on the basis of a decentralised digital ledger only so-called uncertificated register value rights.
Furthermore, the new law will include specific rules regarding the transfer of such securities as well as the creation of pledges over uncertificated register value rights. It is worth noting that pure crypto currencies, being native units of value on a blockchain that do not constitute nor represent a claim against a third party, are mostly unaffected by the concerns set out above.
In its report on the legal framework for distributed ledger technology and blockchain in Switzerland of 14 December pp. According to the Federal Council, a smart contract has three main characteristics:.
That said, what can be agreed within the framework of party autonomy under general principles of Swiss law should also be permissible within the framework of a smart contract. However, Swiss legal doctrine and practice in this area are still in a very early phase of development and potential issues such as liability for programming errors or execution errors have not yet been fully explored.
We are further not aware of any relevant Swiss case law in the area of smart contracts. Certainly, the immutability of smart contracts raises questions as to how changing circumstances and dispute resolution can be adequately addressed cf. Smart contracts are used in various expressions for the purposes of token issuances making use of a public blockchain such as the Ethereum blockchain typically using the ERC technical standard.
Furthermore, the potential of smart contracts is often discussed in the area of insurance products and the cooperation between insurers and reinsurers. B3i is a notable Swiss based industry initiative aiming to apply blockchain technology to the insurance sector. They were found to have operated a commercial deposit-taking business without a relevant financial market licence as later confirmed by the Swiss Federal Administrative Court.
The proceeding was concluded in March In a press release dated 27 March , FINMA announced that the company had accepted deposits in the meaning of Swiss banking regulation from at least 37, investors without a relevant financial market licence and had thereby severely violated supervisory law. The deposits amounted to over CHF 90 million Swiss francs. FINMA stated in its Annual Report that, throughout the year, it had carried out investigations with regard to approximately 60 ICOs, more than half of which were concluded.
We are not aware of any relevant Swiss case law at the federal level with respect to the concepts discussed herein. As a general concept, blockchain business can become subject to the DPA if they process personal data in Switzerland the mere storage of personal data on a server in Switzerland is sufficient. Deviating from most foreign data protection laws, the DPA also treats information referring to legal entities as personal data.
Swiss insolvency law in the Federal Act on Debt Collection and Bankruptcy DEBA currently does not provide for specific provisions regarding the segregation of crypto currencies or other digital assets in the bankruptcy of a third party custodian.
It is expected that the DLT Act will come into force in early The DLT Act is a framework act comprising a bundle of revisions to various existing Swiss federal acts, including the DEBA, implementing new rules with regards to the segregation of crypto-based assets from the bankruptcy estate, both in general insolvency and bank insolvency, as well as on access to data see also question 4.
To ensure legal and regulatory compliance, the legal qualification of commercial applications of blockchain technology, tokens and activities relating thereto must be assessed in the individual case prior to implementation. This has to be considered in the project management from the very beginning. Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website.
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It is mandatory to procure user consent prior to running these cookies on your website. By contrast, if the coinholder may redeem only at the current value of an underlying currency basket e. Licensing requirements for an issuer of stable coins backed by commodities depend on the type of underlying commodity and whether the coin holder has a contractual claim only or acquires a right in rem in the underlying commodity.
Stable coins representing a right in rem are not subject to financial market regulations and do not qualify as securities if certain requirements are fulfilled at all times.
By contrast, where a stable coin represents a contractual claim against the issuer, the qualification of the coin depends on the type of the underlying commodity.
If the stable coin is backed by banking-grade precious metals, the issuer may require a banking license. If other commodities are used as underlyings, the coin may constitute a security and potentially also qualify as a derivative resulting in a potential licensing obligation for the issuer as a securities dealer. Lastly, commodity-based stable coins may also qualify as units in a collective investment scheme if the investors are exposed to the risks related to the management and custody of the underlying commodities.
The same will in most cases go for redeemable stable coins backed by real estate. Where stable coins are backed by securities , a distinction must be made between a single-security underlying and a basket of securities. Coins backed by a single security are likely, by extension, to also qualify as a security and may, depending on the specifics of the individual case, constitute a derivative or even a structured product.
By contrast, if the underlying is composed of a basket of several securities, the stable coin so backed will in most cases constitute a unit in a collective investment scheme. Headquartered in Vevy, Switzerland, Metaco SA develops and markets smart contract trading solutions relying on blockchain technology. Metaco allows users to trade bitcoins with conventional currencies and precious metals on its regulated brokerage platform.
It helps clients implement new business models with blockchain technology. Monetas was one of the winners of the Swisscom Startup Challenge and is said to be valued at over CHF 90 million. Bitcoin by 3Dsculptor via Shutterstock. Email Address. About Author More info about author. Fintechnews Switzerland.
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Craig Wright. Changpeng Zhao. Recent Stories. Latest Switzerland Blockchain News. Crypto Capital Software. Ethereum Foundation Nonprofit. Jelurida Software. Santiment Research. ShapeShift Exchange. SwissBorg Exchange. BRD Wallet. Digital BitBox Hard Wallet. Aave AAVE 24h. Agora VOTE 24h. AidCoin AID 24h. Alethena ATH. Ambrosus AMB 24h. Anchor ANCT 24h. As of today, there is no Swiss court decision explicitly interpreting or determining the applicability of Swiss laws to the use of blockchain or cryptocurrencies.
The Swiss regulator has clarified, however, that the existing laws — eg, the Swiss financial market laws — are applicable to new technologies as well. The Swiss Cantonal Court of Zug dissolved envion AG based on Article b, paragraph 1, number 3 Defects in the organisation of the company of the Swiss Code of Obligations and ordered its liquidation in a decision of 14 November The bankruptcy proceedings of envion AG were conducted as ordinary bankruptcy proceedings controlled by the Bankruptcy Office of Zug in accordance with the Swiss Debt Enforcement and Bankruptcy Act.
Accordingly, the creditors were informed with a "call to creditors", which prompted more than 6, creditors to register their claims through an internet portal.
The creditors submitted over 57 million tokens to the bankruptcy administration. In broad terms, this procedure shows that the Swiss courts and authorities apply existing principles of Swiss civil, litigation and bankruptcy law to blockchain-based or cryptocurrency business.
Enforcement proceedings were ultimately initiated against three companies. Had it not been for the liquidation proceedings, as mentioned in 2. Having said that, FINMA is willing to continue to consistently take action against ICO business models that violate or circumvent supervisory laws, such as the banking, securities or anti-money laundering regulation. If these criteria are fulfilled, the deposit taking activity will not be deemed to be "on a professional basis".
There is no other regulatory sandbox in Switzerland. In Switzerland, as of May , no digital service tax applicable to blockchain-based business models or the use of cryptocurrencies has been introduced. However, Swiss tax authorities have published guidelines as to how they may treat the use of cryptocurrencies. Notably, the Swiss Federal Tax Administration issued a working paper on 27 August regarding the taxation of cryptocurrencies and other coins or tokens based on the blockchain technology.
This working paper also includes guidelines concerning the net wealth taxes imposed at a cantonal and communal level. As a matter of principle, existing tax laws may apply to crypto business models or blockchain-based services.
For example, transactions with crypto-assets will usually be out of the scope of Swiss transfer taxes. If, however, a token qualifies as a "bond-like" instrument as defined in Swiss tax practice, the trading of such an asset token can trigger Swiss securities transfer tax, should a Swiss securities dealer as defined in Swiss tax law be involved as an intermediary in the transaction.
Furthermore, the use of payment tokens is treated in the same manner as the use of fiat currency. The transfer of the payment tokens to a supplier of goods or services is not subject to value added tax. By contrast, the transfer of asset tokens or utility tokens may trigger value added tax consequences. For ICOs, the same principles apply: the VAT treatment of a sale of crypto-assets will depend on the characterisation of the crypto-assets sold.
In this regard, the proceeds from the sale of crypto-assets constitute income for the issuer unless the asset sold is a debt instrument. In sum, possible tax consequences for the parties involved in cryptocurrencies transactions must be analysed on a case-by-case basis under current federal and cantonal tax laws and existing guidelines. Based on the work of a federal expert group, the Federal Council published a report on 14 December on the legal framework for DLT and blockchain applications in Switzerland.
The report was intended, inter alia, to serve as a basis for the Federal Department of Finance and the Federal Department of Justice and Police to prepare a legislative proposal.
In the context of cryptocurrencies and blockchain, digital assets can be divided into two types of cryptocurrency or token from a Swiss civil law perspective. First, cryptocurrencies such as Bitcoin that primarily represent a value within the blockchain context, the value of which is limited to applications on the blockchain. Such tokens cannot be characterised as property rights in rem , securities or uncertificated securities, or rights. There is thus no specific requirement for the valid transfer of such tokens or claims to such tokens from a civil law perspective.
In other words: the transfer may occur without any formal requirements by making the de-facto-power-of-disposal or access available to the transferee or any third party. Second, tokens that are intended to represent tradable rights existing outside the blockchain and fulfil the purposes of securities, for which formal requirements must be fulfilled.
Such tokens or claims to such tokens should be structured as uncertificated securities and, strictly speaking, be assigned in writing in order for the "owner" or token holder to validly transfer the token, or the claims to the tokens. As a result of this, the transfer will be subject to a registration agreement but a written declaration by the token holder to assign the claims is no longer required. However, under the draft and existing laws, the question as to when the transfer of digital assets is final remains unanswered and the answer will depend on the underlying technology.
Should the creditor become bankrupt after it disposed of a digital asset, the time of the disposal and the validation of the transaction will be decisive in determining whether a claw-back is permissible. In broad terms, digital assets such as payment tokens, utility tokens and security tokens are classified as intangible assets that can be the object of contractual agreements.
The prevalent categorisation of digital assets initially stems from FINMA and distinguishes between three types of tokens: payment tokens, utility tokens and asset tokens. This token categorisation and the treatment of tokens by FINMA are rather straightforward from a Swiss financial market laws perspective.
FINMA's focus is on the economic function and purpose of a token substance over form and follows the principle of "same risks, same rules", while taking into account the specific features of each project.
These are synonymous with cryptocurrencies, such as Bitcoin, and are tokens which are intended to be used, now or in the future, as a means of payment for acquiring goods or services or as a form of money or value transfer.
Cryptocurrencies give rise to no claims on their issuer. However, if payment tokens were to be classified as securities through new case law or legislation, FINMA would accordingly revise its practice. These are tokens which are intended to provide access digitally to an application or service by means of a blockchain-based infrastructure.
FINMA will not treat utility tokens as securities if their sole purpose is to confer digital access rights to an application or service and if the utility token can actually be used in this way at the point of issue. In such cases, FINMA is of the view that the underlying function is to grant access rights and the connection with capital markets, which is a typical feature of securities, is missing. If, however, utility tokens, either additionally or solely, have an investment purpose at the point of issue, FINMA will treat such tokens as securities in the same way as asset tokens.
These represent debt or equity claims on the issuer. Asset tokens promise, for example, a share in the future company earnings or future capital flows. In terms of their economic function, therefore, these tokens are analogous to equities, bonds or derivatives.
Tokens that enable physical assets such as commodities or real estate to be traded on the blockchain would also fall into this category. Hence, FINMA will treat asset tokens as securities if they represent an uncertificated security and the tokens are standardised and suitable for mass standardised trading.
Stablecoins are currently not governed by any specific regulation in Switzerland. FINMA's treatment of any stablecoins under supervisory laws follows its existing approach for blockchain-based tokens. In any case, stablecoin projects often give rise to potential licensing requirements.
For example, a stablecoin backed by deposits of fiat currency with a fixed redemption right of the token holder may be subject to the Swiss Banking Act. If that stablecoin project would also qualify as payment system, it may additionally be subject to the Swiss Financial Market Infrastructure Act, provided that the payment system reaches the threshold of "significant importance" to the Swiss economy. Should the stabilisation mechanism not depend on the issuance and redemption of tokens and sale or purchase of a currency but, alternatively, depend on the price development of a basket of currencies or commodities, which is managed by the system's operator, there is the risk that the stablecoin and the issuer will be subject to the Swiss Collective Investment Schemes Act.
Applying this approach to, for example, stablecoins linked to currencies, commodities, real estates or securities will prompt any issuer or sponsor of stablecoin projects to pre-assess the project from a supervisory perspective, in particular with respect to Swiss banking regulation, Swiss financial market infrastructure regulation, Swiss securities and funds regulation and Swiss anti-money laundering regulation.
In Switzerland, payments for goods and services made with cryptocurrencies are basically allowed and there are no specific, cryptocurrency-related limits.
For such payments, the general principles of Swiss civil laws, notably contract law, apply. Hence, the limitations that do apply are to be found, for example, in the Swiss Code of Obligations, which sets out the material and formal requirements for the valid entry into and performance of agreements, such as purchase agreements, service agreements and employment agreements. No specific regulation applies to the sale of non-fungible tokens NTFs.
Unlike fungible tokens, non-fungible tokens are not interchangeable. NTFs are usually non-divisible in nature. They are thus amendable to blockchain projects related, for example, to digitisation of unique objects such as pieces of art, luxury goods and real estate , digital identity and digital certifications.
In broad terms, the general principles of law and existing statutes — regarding, for example, data protection, intellectual property, and creditor and investor protection — will apply. Markets for digital assets are can be traded or exchanged peer-to-peer in the blockchain network or by using cryptobanks, cryptobrokers, crypto-exchanges, or crypto trading platforms.
Currently, the Swiss secondary market for trading digital assets consists of these market participants or stakeholders. Over time, blockchain solutions will also be implemented in financial software upgrade cycles. In 'restricted areas' at first, then in more comprehensive applications. Jan is a Partner and leads the Cloud activities for Deloitte Switzerland. In this capacity he drives Deloitte activities in the area of Advice, Transform, and Operate in the context of cloud.
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Blockchain developers are earning $180,000 a year as the Swiss crypto industry booms
Operating a blockchain in Switzerland that enables trading of tokens developer trigger licensing requirements under developer FMIA. In practice, switzerland legal technical aspect relates to data protection. The important protocol should not be left by the contracting parties blockchain a software switzerland sole discretion. Chambers and Partners website Toggle navigation. Under Swiss law, heirs acquire the inheritance as a whole upon death protocol the testator by operation of law.
Top 50 Blockchain and Crypto Companies in Switzerland and Liechtenstein in 2020
Safely hold and spend your coins with peace of mind. Bitmain is now among the most recognizable companies in the cryptocurrency space and the proud parent of several brands, among them Antminer, Antpool, and Hashnest, all of which are ranked number one in their respective fields. Their machines and customers are present in multiple locations in almost every country of the world. Create value without borders or intermediaries. Aragon is a project that aims to disintermediate the creation and maintenance of organizational structures by using blockchain technology.
Bancor allows you to convert between any two tokens on their network, with no counterparty, at an automatically calculated price. Thanks to built-in liquidity, the future of user-generated tokens is here. Cardano is a decentralised public blockchain and cryptocurrency project and is fully open source. Cardano is developing a smart contract platform which seeks to deliver more advanced features than any protocol previously developed.
Dfinity is a blockchain based world computer network that is powerful enough to host business applications at scale. The network features a variety of innovations in the blockchain space.
The network is also capable of achieving transaction finality at an average speed of 7. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property. This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past like a will or a futures contract and many other things that have not been invented yet, all without a middleman or counterparty risk.
Utopia Music creates platforms so everyone can understand, use and benefit from the power of data. Develop and publish blockchain applications with your own sidechains on the open-source Lisk Platform. Promotion of new technology developments and applications, in particular promotion and maintenance of new open decentralized software architectures.
In the foreground - but not exclusively - is the promotion and development of the so-called Lisk protocol and the corresponding technology as well as the promotion and support of applications using the Lisk protocol. Status is an interface to access Ethereum, built for Android and iOS.
Enjoy encrypted messaging, a cryptocurrency wallet, and seamless access to DApps. Its purpose is the promotion and development of new technologies and applications, especially in the fields of new open and decentralized software architectures including the promotion and development of the Tezos protocol and related technologies. They create the economics of free, perfect and instant. The Waves Platform is a global public blockchain platform, founded in Santiment creates tools to help analyze the crypto market and find data-driven investment opportunities.
The project provides clean and reliable on-chain, social media and development information on over crypto assets, and develops unique metrics, signals, strategies and reports on top of their custom datasets. The Swiss gateway to convert money into cryptocurrencies and digital assets. Buy - sell bitcoins and ethers. Introducing Bity Kiosks, the easiest way to acquire or sell bitcoins with cash.
Only a phone number is required. The CoreLedger infrastructure creates a simple and secure platform from which to use blockchain technology. It allows users to digitize goods and services without programming effort. Thanks to blockchain technology, these assets can be securely and irrevocably transferred with immutable and unfalsifiable proof of ownership. Transactions using digitized assets decrease costs and integrate seamlessly with existing goods and services.
The Crypto Finance Group provides institutional and professional investors products and services with a level of quality, reliability, and security that are unique in the digital asset space today. Lykke takes advantage of breakthroughs in crypto-technology to build a global Internet exchange with immediate settlement for all asset classes and types of financial instruments.
The banking architecture is outdated and needs to be replaced. They propose an Internet exchange that uses blockchain to trade all types of financial instruments. The benefits are immediate settlement, low transaction fees, the absence of a single point of failure, and strategic independence.
Immediate settlement and highly competitive pricing will lead to rapid volume growth and establish the exchange as the Internet marketplace.
SEBA is a FINMA licensed bank and pioneer in the financial industry, building a progressive technological bridge between the digital and traditional asset worlds. Founded in April and headquartered in Zug, the bank enables clients to invest, safely keep, trade and borrow against traditional and digital assets, as well as issue tokens all in one place. Smart Valor is building the blockchain-based Valor-Network: a decentralized community-based marketplace for tokenized alternative investments.
It enables asset issuers to create and distribute tokenized alternative investment solutions. A Dynamic and innovative investment advisor with the mission ti provide simple access to the world of blockchain and crypto. Eidoo, a Ticino based blockchain startup, has officially launched the ICO Engine to allow Crypto companies and startups host and manage their token sales safely and with ease via the Eidoo mobile app.
Under Swiss law, both issuing cryptocurrencies as well as the subsequent trading of such tokens may be subject to anti-money laundering requirements.
There are two main groups of financial intermediaries. The AMLA and implementing regulations provide for a series of obligations that financial intermediaries must adhere to, e.
With regard to cryptocurrencies, the following is important concerning anti-money laundering regulations:. However, there are specific rules in place, which aim at generally promoting FinTech developments in Switzerland. In , the Swiss government announced that it plans on reducing barriers to market entry for FinTech businesses.
Under Swiss law, it is undisputed that securities may be legally owned. With regard to tokens that do not qualify as securities, i. It is currently not clear under which circumstances such service providers qualify as banks. This depends, in particular, on how the cryptocurrencies are being stored and the technical details of how such storage occurs. Specifically, with regard to stable coins, no general statement is possible whether financial market activities in connection with such coins require any financial market licence.
Depending on their design features, stable coins must therefore be analysed on a case-by-case basis to determine whether any such licence is required. Design features such as i whether a single underlying or a basket of underlyings is used, ii the type of underlying, as well as iii if the stable coin in question gives the holder a contractual redemption claim with regard to the underlying s , respectively, the value of the underlying s , or if the token merely fulfils the function of evidencing an ownership position with regard to the underlying s , may be decisive.
For example, according to the FINMA Supplement, in particular issuers of stable coins that are linked to i fiat currency applying a fixed ratio e. For instance, FINMA may qualify a currency, security or commodity-linked stable coin that provides each holder with a redemption claim, whose value is derived from the value of a basket containing various currencies, securities, and commodities, as a collective investment scheme, provided that the underlying assets contained in such basket are managed by the issuer for the account and risk of the token holders.
The latter, according to FINMA, mainly means that all opportunities and risks of asset management in the form of profits or losses due to, among other things, interest rates, fluctuations in the value of the underlying assets, and counterparty and operational risks, are borne by the holders of the stable coin in question.
With regard to licensing requirements, it must further be kept in mind that Switzerland implemented the new FinIA along with the FinSA in These new acts set forth a new licensing requirement for individual asset managers and a registration requirement for client advisors.
Such registration will be subject to certain requirements such as proof of sufficient education, training and professional experience in the respective area of practice. Under the current Swiss insolvency regime, it is not sufficiently clear whether cryptocurrencies could be segregated in favour of the entitled creditors if a third-party custodian, such as a wallet provider, were to enter into bankruptcy proceedings.
In view of these uncertainties, the DLT-Draft Law suggests certain amendments to the Swiss Debt Enforcement and Bankruptcy Act, in order to allow the segregation of cryptocurrencies for the bankruptcy estate of an insolvent third-party custodian.
The segregation in favour of the creditor will, however, among other things, require that the cryptocurrencies or tokens in question can unambiguously be allocated to the respective creditor, whereby this allocation can be achieved via the distributed ledger itself or by other means, such as an internal register reflecting the respective cryptocurrency accounts of the respective creditors outside the distributed ledger or by giving each token a specific serial number that can be allocated to the respective creditors.
In this case, the proportion of the remaining tokens to which the entitled person in question is entitled can be segregated. In this way, it is possible to keep the tokens of several customers in one collective account or in several collective accounts.
Therefore, the custody set-up under which the cryptocurrencies are stored is decisive for the question whether the cryptocurrencies can be segregated in insolvency.
Switzerland has no laws or regulations that are tailor-made to the phenomenon of cryptocurrencies or mining of cryptocurrencies. Hence, mining of cryptocurrencies is permitted and the activity is not subject to particular laws and regulations.
In Switzerland, there are no particular border restrictions or declaration requirements that would apply to cryptocurrencies. In Switzerland, making payments with cryptocurrencies is not a regulated activity and there are no reporting requirements to be met when such payments are made. In Switzerland, there are no particular estate planning or testamentary succession aspects concerning cryptocurrencies. Under Swiss law, heirs acquire the inheritance as a whole upon death of the testator by operation of law.
Therefore, all possessions with an inheritable value are transferred to the heirs by universal succession. Cryptocurrencies such as Bitcoin are considered to have an inheritable value.
Bitcoins that are recorded on a blockchain are attached to the latter. Problems arise when the heir does not possess the necessary means usually the private keys to dispose of the inherited cryptocurrencies.
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Utility tokens are tokens that are intended to provide access digitally to an application or service by means of a DLT-based infrastructure. Asset tokens represent assets such as a debt or an equity claim against the issuer. Asset tokens promise, for example, a share in future company earnings or future capital flows.
In terms of their economic function, therefore, such tokens are analogous to equities, bonds or derivatives. Tokens, which enable physical assets to be traded on a blockchain infrastructure, according to FINMA, also fall into this category.
In our opinion, this assessment is correct. They serve as mediums of exchange and arguably also as units of account and storage of value. Utility tokens are currently not treated as securities by FINMA, provided that: i their sole purpose is to confer digital access rights to an application or service; and ii the tokens can actually already be used in this manner when they are issued.
As FINMA points out, uncertificated securities may also be created in so-called pre-financing and pre-sale scenarios, if claims to purchase tokens in the future are granted in the course of such processes.
Such uncertified securities will also be treated as securities provided they are standardised and suitable for mass trading.
Stable coins, according to the FINMA Supplement, may classify as securities; for example, stable coins linked to commodities other than to so-called precious metals of banks which give rise to a contractual claim of the holder in relation to such commodities. Since, under Swiss law, securities may qualify as derivatives, such stable coins may be treated as securities, in particular in the form of uncertified securities, provided that they are: i standardised; and ii suitable for mass trading.
This might, for example, be the case for stable coins, which merely fulfil the function of evidencing legal ownership with regard to the respective underlying such as a commodity. The stabilisation quality of the underlyings is paramount, rather than the investment purpose or representation. This is also why relatively stable underlyings such as the U. Dollar or gold are often chosen. Finally, provided that, from an economical perspective, certain types of stable coins are designed in a way that they both reflect a payment as well as an investment function purpose, FINMA may qualify such coins as hybrid tokens.
For example, issuing asset tokens in the form of securities, which are linked to the performance of a share or a project, may, under certain circumstances, qualify as regulated securities firm activity. Such an issuing may also trigger the prospectus requirements under FinSA.
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Promotion and testing. Ownership and licensing requirements. Border restrictions and declaration. Reporting requirements. Estate planning and testamentary succession. Back to top. Definition Swiss law does not define the term cryptocurrency or virtual currency. Utility tokens are tokens that are intended to provide access digitally to an application or service by means of a DLT-based infrastructure. Asset tokens represent assets such as a debt or an equity claim against the issuer.
Asset tokens promise, for example, a share in future company earnings or future capital flows. In terms of their economic function, therefore, such tokens are analogous to equities, bonds or derivatives.
Tokens, which enable physical assets to be traded on a blockchain infrastructure, according to FINMA, also fall into this category. In our opinion, this assessment is correct. They serve as mediums of exchange and arguably also as units of account and storage of value. Utility tokens are currently not treated as securities by FINMA, provided that: i their sole purpose is to confer digital access rights to an application or service; and ii the tokens can actually already be used in this manner when they are issued.
As FINMA points out, uncertificated securities may also be created in so-called pre-financing and pre-sale scenarios, if claims to purchase tokens in the future are granted in the course of such processes. Such uncertified securities will also be treated as securities provided they are standardised and suitable for mass trading.
Stable coins, according to the FINMA Supplement, may classify as securities; for example, stable coins linked to commodities other than to so-called precious metals of banks which give rise to a contractual claim of the holder in relation to such commodities. Since, under Swiss law, securities may qualify as derivatives, such stable coins may be treated as securities, in particular in the form of uncertified securities, provided that they are: i standardised; and ii suitable for mass trading.
This might, for example, be the case for stable coins, which merely fulfil the function of evidencing legal ownership with regard to the respective underlying such as a commodity.
The stabilisation quality of the underlyings is paramount, rather than the investment purpose or representation. This is also why relatively stable underlyings such as the U. Dollar or gold are often chosen. Finally, provided that, from an economical perspective, certain types of stable coins are designed in a way that they both reflect a payment as well as an investment function purpose, FINMA may qualify such coins as hybrid tokens.
For example, issuing asset tokens in the form of securities, which are linked to the performance of a share or a project, may, under certain circumstances, qualify as regulated securities firm activity. Such an issuing may also trigger the prospectus requirements under FinSA.
The aforementioned licensing requirements under FinlA, however, do not apply as long as the person engaging in such activities has no physical presence i. Acting on a mere cross-border basis does not trigger any duty to obtain a securities firm licence. However, the regulations under FinSA, in particular, apply to persons who, in a professional capacity, provide financial services in Switzerland or to clients in Switzerland.
Operating a platform in Switzerland that enables trading of tokens may trigger licensing requirements under the FMIA. Organised trading facilities are establishments for: i multilateral trading in securities or other financial instruments whose purpose is the exchange of bids and the conclusion of contracts based on discretionary rules; ii multilateral trading in financial instruments other than securities whose purpose is the exchange of bids and the conclusion of contracts based on non-discretionary rules; and iii bilateral trading in securities or other financial instruments whose purpose is the exchange of bids.
However, in our view, the wording of the legal definition suggests that cryptocurrencies do not qualify as financial instruments within the meaning of FinSA. This view seems to be shared by the Swiss Federal Council. The fact that, within the current regulatory framework, organised trading facilities can only be operated by licensed banks, licensed securities firms or recognised foreign trading venues has been viewed by the Federal Council as problematic because companies cannot obtain any of these licences if they do not actually also carry out the activities of a bank, a securities firm or a recognised foreign trading venue in this case, according to current FINMA practice, they are not eligible for any such licence.
This is expected to open up new business opportunities for certain market participants and allow them to exercise their business model within the framework of a regulated and supervised activity. Licensed DLT-Trading Venues will be authorised to provide services in the areas of trading, clearing, settlement and custody of DLT-Securities to both regulated and unregulated financial market participants, potentially including retail investors.
Under certain conditions, the trading of cryptocurrencies may also be permitted at a DLT-Trading Venue. Cryptocurrencies held by individuals Wealth tax For the purpose of tax assessment, cryptocurrencies must be converted into Swiss francs. Income tax In general, capital gains on assets of individuals such as cryptocurrencies are exempt from income tax. Cryptocurrencies held by legal entities Capital tax Legal entities are subject to annual capital tax. Corporate income tax Corporations are subject to Swiss corporate income tax on any net taxable earnings from the sale of cryptocurrencies.
Such financial intermediaries are, for example, banks or securities firms. Whether such activity is carried out in a professional capacity or not must be assessed based on quantitative benchmarks e. However, specific rules would apply if cryptocurrencies e. Any person or entity continuously accepting more than 20 deposits from the public or publicly advertising to accept deposits is deemed to be acting in a professional capacity.
The second pillar, in force since August 1, , provides that funds held in customer accounts of asset managers, securities firms, dealers of precious metals or similar companies, which exclusively serve the purpose of settling customer transactions, do not qualify as deposits and therefore do not trigger bank licensing requirements, provided the funds are not interest-bearing and provided that they are forwarded within up to 60 days.
Under what circumstances a particular activity is considered to be similar to the activities of foreign exchange traders is currently not clear. The FinTech licence, however, does not allow the offering and provisions of loans and mortgages.
Therefore, it will be predominately crowdfunding platforms that will benefit from the simplified licence. The implementing Ordinance provides for a number of simplified requirements, relating to the required minimum capital, organisation and risk management, which must be satisfied in order to obtain a FinTech licence.
Insolvency Under the current Swiss insolvency regime, it is not sufficiently clear whether cryptocurrencies could be segregated in favour of the entitled creditors if a third-party custodian, such as a wallet provider, were to enter into bankruptcy proceedings. Federal Council Report — Legal framework for distributed ledger technology and blockchain in Switzerland, dated December 14, Hyperlink.
Hyperlink Hyperlink. To date, only i coins issued by the federal government, ii banknotes issued by the Swiss National Bank, and iii Swiss franc sight deposits at the Swiss National Bank qualify as legal tender. Message, p. Dispatch, p. It must be noted that this is a novel and rapidly developing field of law and different views can be taken as to the classification of crypto assets as securities under Swiss law.
In light of this, it cannot be excluded that FINMA will come to a different conclusion in the future, in particular with regard to cryptocurrencies. FINMA noted that they would reconsider their conclusion in light of the views taken in any future case law or any new legislation in this area. Over the last two years, FINMA has taken several enforcement decisions against token issuers where it considered that the Swiss Banking Act or another regulation was breached.
FINMA may appoint an independent and suitably qualified person an investigating agent to investigate circumstances relevant for supervisory purposes at a supervised person or entity, or to implement supervisory measures that it has ordered. This list of sanctions is not exhaustive. FINMA has the right to publish such decisions and to take measures against the individuals in charge of the issuing company.
Both FINMA and the Swiss Federal Council the executive body at the federal level are very open to new technologies such as blockchain and crowdfunding. In Switzerland began to adapt its regulations to facilitate the activities of Swiss companies in the FinTech space and more generally in relation to new technologies. One of these five goals states as follows: "FINMA will push for the removal of unnecessary regulatory obstacles for innovative business models.
The appropriateness of the regulatory framework is crucial in this context. FINMA is committed to ensuring that Switzerland's regime presents unnecessary obstacles to innovative business models. Current regulations should be reviewed to ensure that they do not hinder innovation, and new authorisation categories should be introduced for innovative providers of financial services.
Many associations have been established since in Switzerland in order to bring together blockchain specialists and enhance communication in this field, both in Switzerland and abroad.
These associations work closely with the Swiss and cantonal authorities in order to update the current laws regarding digital assets tokens. In addition, several accelerators and incubators — such as FinTech Fusion — are very active in Switzerland.
Finally, Swiss banks and insurance companies are also very keen to integrate blockchain into their business models. In the Swiss Banking Association issued specific guidelines updated in in relation to bank accounts linked to companies that are active in the blockchain space. One of the most common blockchain applications and protocols which has been implemented in Switzerland is the Ethereum blockchain. Ethereum is an open source , public , blockchain -based distributed computing platform and operating system featuring smart contract functionality.
It supports a modified version of the Nakamoto consensus via transaction-based state transitions. The Swiss Stock Exchange SIX is working on building fully integrated issuance, trading, settlement and custody infrastructure for digital assets. Token issuers for initial coin offerings ICOs and security token offerings STOs will be able to list their tokens on this platform. One of the most important projects which is being explored in Switzerland in this regard is Facebook's Libra stablecoin, using its own blockchain and protocol.
The Libra Association has been incorporated in Geneva and will eventually comprise members that will be validators nodes operating the Libra blockchain and governing the association. Libra will be pegged to a reserve of stable and liquid assets, including bank deposits and government securities government debt in currencies from central banks.
This was also the first time that FINMA categorised three different types of tokens: payment tokens, utility tokens and asset tokens. The guidelines were updated on 11 September in relation to stablecoins. On 17 October Geneva state issued its own guidelines on ICOs which summarise the information relating to the regulatory and tax measures in Geneva, with the aim of assisting ICO project issuers. These guidelines have been updated on December 5, and are now entitled "Guide to Digital Token Generations in the Canton of Geneva".
A map of this ecosystem is available on the Geneva state website. On 7 December the Swiss Federal Council adopted a report on the legal framework for blockchain and DLT in the financial sector, and made proposals for selective revisions to Swiss law in order to facilitate the implementation of DLT in Switzerland. There are no dedicated regulations applicable to cryptocurrencies in Switzerland. The guidelines clearly define the regime applicable to cryptocurrencies.
This can be the case at the time of the ICO …. In the case of utility tokens, AML regulation is not applicable as long as the main reason for issuing the tokens is to provide access rights to a non-financial application of blockchain technology.
In practice, FINMA often considers that utility tokens are hybrid tokens ie, utility and payment tokens. This is not problematic. Indeed, according to FINMA's written practice, the AML requirements "can be fulfilled by having the funds accepted via a financial intermediary who is already subject to AML in Switzerland and who exercises on behalf of the organiser the corresponding due diligence requirements. This is the Swiss standard. This arrangement is also required by Swiss banks before opening corporate bank accounts for blockchain developers.
A Swiss financial intermediary must undertake the following activities:. On 18 October the Capital Market Technology Association issued guidance for businesses and financial intermediaries on handling digital assets in compliance with the Swiss AML Act. As cryptocurrencies are not treated as legal currency under Swiss law, no specific tax rules are provided in relation thereto.
Cryptocurrencies will eventually be converted into fiat currency and will be treated under the applicable tax regime of the local jurisdiction. The platform must be affiliated with a self-regulatory body as a Swiss financial intermediary and will be subject to the Swiss AML Act. The platform must undertake the following activities:.
First, it is important to determine whether smart contracts may be concluded based on the parties' declaration of intent, which is a prerequisite for the conclusion of a contract according to Article 1, paragraph 1 of the Swiss Code of Obligations. In the blockchain world, a smart contract is a program written by a user in order to carry out a transaction with other users on the blockchain that accept the terms of that transaction.
A smart contract can thus be legally assimilated to an accepted offer and therefore to a contract. However, the essential elements of the proposed contract must be clearly spelled out in the program, and must be sufficiently precise, clear and understandable to be validly accepted by all parties in accordance with Article 1 of the Swiss Code of Obligations.
According to Swiss case law, if the real intent of the parties cannot be determined, the judge must interpret the declarations that the parties have made and their behaviour according to the principle of trust. Under the principle of trust, the objective meaning of its declaration or behaviour is attributed to a party, as the objective pursued by the parties or other circumstances might demonstrate their intent.
The judge will determine how a declaration or an attitude should be understood according to the rules of good faith, taking into account all circumstances. Accordingly, the behaviour of a party will be sufficient to determine its intent based on the execution of the transaction. Thus, in any case, a smart contract should be considered valid in accordance with Article 1, paragraph 1 of the Swiss Code of Obligations.
Its mandate is to supervise banks, insurance companies, exchanges, securities dealers, collective investment schemes and their asset managers and fund management companies. It also regulates distributors and insurance intermediaries.
It is charged with protecting creditors, investors and policyholders. As indicated above, FINMA has issued guidelines in relation to initial coin offerings and security token offerings, but not specifically on smart contracts. The Federal Council Report on the Legal Framework for Distributed Ledger Technology DLT and Blockchain in Switzerland explains on a high-level basis what smart contracts are and how they can be implemented within the issuance of tokens.
In addition, Switzerland benefits from a strong innovation community, in which private actors participate to promote the implementation of DLT within the country. On 27 April the Swiss Legal Tech Association issued a white paper on smart contracts; and in October the Capital Market Technology Association issued a blueprint explaining the main features of a smart contract for the tokenisation of shares. Commercial agreements are full of clauses that protect the parties from various liabilities.
Not all clauses are suitable for automation and self-execution through code. Even where a clause might technically be capable of automation, this might not always be desirable. For instance, imagine that a supplier of goods initiates a smart legal contract with a retailer. The payment terms could be defined in codes and executed automatically upon delivery. However, the retailer would likely insist that the contract include an indemnity clause.
There would be no point representing this clause in code, since it is not something that can self-execute. It is thus important to distinguish between operational clauses within legal contracts that can be automated and non-operational clauses that are less susceptible to self-execution.
Operational clauses generally refer to obligations that require a deterministic action on the occurrence of a specified event or at a specified time — for example, a payment against performance or a transfer of assets. As indicated above, non-operational clauses are less susceptible to self-execution by a smart contract. These formulations clearly have a legal meaning, but they are not susceptible to be encoded within a smart contract.
Different legal regimes will involve different interpretations of what these terms might mean, which are often heavily contextual and driven by the facts and circumstances. Even if smart legal contracts are functionally comprised of code, they will need to fall under the umbrella of an overall relationship that creates legally enforceable rights. Indeed, for a smart legal contract to be legally enforceable, there would need to be a legal contract that satisfies the requirements of the relevant governing law, but with some element of that legal contract being electronically automated.
With smart contract code only, by contrast, no legal contract might exist at all. This is why smart legal contracts will involve a mix of digital coding and traditional legal language. Smart contracts operate independently of the surrounding legal framework, but those that wish to use them will have to deal with legal issues regardless, which could include the following:.
Given the current state of the legislation, a smart contract is suited more as an execution mechanism for a set of deterministic obligations rather than as a contract in itself. The challenges with smart contracts primarily arise during the pre-contractual phase.
The parties must ensure that the code corresponds exactly to their declared intent, because once the code is written, interventions are no longer possible and the contract executes itself automatically. Lawyers who are familiar with coding can convert a traditional contract into a smart contract by identifying which contract terms, as well as practical and legal details, will be implemented as a smart contract and which if any will not.
Key algorithms for performing the parties' intentions can be specified. Legal issues can be identified and addressed. The important issues should not be left by the contracting parties to a software developer's sole discretion. The parties can also integrate the advice of legal counsel into the instructions given to the software developer.
It is possible to add comments that explain or annotate the source code of the program when programming the smart contract. These comments may be used to include some legal wording in the coding language in order to precisely define the intent of the parties. These comments may also be used as a basis for interpretation in case of disputes.
If there is a conflict between the code and the comments, the latter may prevail over the code to ensure that the real intent of the parties is considered. Even fully self-executing contracts will ultimately need to refer to legal terms that will define each party's rights in case of litigation. A public blockchain is a permissionless blockchain. Anyone can join the blockchain network — meaning that anyone can read, write or participate in a public blockchain.
Public blockchains are decentralised; no one has control over the network; and they are secure in the sense that the data cannot be changed once validated on the blockchain. On the other hand, a private blockchain is a permissioned blockchain. Permissioned networks impose restrictions on who can participate in the network and on what transactions may be conducted through it.
The above considerations in relation to smart contracts do not differ significantly between private and public blockchain, as the implementation of smart contracts is technically the same. That said, the issue of which data can be inserted within smart contracts is highly sensitive. Data that is available on a public blockchain is available to anyone. It may be anonymised, but advances in technology such as quantum computing might render ineffective the cryptographic consensus mechanism that underpins the blockchain protocol.
One possibility is to write the hash of transactions on the blockchain while storing the transactions themselves off-chain. This will allow transactions and related data to be erased, while maintaining their integrity on the blockchain, leaving only a trace of the deleted information. This is mainly due to the fact that blockchain is a decentralised technology and an append-only database. Debate is ongoing as to how blockchains should be designed in order to comply with the GDPR. For instance, the GDPR is based on the assumption of the existence of a data controller through whom data subjects can enforce their rights.
Blockchains, on the contrary, are decentralised, meaning that many different players could be considered as data controllers or joint data controllers. The allocation of obligations and responsibilities is thus burdensome, and identifying joint data controllers may also be challenging. The question of which Blockchain actors should be considered as a sub processor also raises questions.
Blockchains, on the other hand, are aimed at ensuring data integrity and trust in the network. Another point of tension between blockchain and data protection concerns the principles of data minimisation and storage limitation or data location crossborder.
Identifying which data qualifies as personal data may also be a challenge eg, public keys. Also, data anonymisation methods which would avoid the application of data protection laws such as the GDPR are being debated in the big data era and in light of evolving technology. It is easier to design private and permissioned blockchains in a manner that is data protection compliant than public and permissionless blockchains, as the former allow for the designation of a data controller and proper allocation of responsibility, and provide for greater control over the data e.
Depending on their design, blockchains may offer advantages in relation to the level of management and sharing of personal data, and offer certain tools to meet data protection requirements. This is true, for instance, with regard to the duty of transparency, the control of data subjects over their data, the right of access and data portability, which are all enshrined in the GDPR.
For instance, blockchains ensure transparency as to the data stored on the blockchain and may provide information about who has accessed the data. Blockchains may be designed to allow for data sharing in a decentralised manner, and may even automate this process through smart contracts or allow data subjects to be informed of access to their data.
Blockchain is not exempt from cybersecurity issues. For instance, if an attacker gains access to the blockchain network, this could afford access to the data stored on the blockchain.
This is notably an issue for private blockchains, which are confidential, as they do not allow anyone to access and participate freely in the network. This will also be an issue for public blockchains if a hacker were able to reverse an encryption method for instance.
Other cybersecurity risks — including theft of private keys and attacks on decentralised organisations built on top of the blockchain, such as smart contracts — must also be considered. This is also true for oracles, which if corrupted will cause a domino effect across the blockchain network in terms of data quality. Furthermore, tokens embedded in a blockchain may be subject to expropriation or theft. Hackers and other malicious groups or organisations may attempt to interfere with smart contracts or tokens in a variety of ways, including through malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing.
The decentralisation of blockchain technology is an advantage in terms of cybersecurity. For instance, it is convenient for cybercriminals if data is stored in one place; when data is stored on blockchain-based solutions, hackers no longer have a single point of entry to data repositories.
Furthermore, blockchain requires a public and private key, which creates a secure digital identity reference. Cryptographic access keys on the blockchain may be revoked at any time. Also, blockchains have no single point of failure, which reduces the risks of disruption of the network in the event of a cyberattack. For example, if a node is taken down, the data will still be accessible via other nodes within the blockchain.
Blockchain technology also provides advantages with regard to the integrity and traceability of the data. Users can trust the integrity and truthfulness of the data stored on the blockchain although the blockchain does not guarantee the quality of the data. Every transaction added to a public or private blockchain is digitally signed and timestamped, and results in a change to the global state of the ledger. Measures such as full encryption of blockchain data blocks, end-to-end encryption and security controls should be implemented to ensure that the data cannot be accessed by unauthorised third parties.
Monetas was one of the winners of the Swisscom Startup Challenge and is said to be valued at over CHF 90 million. Bitcoin by 3Dsculptor via Shutterstock. Email Address. About Author More info about author. Fintechnews Switzerland. Click here to cancel reply. Bancor allows you to convert between any two tokens on their network, with no counterparty, at an automatically calculated price.
Thanks to built-in liquidity, the future of user-generated tokens is here. Cardano is a decentralised public blockchain and cryptocurrency project and is fully open source.
Cardano is developing a smart contract platform which seeks to deliver more advanced features than any protocol previously developed. Dfinity is a blockchain based world computer network that is powerful enough to host business applications at scale.
The network features a variety of innovations in the blockchain space. The network is also capable of achieving transaction finality at an average speed of 7. Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.
These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.
This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past like a will or a futures contract and many other things that have not been invented yet, all without a middleman or counterparty risk. Utopia Music creates platforms so everyone can understand, use and benefit from the power of data. Develop and publish blockchain applications with your own sidechains on the open-source Lisk Platform.
Promotion of new technology developments and applications, in particular promotion and maintenance of new open decentralized software architectures. In the foreground - but not exclusively - is the promotion and development of the so-called Lisk protocol and the corresponding technology as well as the promotion and support of applications using the Lisk protocol.
Status is an interface to access Ethereum, built for Android and iOS. Enjoy encrypted messaging, a cryptocurrency wallet, and seamless access to DApps. Its purpose is the promotion and development of new technologies and applications, especially in the fields of new open and decentralized software architectures including the promotion and development of the Tezos protocol and related technologies.
They create the economics of free, perfect and instant. The Waves Platform is a global public blockchain platform, founded in Santiment creates tools to help analyze the crypto market and find data-driven investment opportunities. The project provides clean and reliable on-chain, social media and development information on over crypto assets, and develops unique metrics, signals, strategies and reports on top of their custom datasets. The Swiss gateway to convert money into cryptocurrencies and digital assets.
Buy - sell bitcoins and ethers. Introducing Bity Kiosks, the easiest way to acquire or sell bitcoins with cash. Only a phone number is required. The CoreLedger infrastructure creates a simple and secure platform from which to use blockchain technology. It allows users to digitize goods and services without programming effort. Thanks to blockchain technology, these assets can be securely and irrevocably transferred with immutable and unfalsifiable proof of ownership.
Transactions using digitized assets decrease costs and integrate seamlessly with existing goods and services. The Crypto Finance Group provides institutional and professional investors products and services with a level of quality, reliability, and security that are unique in the digital asset space today. Lykke takes advantage of breakthroughs in crypto-technology to build a global Internet exchange with immediate settlement for all asset classes and types of financial instruments.
The Crypto Valley Association lists over members, including both organisations and individuals. Most companies who have pursued ICOs this year tend to be linked to either cryptocurrency or the blockchain technology that underpins it and this has pushed up the salary of developers in the country.
As a result, Bertani said it has become "almost impossible" to find good blockchain developers there as companies flush with ICO cash pay higher and higher salaries to attract talent. The startup has built a mobile cryptocurrency wallet but is also developing tools to let investors back ICOs through its app and other features such as a decentralized cryptocurrency exchange.