SWISS CRYPTOCURRENCIES RECYCLING - Switzerland has always been very supportive of cryptocurrencies. So much so that one of the most famous, Ethereum, has seen its birth in these territories. But this is not enough, in fact, a few years ago the Canton of Ticino also tried to create its own cryptocurrency, the Ticinocoin not gone amount. Trust in this means of payment, however, has not waned, on the contrary the interest is always increasing and also concerns the NFT, or the crypt art.
In Swiss, one of the most famous cryptocurrencies, Ethereum, was born, and not only was it very successful, but it also allowed a strong economic development all around. Cryptocurrencies have caught the interest of many entrepreneurs who have built a dense network of startups driven by the advantages that these new currencies bring.
"One of the main advantages of owning a digital collector’s item over a physical object is that each NFT contains distinctive information. Such information makes it different from any other NFT and easily verifiable. This makes the creation and circulation of false collector’s items unnecessary because each item can be traced back to the original issuer."
The strength of the Nfts and cryptocurrencies, as Oliver Camponovo points out, is to be completely safe and transparent, thus becoming an important tool in the fight against recycling that Switzerland has been pursuing for years.
Since the beginning of 2020 the European Union has entered into force the Fifth Anti-money Laundering Directive (5AMLD), with the aim of combating money laundering and terrorist financing. Following the same European line, Switzerland has also begun to implement similar manoeuvres since 2020, starting from imposing stricter regulations against cryptocurrencies. This choice was made with the aim of giving even more confidence to this method of payment and investment. If in fact it was initially intervened by imposing the confirmation of its identity for cryptocurrency transactions for a value of more than $1,000, then Switzerland was the first nation in Europe to regularize cryptocurrencies.
The law is not yet in force but it will be from 1 August 2021 and does nothing but redefine some laws already in force regarding cryptocurrencies, perfecting:
"rights, duties and guarantees with respect to financial companies, investors, users. In particular, this explicit settlement of cryptocurrency assets increases the certainty of insolvency law and allows the use of innovative TRD trading systems."
With this law, the interests of users will be better safeguarded, regulating even more everything that revolves around cryptocurrencies, including blockchain technology.
Oliver Camponovo works as an analyst in the financial world and offers advice in both corporate controlling and risk management. He strongly appreciates block chain impact investment & blockchain.