Switzerland has been working to entice companies and startups in the financial technology world to come to their bustling Crypto Valley. They are doing so by cutting back on the regulations on the various services that are surrounding the digital currencies and various other financial services offered.
There has been tremendous growth in the realm of financial technology as well as the acceptance of the related cryptocurrency affiliates. There have been notable changes in various degrees from state governments regarding the regulation from countries. However, Switzerland has been coming out in the forefront to open the door for a substantial amount of growth in this fast-rising financial sector by putting a lighter touch on the regulations and rules for the different financial technology companies.
In a recent publication, the Finance Minister noted the promises that have been made in regards to taking a closer look at banking legislation as a way to allow the smaller financial technology companies to cut through the red tape that will usually be associated with the bigger banking institutions.
While keeping the companies in line with the legislation, the idea that has been proposed for cutting back on the regulations in Switzerland is to create havens where the smaller companies and start-ups can innovate and experiment while in a controlled environment.
Companies obtaining less than certain amount of third party funding would be able to test various financial technology ideas without getting tacked with the regulations that surround digital currency and finance. The different banking licenses are also being considered and evaluated for allowing companies that are coming in under the funding limit to get the licenses that they need for those who do not offer to lend but offer deposits.
The Swiss government is working to encourage crowdfunding campaigns for these companies by raising the time legislated for the donors to withdraw their donations from seven days all the way up to sixty days. The extention is going to offer more security with funding.
Good News For Cryptos
While looking at cryptocurrency safety, the legislative changes encompass many financial services that span cryptocurrencies at large. The decentralized cryptocurrency through Blockchain technology is now a booming market bringing in more innovators and start-ups each day, which in turn drives the growth of financial technology.
Alt coins have been able to attract numerous mainstream companies in Switzerland and beyond, and the Blockchain technology and digital currency services are on the rise. With the recent Bitcoin hacks and price fluctuations, investors are looking elsewhere.
Companies like OneCoin using the Blockchain tech and other digital forms of currency are being classified with the more recognized financial technologies. All of the elements that fall under a similar regulatory umbrella now include automated wealth management advice, tailored social media groups, mobile telephone payment services, and crowdfunding systems.
Regarding cryptocurrency countries, Switzerland certainly takes the cake. The governments are painting the digital currencies with the same brush for regulations as though would with the various innovative technologies, which allows the cryptocurrencies legitimization while being encouraged to innovate and grow even further.
Instead of shying away from or shunning the growth and innovation of the digital money world, the Swiss have certainly embraced it to become a cryptocurrency haven. The path is clear to cut out a lot of the flat currency markets that are controlled by the central banks, and working to cut back on unnecessary fees and improving the security of the technology itself.