The DLT Act has laid the foundations for the emergence of digital, DLT-based exchanges that enable the trading of digital securities. This makes Switzerland one of the first countries in the world with legal regulations for DL and blockchain technologies, which will further promote the country as a financial center.
The resulting legal certainty gives companies that use the young DL and blockchain technologies a strategic advantage in international comparison, thereby increasing Switzerland's competitiveness. Fintech start-ups in particular, which operate at the interface between the highly regulated financial market and young technologies that have (as yet) been little regulated, benefit from the consistent application of relevant rules.
Just one month after the law came into force, FINMA granted its first DLT trading facility license to SIX Digital Exchange, the subsidiary of SIX Swiss Exchange, Switzerland's largest stock exchange. The company issued its first digital shares (German only) in July 2022. Although the industry of digital exchanges and securities is currently still in its infancy, the granting of further licenses and the emergence of new digital exchanges in Switzerland is foreseeable.
As a result of the new federal law, the emergence of new companies that can benefit from legal certainty for DL and blockchain technologies is foreseeable. Likewise, this certainty, combined with Switzerland's strength as a research hub for future technologies, will lead to new developments that can be exploited commercially. Overall, the new legislation contributes to the advancing maturity of the DLT and blockchain industry, which was previously considered risky due to the lack of regulation.
Eraneos, part of Eraneos Group, offers blockchain services along the entire life cycle: starting from the assessment stage, where we help clients define their blockchain strategy, clarify possible use cases and assess the potential impact. We develop proof of concepts to help clients visualize the added benefit of the technology, and guide companies through the complexities of implementation.
For more information, please contact our in-house Expert Maria Sommerhalder.