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For years, Swiss cryptography laws have appealed to blockchain enthusiasts. David Marcus, head of Facebook's blockchain, is no exception. He issued a statement in which he announced that he expected the new coin to be governed by Swiss law.
"Since its headquarters are in Geneva, the badociation (Libra) will be supervised by the Swiss Financial Market Supervisory Authority (FINMA). We have had preliminary discussions with FINMA and plan to discuss with them an appropriate regulatory framework for the Libra badociation. "
Marcus further stated that the badociation intended to register with the US Treasury Department's Financial Crime Network (FinCEN). The questions remain. Why did Libra choose to settle in Switzerland? What are the main differences between cryptography laws in Switzerland and the United States?
US laws on crypto have similarities
At first glance, the two countries do not seem to be adopting an extremely different approach.
The two countries:
- Allow currency and digital exchanges.
- Work to protect their citizens from illegal activities such as extortion or money laundering.
- Seek to use their existing financial legislature to apply to digital currencies.
- We are always trying to determine what exactly is the best way to regulate cryptography.
Switzerland has a "friendly" attitude
One of the main differences lies in the attitude. As the United States moves forward with resistance, caution and casual acceptance, Switzerland's position on cryptography is safe, but welcoming and open.
In March, the Federal Assembly, the legislative branch of the Swiss government, voted in favor of a motion to obtain instructions on how to enforce the existing laws regarding cryptography.
Like the United States, Switzerland has decided to regulate digital currencies under existing financial legislation. On purpose, the Swiss government does not have consistent laws on ICOs and cryptos. Instead, they choose to maintain the flexibility to handle different types of currencies in different ways, on a case-by-case basis.
This is subtle, but Switzerland's inconsistencies seem to provide more nuanced regulation, while the lack of clarity in US legislation has been a concern for the blockchain sector for years. Businesses, legislators and even presidential candidates have called for more clarity to facilitate progress.
Non-So Balance
At the same time, the US president recently used Twitter to launch an attack on Bitcoin.
I am not a fan of Bitcoin and other Crypto – currencies, which are not money, and whose value is very volatile and based on the air layer. Unregulated cryptographic badets can facilitate illicit behavior, including drug trafficking and other illegal activities.
– Donald J. Trump (@realDonaldTrump) July 12, 2019
US Treasury Secretary Steven Mnuchin held a press conference during which he expressed his doubts about cryptocurrencies.
"Cryptocurrencies such as Bitcoin have been exploited to support billions of dollars of illegal activities, such as cybercrime, tax evasion, extortion, ransomware software, illicit drugs , human trafficking … It is indeed a national security problem.
Add,
"I think to a large extent these crypto-currencies have been dominated by illicit activities and speculation."
Swiss leaders have taken a different approach. The President of the Swiss Confederation, Ueli Maurer, recently participated in the Crypto Valley CV summit, where he said the government "is constantly looking for ways to keep two lengths ahead" in blockchain regulation. He added that "our doors are always open" for all businesses seeking to get closer to the state.
Where would you go?
The blockchain community sees Switzerland as a kind of embbady. The iconic city of Zug has given birth to the second largest cryptocurrency in the world, Ethereum. With more than 700 blockchain-related companies in the city, the city of 30,000 has been dubbed "Crypto Valley".
While the United States seeks to curb the development of Libra on Facebook and House Democrats seek to prevent advanced technologies from being financially supported, it makes perfect sense for these societies to simply go where they want.
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