In January 2018, the State Secretariat for International Financial Matters (SIF), with the involvement of the Federal Office of Justice (FOJ) and the Swiss Financial Market Supervisory Authority (FINMA), established a blockchain/ICO working group. The working group will review the legal framework for financial sector-specific applications of blockchain technology and will point out concrete need for action.

In recent months, the working group dealt intensively with civil and financial market law and examined whether and to what extent amendments to the current legislative instruments are appropriate due to the development of blockchain technology. The focus here is not only on so-called initial coin offerings but on all applications of distributed ledger technology in the financial sector. In particular, a potential need for action was identified in the civil law transfer of tokens, their treatment under insolvency law and the creation of new opportunities in the area of financial market infrastructures. During the process, various members of the working group also contacted representatives of the sector in a targeted manner and analysed their concerns in relation to their work. This consultation provides an opportunity for the financial sector as a whole and all interested parties to comment on the potential need for action.

The working group is directly inviting financial and fintech associations to participate in the consultation. However, concerns may be submitted by all interested parties to fin@sif.admin.ch by 20 September 2018. The working group will report to the Federal Council by the end of 2018, taking due account of the results of the consultation. The Federal Council will decide on the introduction of any legal amendments based on these findings.

Blockchain/ICO working group consults sector on its work