Authority’s in Switzerland suggested new regulations for financial technology (fintech) firms. The goal of the suggested rules is to reinforce business and success. Improving regulations could help lessen obstacles to market entry and provide more legal certainty for the blooming region, which must now turn the changes into Legislative Proposals. Department officials said legislative proposals could be sent to parliament by mid-2017 after a public consultation.
Finance Minister Ueli Maurer told a news conference in Bern Switzerland, “we assume that with the steps we have prepared and the commitment we have to the overall financial services industry we can provide a solution that puts us among the top (countries) in the world that regulate this”. The proposals sent a signal that Switzerland will rapidly establish good conditions for fintech firms,in this manner supporting innovation and sustaining financial sector employments. Switzerland diminish the likes of United Kingdom and Singapore when it comes to fintech.
A lot of digital currency organizations are subject to banking regulations as they are classed as deposit-taking firms, meaning they need 10 million Swiss francs ($10.3 million) in paid-up capital once their business grows absolute position.
The ministry projected a three-pronged blueprint:
- Organizing a new fintech license, granted by FINMA, for institutions which are restricted to taking deposits of up to 100 million francs and do not operate in the lending business. These would be exempt from traditional depositor protection systems. The minimum capital should amount to 5 percent of the accepted public funds, but no less than 300,000 francs.
- Imposing 60 days due date for holding money in settlement accounts, facilitating crowd funding services
- Generating a “sandbox” innovation area in which a provider can accept from the public funds of up to 1 million francs without being monitored by industry watchdog FINMA