ETHERLive
ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.

---

24hr ---
--%
Tuesday Jan 16th 2018
RESOURCES

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More
SUBMIT

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story

Explanation

Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
---
--%
Home
News
Etherlive
Ether Price Analysis
Resources
Contact Us

Swiss Federal Council Finalizes Amendment To Banking Ordinance

By

Dan

Cummings

WriterETHNews.com

Swiss officials have finalized an amendment to the Banking Ordinance in order to help strengthen Switzerland's financial services industry.

On July 5, 2017, the Swiss Federal Council (the Council) implemented an amendment to the Swiss Banking Ordinance (BankO) that will go into effect on August 1, 2017. The amendment, which was originally suggested in February 2017, aims to lower the market obstacles that FinTech firms face, and regulate services that operate outside normal banking business according to their risk potential. To facilitate this, the Council will make two revisions to the BankO.

First, the Council has extended the grace period that applies explicitly to settlement funds to 60 days instead of seven. Currently, deposits made into settlement accounts of market participants don’t qualify as public deposits if they are interest-free and/or resolve client transactions within seven days. This revision benefits crowdfunding platforms, such as token offerings, which take investor funding to finance projects and then proceed to transfer the funds to the venture within a preset time.

The Council has also agreed to introduce a sandbox in order for firms to test out new business models before having to obtain commercial authorization. As a result, firms will be allowed to accept public funds from more than 20 persons up to 1 million Swiss francs before being classified as a commercial entity, so long as they don’t re-invest those deposits. However, the Council requires firms to issue warnings that deposits are not protected by FINMA.

A separate amendment, concerning the Banking Act (BankA), the Financial Services Act, and Financial Institutions Act, was proposed in December 2016. In this case, the Council promoted the formulation of a new authorization category for BankA companies that accept public funding up to 100 million Swiss francs, but do not invest or pay interest on those funds. The Council recommended that firms within the new category should have simplified authorization and operation requirements in the areas of accounting, auditing, and deposit protection. Swiss officials will debate moving forward on the proposal this autumn in the National Council.

Nevertheless, the Federal Council states it will continue to observe developments within the emerging FinTech industry. This includes “swiftly pursuing” the legal status of virtual currencies. In addition, the Council elaborated that the amendments were put in place, not just for emerging FinTech firms, but established financial service providers as well. “Banks should also be able to use the innovation area. This will ensure that the competition amongst the financial market participants is not distorted.”

Dan Cummings

Dan is a Los Angeles-based musician, writer, and veteran passionate about science and technology, current events, human rights, economic impacts, and strategic calculus.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Switzerland, Banking Ordinance or other Ethereum law and legislation news.