Switzerland proposes new regime for fintech companies
Q. Which country on 2nd Nov proposed a light-touch regulatory regime for financial technology (fintech) companies?- Published on 03 Nov 16a. Austria
b. Switzerland
c. Iceland
d. Finland
ANSWER: Switzerland
Easing rules can also reduce barriers to market entry and provide legal certainty for the sector.
- Switzerland lags the likes of Britain and Singapore when it comes to fintech.
- Firms specialising in crypto currencies hold that financial regulations must transform for them to develop in places like Zug, dubbed "Crypto Valley".
- Many crypto currency companies are subject to banking regulations as they are classed as deposit taking firms meaning they need 10 million Swiss Francs in paid up capital once the business thrives beyond a certain level.
- A three pronged strategy has been proposed by the cabinet which includes setting a deadline of 60 days for holding money in settlement accounts, facilitating crowdfunding services, creating sandbox innovation and establishing a new fin-tech license granted for institutions restricted to those taking deposits of 100m francs and not operating in the lending business.
