Bitcoin in Switzerland: Benevolent blockchain regulation

On 14 December, the Swiss Federal Council published its report “Legal basis for distributed ledger technology and blockchain in Switzerland”. The report deals with the future regulation of Bitcoin and the underlying technology.

As previously announced, the Swiss government does not intend to enact an additional blockchain law. The technology, which lies under crypto currencies such as Bitcoin and Ethereum, holds great potential for the financial sector, as the Federal Council acknowledges in its report.

That is what the Bitcoin code report says:

“Distributed Ledger Technology (DLT) and Blockchain Technologies are among the most remarkable and potentially promising Bitcoin code developments in digitization. These Bitcoin code developments are predicted to have considerable potential for innovation and increased efficiency both in the financial sector and in other sectors of the economy, although this potential cannot yet be conclusively assessed. Today, Switzerland is one of the leading locations in the DLT and blockchain sectors. In the financial sector in particular, a growing FinTech and Blockchain ecosystem has developed in Switzerland in recent years”.

In order to create the best conditions for this, the company does not want to enact its own Blockchain law. However, the government is planning to react flexibly to technical innovations if necessary. In addition, the Federal Council of Switzerland considers some adjustments to be sensible.

To this end, the following Bitcoin code areas of financial market law are to be adapted by the beginning of next year:

Banking law, Financial market infrastructure law (new authorisation category for infrastructure providers in the blockchain/DLT area), Collective Investment Schemes Act: Consultation draft for the amendment of the Collective Investment Schemes Act in order to accelerate the approval of new Bitcoin code products. Here is the review by onlinebetrug.

Bitcoin money laundering: Swiss Federal Council cannot accurately determine real risk
In the future, more attention will also be paid to money laundering and the financing of terrorism. However, the Federal Council of Switzerland recognises that it is not possible to accurately assess the actual need for trade here:

“The risk analysis prepared by the Interdepartmental Coordination Group on Combating Money Laundering and Terrorist Financing (CFT) in 2018 shows that there is a risk of misuse of crypto-based assets for money laundering and terrorist financing due to the identified threat and vulnerability in Switzerland. However, the risk and vulnerability identified affects all countries. However, the risk analysis also shows that in Switzerland the real risk cannot be determined exactly due to the small number of cases.

Binance DEX: New video demonstrates how decentralized Exchange works

Binance is pushing ahead with the development of its decentralized Exchange (DEX). In a video, an Exchange developer demonstrates how the new platform works. Sending and receiving Binance Coins (NBBs) is therefore already working flawlessly.

The crypto community has high expectations of the development of a functioning decentralized exchange. Although BISQ and BitShares already work on paper, they are not yet accessible to a wide audience. A hot candidate for the breakthrough of decentralized Bitcoin exchanges is Binance DEX. In August of this year, Binance CEO Changpeng Zhao announced the development of DEX in a first teaser via YouTube.

Since then, the crypto community has been holding big plays on the Binance DEX. After all, Binance has been the world’s largest crypto exchange in terms of trading volume since the beginning of 2018. The user base of its DEX could therefore be correspondingly high, heralding a new chapter for trading in crypto currencies such as Bitcoin.

New Bitcoin formula preview demonstrates functionality

So now the Bitcoin formula company is releasing a new teaser. In the seven-minute video, one of the developers shows, among other things, how to create a wallet and then carries out a transaction with NBB. This is relevant because the DEX is based on the Binance Blockchain, where BNB acts as the native token.

What makes decentralized Exchanges so special?
DEX is almost a holy grail for crypto adaptation. Well-known Bitcoin bulls like John McAfee even bind their exorbitant price forecasts to the power of decentralized stock exchanges.

John McAfee Believes Decentralized Exchanges Will Take Over Crypto Trading
Security expert and cryptocurrency personality John McAfee believes centralized exchanges will soon go extinct, with decentralized exchanges (DEX) set to take over the cryptocurrency market.

What is the Bitcoin trader behind the DEX phenomenon?

The most important Bitcoin trader is probably the elimination of the so-called Single Point of Failure. Read more about it: Since users no longer have to deposit their liquid crypto assets on the servers of the stock exchanges, but can store them on the Exchange block chain, DEX are largely protected against hacking attacks. Instead of creating an account, users create a full crypto wallet and thus control their own private key. DEX are therefore less a platform than a decentralised protocol on which equal investors can trade without the stock exchange having to fulfil a fiduciary function.

The launch of Binance DEX is planned for the first quarter of 2019.

If you would like to get an overview of the pros and cons of decentralized exchanges, take a look at our DEX 101.