Swiss Federal Council commences consultation on amendments in fintech regulations

The Federal Council of Swiss Government has initiated the consultation on the amendments in the fintech sector. The revision curbs the barriers to market entry for fintech companies, thus making sure that the competitiveness of the Swiss financial center is enhanced in the global level.

The amendments were made to the Banking Act (BankA) and Banking Ordinance (BankO) in the fintech arena. These reconsiderations are aimed to regulate fintech and other companies that offer services outside normal banking businesses, with respect to their risk potential.

The proposed three supplementary elements include the creation of an innovative area, simplified authorization and operating requirements relative to the current banking license in the areas of accounting, auditing, and deposit protection, among others.

“Due to the rapidly progressing digitization in the financial sector, in particular in the blockchain area, it can be assumed that business models will develop which are not yet conceivable today. The Federal Council will follow these developments closely also in the future and will swiftly propose the necessary regulatory adjustments if required,” the release stated.

Last November, the Swiss Federal Council called for an easing of the regulatory framework for providers of innovative fintech. This easing should reduce barriers to market entry for fintech providers and thus increase the legal certainty for the sector overall.