The Federal Assembly in Switzerland has unanimously agreed on a motion that was seeking to compel the Federal Council to focus on virtual currency regulations using the current guidelines.

Giovani Merlini, a liberal public representative, had tabled the motion so that the Federal Council could be instructed, by law, to use the existing laws to provide virtual currency regulations. The motion was approved with ninety-nine to eighty-three in favor and 10 legislators did not vote.

According to Merlini, the lack of virtual currency regulations presents loopholes that can be exploited by malicious actors to harm crypto investors.

However, those who voted against the motion argued that Merlini failed to present enough details on how the Federal Council could use the existing regulations to secure investors.

Ueli Maurer, the finance minister in Switzerland, noted that the approval of the motion “went ahead of the scope of the planned regulations.”

In the past, Maurer, had pointed out that Switzerland may not develop fresh virtual currency regulations. Instead, the minister noted, the existing laws used in the financial and other sectors would be expanded to accommodate cryptocurrencies.

The approval of the motion means the Swiss government can be able to monitor the usage of digital currencies in money laundering, extortion, among other crimes. Before the passage of the motion, the financial market regulators in Switzerland resulted in regular updates warning investors against being lured into suspicious cryptocurrency investment schemes.

A few days ago, the Basel Committee on Banking Supervision (BCBS), a banking authority in Switzerland, noted that digital currencies have the power to cause “financial concerns and increase risks faced by Banks.” On whether cryptocurrencies are a store of value, the BCBS noted they cannot be relied upon and cryptos are generally “unsafe.”

By having a framework around virtual currency regulations, do you think Switzerland is on the right path to becoming a “crypto nation” as its financial leaders have previously anticipated?

Let us know your thoughts in the comments section below.

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