Switzerland goes a step closer to cryptocurrency regulation

Bern, March 22: The Federal Assembly of Switzerland recently approved a motion requesting the Federal Council to regulate cryptocurrencies. A press release said the council would now be responsible for "adapting the provisions on judicial and administrative procedural instruments so that they can also be applied to cryptocurrencies," The Next Web reported.

The press release also said that cryptocurrencies' pseudo-anonymous nature favoured extortion and money laundering.

"It should be clarified how the risks could be contained and whether the persons responsible for the cryptocurrency trading platforms should be equated with the financial intermediaries and subject to financial market supervision," the statement continues.

The European nation has long adopted a progressive stance regarding cryptocurrencies and has tried to facilitate the relationships between blockchain and cryptocurrency firms based in the country.

Switzerland is also host to "Crypto Valley", a cluster of business in foundations based in Zug, a small town located near Zurich.

The motion taken by the Swiss Federal Assembly is the first step towards tackling issues likes money-laundering and fraud. Fiat currencies like Swiss Franc have strict regulations that allow the government to prosecute criminals and regulate the market activity.