How is DeFi & crypto regulation unfolding across Switzerland, the UK and EU

Discover the evolving regulatory landscape of DeFi and crypto in Switzerland, the UK, and EU, including the EU's MICA initiative, Switzerland's amicable co-existence approach, and the challenges of creating a harmonized framework.

Key takeaways

MICA (Market in Crypto Assets) is trying to create a harmonized regulatory framework for digital assets in the EU, but its effectiveness is uncertain.
Financial institutions need clear guidance on how to participate in the digital asset market without compromising their regulatory capital.
Switzerland has a different approach to regulating digital assets, with a focus on “amicable co-existence” between traditional finance and the digital asset market.
The Liechtenstein Blockchain Act is a comprehensive regulatory framework that allows for the creation of decentralized exchanges and other digital asset market infrastructure.
The EU is working on creating a harmonized regulatory framework for digital assets, but implementation is slow and uncertain.
Decentralized Finance (DeFi) is not regulated by MICA, but the EU is trying to address the regulatory gap through other means.
KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations are crucial for maintaining financial stability and preventing illicit activities.
The industry needs to work together to create a common understanding of what constitutes a digital asset and how it should be regulated.
Centralized exchanges are not decentralized, but are still subject to regulatory requirements.
DeFi is not inherently bad, but it needs to be regulated to prevent harm to investors or the financial system.
Switzerland and Liechtenstein have a more permissive approach to regulating digital assets, while the EU and UK are more cautious.
The EU is trying to create a regulatory framework that balances the need for consumer protection with the need for innovation.
The Grand Thierry liquidity gap is a major challenge in the digital asset market, and regulation can help address this issue.
Digital assets can be used for a wide range of purposes, including utility tokens, security tokens, and stablecoins.
The EU is trying to create a regulatory framework that is technology-agnostic, allowing for a wide range of technologies to be used in the digital asset market.
The industry needs to educate regulators and other stakeholders about the benefits and risks of digital assets.

How is DeFi & crypto regulation unfolding across Switzerland, the UK and EU

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