• October 6, 2022
  • ychan
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At Thursday`s “Plan B” event, hosted by Lugano Mayor Michele Foletti, the move was described as a “de facto” legalization, as the Swiss franc will certainly remain the real legal tender in Lugano and elsewhere in Switzerland. For value-added tax (“VAT”) purposes, cryptocurrencies are treated as legal tender, which means that cryptocurrency trading or exchange activities and additional services related to such trading or exchange activities are exempt from VAT.36 Legal persons are subject to annual capital tax. Therefore, legal entities must report cryptocurrencies in their tax valuation at acquisition cost or, if that value is lower, converted at the exchange rate provided by the FTA at the end of the year. Therefore, cryptocurrencies with no market value provided by the FTA must be reported at acquisition cost. The DLT Law introduced a new type of negotiable securities, called “DLT securities”, which allow the tokenization of rights, claims and financial instruments such as bonds, shares, structured products or derivatives. The concept of DLT-Securities aims to ensure the tokenization of rights by creating the legal framework for the electronic registration of rights that includes the same protection as a traditional security. The decision to accept Bitcoin and Tether as legal tender was 18 months in the works, said Pietro Poretti, director of the city of Lugano. The city began experimenting with blockchain technology and cryptocurrency payments in late 2020 by setting up a loyalty program using its proprietary points token called LVGA. The introduction of Bitcoin as legal tender in El Salvador was a historic decision. The law has opened the doors to a new currency and the future of digital finance. Senator Indira Kempis has announced that she will soon propose a crypto law to make cryptocurrencies legal tender and spread awareness, education and financial inclusion for it.

A number of cryptocurrencies, including Bitcoin and Tether, have become legal tender in Lugano, Switzerland, as the city aims to become a regional crypto hub. To accelerate its journey to blockchain adoption, the city partnered with Tether and recognized its proprietary stablecoin, USDT, as legal tender alongside Bitcoin. Related: Mexican Senator Proposes Crypto Law: `We Need Bitcoin as Legal Tender`] “This is probably the most important thing about this project (Plan₿). El Salvador`s GDP grew by 10% and its tourism by 30% after Bitcoin was declared legal tender. Imagine what we can do in a city in central Europe. Whether tokens can actually be “owned” depends in particular on whether they are considered securities or not. Under Swiss law, it is not disputed that securities may lawfully be in possession. When it comes to tokens that are not considered securities, i.e.

cryptocurrencies such as Bitcoin, the issue of ownership is currently unresolved. The majority of Swiss researchers currently believe that cryptocurrencies are not a “thing” within the meaning of Swiss civil law due to their lack of tangibility and for other reasons.42 The city of Lugano, in southern Switzerland, predicts that many local companies accept certain cryptocurrencies as “de facto” legal tender currencies as part of a partnership with Tether. Thus, it could be easier for European countries to accept them and Lugano for their decision, compared to El Salvador, which had to fight its way to make Bitcoin a legal tender. In Switzerland, cryptocurrencies are not legal tender.11 Cryptocurrencies are therefore not considered “currency” in the strict sense. However, some legal scholars argue that cryptocurrencies, if widely used, are accepted by the public and have assumed the typical functions of money, are considered “currency” in the broad sense.12 However, the Swiss National Bank (“SNB”), the central bank of Switzerland, recognizes the potential uses of digital tokens and will continue to closely monitor the respective commercial and technical developments.13 The initiative is supported. by Tether Operations Limited, the company behind the world`s largest stablecoin. In addition to Bitcoin and Tether (USDT), the LVGA points payment token is also accepted as a tender in the city. In addition to Bitcoin, Lugano has a partnership with Tether that allows the US-backed USDT stablecoin to be legal tender in Lugano as well. Lugano City Manager Pietro Poretti said: A city in Switzerland hopes to make Bitcoin and two other cryptocurrencies “de facto” legal tender to become the European capital of Bitcoin. Making Bitcoin a legal tender will allow people to pay taxes and government services in Bitcoin and make daily transactions with businesses.

The introduction of Bitcoin as a legal form of tender follows a similar decision by El Salvador last year, which became the first – and still the only – country in the world to officially adopt Bitcoin as its currency. The production of Bitcoin, Tether (USDT) legal tender would be a crucial moment for cryptocurrencies in Europe. One of the main reasons for the success of this initiative would also be the current situation in Ukraine. Although none of the panelists explicitly stated, the decision to adopt Bitcoin as legal tender was certainly accelerated by El Salvador`s decision last September, when the country was the first to recognize a cryptocurrency as the de facto currency. #lugano #planb announced that #bitcoin #tether and #luga (CHF stablecoin) were legal tender. Here are all the things you can pay for in the city in a few months. 🍫🇨🇭 pic.twitter.com/xkNA9Sp4Xw In an effort to become the European capital of Bitcoin, Lugano, Switzerland, has partnered with stablecoin issuer Tether to establish Bitcoin, Tether and Lugano`s own LVGA Points tokens as essentially legal tender in the city. Ardoino cited the work done by el Salvador`s lawmakers to introduce cryptocurrencies. In September 2021, the country`s Bitcoin law went into effect, allowing all residents and visitors to use BTC alongside the US dollar as legal tender. The Swiss franc is still legal tender in Lugano and throughout Switzerland. Bitcoin will be legal tender in Lugano alongside the Swiss franc In December 2018, the Swiss Federal Council published a comprehensive report on the legal framework for DLT and blockchain in Switzerland.1 The report generally concluded that Switzerland`s legal framework already provides in principle for appropriate regulations covering issues related to the development of new technologies. as DLT.

However, a selective need for action and improvement has been identified in certain areas of private law, financial market law and insolvency law. In this context, on 22 March 20192 the Federal Council published a draft law on blockchain and DLT (“draft law DLT”) and the message to the draft law DLT (“Dispatch”) on 27 November 2019.3 On 25 September 2020, the Swiss Parliament adopted the Law on Distributed Ledger Technology (“DLT Act”). The DLT Act represents an “umbrella legislation” that introduces a new concept of “DLT securities” into the Swiss Code of Obligations, which allows the tokenization of rights, claims and financial instruments (see below, “Introduction of DLT securities”). In addition, the DLT Act provides for the introduction of a new category of licenses as a DLT trading platform under the Financial Market Infrastructure Act (“FMIA”) (“see below, “DLT Trading Platform”) and certain clarifications on the treatment of cryptocurrencies in Swiss insolvency proceedings (see below, “Insolvency”). The amendments to the Swiss Code of Obligations and the Federal Act on Intermediate Securities provided for in the DLT Act, which allow the creation of DLT securities based on the general ledger, entered into force on 1 February 2021.