The Federal Council in Switzerland has called for an easing of the regulatory framework for FinTech providers in the region.
The regulator said the easing should reduce barriers to market entry for FinTech firms and increase legal certainty for the sector overall.
Several ideas have been presented by the Council, including a 60-day deadline for holding money in settlement accounts for crowdfunding and the establishment of a sandbox or innovation area.
The sandbox would allow FinTech firms to accept public funds - up to a value of CHF 1 million – which would not need to be regulated by the Swiss Financial Market Supervisory Authority.
“Digitisation in the financial business is advancing rapidly and has given rise to different business models in the FinTech area.
“Accordingly, the requirements of these players for low barriers to market entry are different,” the Federal Council explained.
Its Federal Department of Finance (FDF) has been instructed to prepare a consultation draft on the proposed regulatory improvements.
The consultation is expected to be published early next year.