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MONEY

Swiss-based G20 regulator unveils plan to monitor cryptocurrency threat

On Monday July 16th, a financial regulator unveiled a strategy to monitor whether cryptocurrencies such as Bitcoin pose a threat to world economic stability.

Published: 17 July 2018 09:19 CEST
Swiss-based G20 regulator unveils plan to monitor cryptocurrency threat
Photo: Nhac Nguyen/AFP.

The plan follows on from a concerted drive by central banks and regulatory bodies to keep cryptocurrencies at bay.

In a statement, the Financial Stability Board (FSB), which oversees regulation among G20 economies, said it believes “crypto-assets do not pose a material risk to global financial stability at this time.”

But, the FSB added, the speed at which cryptocurrencies are spreading, the lack of solid data on their use and uncertainty over which rules apply in the sector should spur major economies to redouble their scrutiny. 

“Monitoring the size and growth of crypto-asset markets is critical to understanding the potential size of wealth effects, should valuations fall,” the FSB said.

The framework also calls of an examination of whether cryptocurrencies are evolving from a method of paying for goods and services into a securities product, which individuals are holdings as a savings device instead of a stock or a bond.

The FSB also underscored “the scarcity of reliable data on banks' holdings of crypto-assets.” That point serves as a chilling reminder of the 2008 financial crisis, which was made worse by the fact that some banks did not know their level of exposure to securities backed by junk mortgages, even after those mortgages started to fail. 

The FSB said an affiliate called the Basel Committee on Banking Supervision was “conducting an initial stocktake on the materiality of banks' direct and indirect exposures to crypto-assets.” 

It warned that the exposure of financial institutions to cryptocurrencies will serve as a key measurement of the “risks to the broader financial system.”

The FSB said it expects its plan will face hurdles from the outset, given the “data gaps” and “lack of transparency” in the sector, especially concerning the individuals trading coins on a daily basis. 

The FSB, currently chaired by Bank of England chief Mark Carney, said it will formally present the framework to G20 finance ministers when they meet in Buenos Aires later this month. 

The call for tighter monitoring follows major swings in the value of assets like Bitcoin and the constant emergence of new cryptocurrencies, which has raised fears that the unregulated and opaque market could pose a rising threat to investors.  

READ MORE: Modern-day Valais counterfeiters echo 19th century criminal

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MONEY

Can I get financial help in Switzerland if I’m struggling to pay the bills?

Can foreign residents who are struggling to get by receive the same financial help from the state as the Swiss do, and under what circumstances?

Published: 26 February 2024 13:48 CET
Can I get financial help in Switzerland if I'm struggling to pay the bills?

Say you are a foreign resident in Switzerland and find yourself short of funds, and are unable to pay your monthly bills.

Can you count on your canton’s public coffers to help you out?

Much depends on your status in the country.

If you have a residency permit, have been working in Switzerland and contributing to the social security scheme, then you can receive financial assistance, in form of subsidies, from your local authority.

This is how it works

For instance, if the obligatory health insurance premiums exceed 8 percent of the household income, then you are eligible to receive this help.

However, your canton of residence will look not only at your earnings, but at any other financial assets you hold as well.

So if your income is low but you have plenty of money in the bank in the form of savings or other investments, you will not qualify.

Generally speaking, any resident who is a low earner or has a large number of children — regardless of nationality — could be eligible for subsidised premiums, though criteria, as well as amounts, vary from one canton to another.

READ ALSO : How do I apply for healthcare benefits in Switzerland? 

What about housing?

Low-earners (again, regardless of nationality) are entitled to have their rents subsidised, under certain circumstances — the conditions as well as the income threshold is determined by cantonal authorities.

Generally speaking, in order to claim this help, you must prove that you live in the cheapest available housing in your area. (Needless to say, if you reside in a luxury apartment, you can’t ask for rent subsidy.)

If you don’t fulfill this particular condition, you will be told to move to cheaper accommodations before claiming any benefits.

Exceptions to this rule include situations such as a large number of minor children living in the household, which may make relocation — that is, finding a sizeable apartment at a cheaper price — unrealistic.

The amount of rent reduction will be set by the authorities.

Is any other help available?

If you can’t afford anything in Switzerland which, admittedly, is an extreme and rare situation for anyone working full-time and already receiving either health insurance or housing subsidy (or both), then your only other option is applying for welfare.

This, however, should be the absolute last resort if you want to remain in Switzerland and eventually apply for naturalisation, or even have your work permit renewed.

That’s because being on public assistance is grounds for refusal of citizenship — unless all the money is repaid in full in advance of your application.

READ ALSO: Can I still get Swiss citizenship after claiming social benefits? 

What about disabilities?

This falls under the general social security scheme, so if you are working in Switzerland, then you are eligible to receive these benefits.

The only exception may be people from outside the EU /EFTA — unless your country of origin has concluded a social security agreement with Switzerland.

This link provides additional information about these countries.

If you qualify for disability (and medical records confirm this), you can apply for these benefits at the social security office of your canton.

There are some other things you should keep in mind as well:

Not all foreigners who have a residency permit can apply for financial assistance.

If you came to Switzerland on a temporary permit (L or B), then you don’t have access to any benefits.

And if you ‘bought’ your Swiss residency, you can’t resort to any public help either.

The condition of your stay in Switzerland is that you should be self-sufficient enough to live here without having to work or resort to welfare benefits.

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