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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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INHERITANCE

Inheritance in Switzerland: Which country’s laws should dual nationals follow?

Switzerland has well-defined rules for inheritance and succession rights. But do dual nationals have some leeway in choosing which country's laws to follow?

Published: 13 May 2024 12:20 CEST
Inheritance in Switzerland: Which country's laws should dual nationals follow?

First, let’s look at what Swiss inheritance / succession legislation says.

Who gets what depends on whether you have a will or not when you die (the latter’s legal term is ‘intestate.’)

If you don’t have a will, your estate will be divvied up among your legal heirs: spouse or registered partner and children.

Typically, the spouse gets half of your assets and the children the other half, to be divided equally among them.

In case you have no kids, your parents or even grandparents could inherit from you.

Next in the statuary succession rights  are siblings.

If, however, you have no living relatives whatsoever, your estate will go to the canton or commune of your last residence.

What if you do have a will?

It will give you some, though not total, flexibility in who you want to leave your assets to — and how much. 

For instance, you can choose who your heirs will be and how your estate should be distributed among them.

You can decide to give more than a half to your spouse and less to the children, or vice-versa.

However, your legal heirs — that is, spouse and children — cannot be cut out of your will altogether.

Note that this law applies to Swiss citizens only. If you are a foreign national living in Switzerland, your succession is normally governed by the laws of your country.

However, if you a long-term resident and plan to remain here permanently — for instance, if you have a C permit — you can choose the Swiss law instead of the foreign one to apply upon your death. But you must state your preference in your will.

If you die intestate, then the Swiss legislation will kick in, as it will be deemed the law of your last place of residence.

READ ALSO: 7 things you need to know about Swiss inheritance law

What about dual nationals?

At present, those who have Swiss citizenship in addition to a foreign one, must abide by Switzerland’s inheritance law only.

That’s because, for all intents and purposes (including legal ones), they are considered to be Swiss citizens only.

However, this will soon change.

On December 22nd, 2023, the parliament adopted the Federal Act on International Private Law (PILA), which will give dual nationals in Switzerland the option of basing their succession on the laws of  their ‘other’ country of citizenship.

However, in doing so, dual nationals can’t derogate from Swiss statuary succession rules — that is, they won’t be able to exclude spouses and children from inheriting their part of the estate.

The new legislation is expected to come into force on January 1st, 2025.

READ ALSO: What you should know about dying in Switzerland

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