What is Digital Banking

In Europe
Starting in 2023, the laws and rules that govern cryptocurrencies in Europe have been changing a lot. The
European Union has taken a progressive position on cryptocurrencies, and most of its member states now agree
that they are real money.

Legality and Rules in Europe: Europe is one of the first places where cryptocurrencies are accepted, with 39 of
the 41 countries that were looked at recognising their legality. A big chunk of the continent is covered by this
(95.1%). North Macedonia is the only country in Europe where cryptocurrency is not banned. Moldova's
position is still unknown. The European Union has been working hard on new rules to guide crypto-asset
markets. The goal is to make crypto-assets more useful while reducing their risks.

MiCA: Rules for Crypto Asset Markets: The EU has passed the Markets in Crypto-Assets (MiCA) law, which is
a big step forward for how cryptocurrencies are regulated. As part of Europe's Digital Finance Strategy, MiCA
wants to make sure that the rules for issuing and selling different kinds of crypto tokens are the same across
Europe. This law applies to stablecoins and cryptocurrencies like Bitcoin and Ethereum. It does not apply to
Central Bank Digital Currencies (CBDCs) or security tokens that are considered financial tools. At the EU level,
MiCA creates a general set of rules for crypto assets, markets, and service providers that weren't there before.
However, this regulation will not need to be put into national law because EU rules apply to all member states
and do not need to be translated into national law.

Consumer Protection and Sustainability Measures: The new rules include ways to protect consumers, like telling
them more about the risks, costs, and fees that come with crypto-assets. They also talk about market trickery,
laundering money, and giving money to terrorists. To deal with the damage that cryptocurrencies do to the
environment, especially their large carbon footprint, the EU plans to include crypto-asset mining in its list of
environmentally friendly activities by 2025. These efforts are meant to reduce the large amounts of energy that
some coin mining processes need.

Decentralised Finance (DeFi) and Innovation: The EU is making progress in regulating cryptocurrencies, but
there are still discussions going on about how to properly regulate decentralised use cases that don't fit into the
usual structure built on middle-men. People agree that rules should protect customers and encourage new ideas,
but they also know that decentralised technologies come with their own set of problems. To fix this problem,
there is a plan for a regulatory "sandbox" that would let groups try new things safely within the law.

In conclusion, Europe's method to regulating cryptocurrencies is based on a strong focus on protecting

consumers, maintaining financial stability, and protecting the environment. At the same time, they recognise the
need for innovation and flexibility in response to new decentralised technologies.

In Switzerland

As of 2023, Switzerland has become a leader in the cryptocurrency market. It is known for having a progressive
and favourable regulatory system. With an emphasis on legal clarity and openness, the country has worked hard
to include cryptocurrencies in its major financial system.

Limits and Legal Status: In Switzerland, cryptocurrencies are controlled and seen as valuable items. The Swiss
Financial Market Supervisory Authority (FINMA) is in charge of keeping an eye on everything that has to do
with cryptocurrencies. In recent years, Switzerland has changed its rules against money laundering to include
the cryptocurrency business. To stop money laundering, transactions worth more than CHF 1000 must be
completed within thirty days.

Types of Licences and Compliance: FINMA gives out four different types of crypto licences, depending on the
type of blockchain project: a fintech licence, an exchange licence, an investment fund licence, or a banking
licence. These licences are regulated by the Anti-Money Laundering Act (AMLA), which keeps a close eye on
all financial companies, such as cryptocurrency exchanges. Know Your Customer (KYC) rules also say that
companies that deal with cryptocurrencies have to follow them and report any suspicious activities.

Taxes: When it comes to taxes, Switzerland is thought to be one of the crypto-friendly countries. You don't have
to pay income tax on capital gains from cryptocurrencies that you hold as private assets. However, you do have
to pay tax on gains from business activities. Because cryptocurrencies are assets, they are subject to the wealth
tax. The rate of the wealth tax changes from canton to canton. There is also a Value-Added Tax (VAT) of 7.7%
on the sale of cryptocurrencies. However, cryptocurrencies that are used to pay for goods and services are not
subject to VAT.

Blockchain Innovation and Crypto Valley: Switzerland has taken the lead in encouraging new ideas in the
blockchain and cryptocurrency fields. The country passed the "Blockchain Act" in 2020, which gives companies
that use blockchain technology a complete set of laws to follow. This law has helped a community of
blockchain-based companies grow, especially in Zug, which is known as the Swiss Crypto Valley. Zug is now
home to many well-known crypto companies and blockchain innovators. This helps Switzerland become the
most important crypto hub in Europe.

Trends in the market and how cryptocurrency is used: More and more stores in Switzerland accept
cryptocurrencies, and the country has a lot of coin ATMs and exchanges. Many blockchain and cryptocurrency
companies, including big names like Ethereum and Solana, have moved to the UK because the government is
supportive and has made the regulatory situation better. As cryptocurrencies have become more popular, Swiss
banks have also changed to keep up. Now, customers can buy crypto assets through partnerships between
regular banks and digital asset banks.

Furthermore, Switzerland is a world leader in the crypto and blockchain industries thanks to its policies that
encourage innovation, strict regulatory control, and favourable taxation system when it comes to regulating
cryptocurrencies.