Slide 1 | www.web3-talents.io/dlt-talents Partners Supported by Organized by With donations from DLT Talents Session 5 May 30, 2023 MiCA, Blockchain Regulations in Switzerland and Liechtenstein Miyoko Shimura

Slide 2 | www.web3-talents.io/dlt-talents / New MiCA Regulation Formal adoption of the MiCA regulation in May 2023 marks the final step in the legislative process for bringing crypto-assets under a regulatory framework in the EU.

Slide 3 | www.web3-talents.io/dlt-talents / Comment on New MiCA Regulation “I am very pleased that today we are delivering on our promise to start regulating the crypto-assets sector. Recent events have confirmed the urgent need for imposing rules which will better protect Europeans who have invested in these assets, and prevent the misuse of crypto industry for the purposes of money laundering and financing of terrorism.” (May 16, 2023) Elisabeth Svantesson, Minister for Finance of Sweden Source: Council of the EU

Slide 4 | www.web3-talents.io/dlt-talents / Goals of New MiCA Regulation

Slide 5 | www.web3-talents.io/dlt-talents / Reactions to MiCA Overall, positive reactions on Linkedin among people working for crypto industry. Source: LinkedIn

Slide 6 | www.web3-talents.io/dlt-talents / Switzerland’s Blockchain Regulation & Business Switzerland is the home of the crypto valley in Zug, near Zurich, and has an active community of enterprises working in the crypto space. Source: Wikipedia. Zug View over the Lake Zug

Slide 7 | www.web3-talents.io/dlt-talents / Switzerland’s Blockchain Regulation & Business ● Switzerland has a well-developed infrastructure and a sound legal framework for companies active in the crypto space ● Blockchain businesses in Switzerland are defined by more mature projects, many of which are backed by established financial institutions and technology companies ● The new wave of blockchain start-ups in the financial sector more readily accepts and embraces regulation, with several projects under a license by FINMA Source: Fabre et al. (2022, September). The Virtual Currency Regulation Review: Switzerland. Switzerland continues to play a significant role in shaping the future of blockchain technology and its applications globally.

Slide 8 | www.web3-talents.io/dlt-talents / Switzerland’s Blockchain Regulation Framework ● The Swiss Financial Market Supervisory Authority (FINMA) is the main regulatory body overseeing the blockchain and cryptocurrency industry ● The Distributed Ledger Technology (DLT) Act, which came into force in August 2021, provides legal regulations for blockchain technology ● Cryptocurrencies are classified as assets or property like gold . ● The country has a favorable and attractive legal framework for crypto-assets Source: Merchant, M. An overview of the cryptocurrency regulations in Switzerland.

Slide 9 | www.web3-talents.io/dlt-talents / Liechtenstein Token Act ● Liechtenstein's Token Act, also known as the Blockchain Act, is a comprehensive regulation of the token economy. How does the Liechtenstein Token Act differ from other countries' regulations on tokens? ● The Act allows nearly any right or asset to be tokenized based on the Token Container Model ● The Act expands the token's use beyond securities to cover music rights, patents, utility coins, software rights, etc ● The Act requires new service providers to be regulated, meaning they should register with the Liechtenstein Financial Market Authority (FMA) ● It establishes measures to combat money laundering Source: Fabre et al. (2022, September). The Virtual Currency Regulation Review: Switzerland.

Slide 10 | www.web3-talents.io/dlt-talents / Blockchain Startups in Switzerland Block Green Molecule Authena Description Cryptocurrency platform that uses the DeFi blockchain to provide green crypto mining solutions based on renewable energy Software platform used to accelerate innovation in the pharmaceutical industry IoT and Blockchain platform for Product Authenticity and Traceability as a Service Founders Bastian Becker, Sebastien Hess Paul Kohlhaas, Tyler Golato Matteo Panzavolta Employees 1 to 10 11 to 50 11 to 50 Total Funding Amount $3.7 M $20.5 M $5.1 M Industry Focus Fintech, Crypto & Web3, Data & Analytics Health Tech, Fintech, Crypto & web3, Pharma Crypto & web3 Investor dao5, Darian Shirazi etc., 1kx, Protocol Labs etc Ecliptic Capital, SICTIC etc Source: https://www.seedtable.com/crypto-web3-startups-switzerland

Slide 11 | www.web3-talents.io/dlt-talents THE END.