Switzerland: A FinTech Legal: Blockchain & Cryptocurrencies Overview

Swiss Regulatory Environment

As regards the cross-border market access to Switzerland, Swiss regulation takes a liberal approach and allows the provision of banking and investment services, asset management services as well as services of a financial intermediary for anti-money laundering (AML) purposes on an inbound cross-border basis to Switzerland without Swiss licensing requirements, as long as the bank, investment firm or other services provider does not establish a presence in Switzerland (through a branch or representation office) and the firm does not otherwise engage persons or third parties in Switzerland leading to the same result (eg, through a de facto branch). The Swiss rules therefore follow a territorial approach in this respect. However, to the extent that the activities conducted in Switzerland are financial services in the sense of the Swiss Financial Services Act (FinSA) directed to Swiss clients, this is subject to compliance with the relevant point of sale and organisation obligations and the obligation to register front office staff members with a client advisors registry in certain circumstances, depending on the client base that is being approached for the relevant services.

As regards the content and the application of Swiss regulation, the Swiss approach generally follows the principle of “same business, same risks, same rules”. Therefore, the regulatory framework for financial institutions and banks also applies to fintech companies and their business models, to the extent the services are the same. Having said that, the Swiss legislature adopted some sector-specific rules for fintech companies and crypto-asset providers. We are looking at three such sector-specific rules in this brief overview, covering the following: (i) the Swiss framework for tokenisation and crypto-asset investment products, (ii) crypto-asset services and (iii) stablecoins and payment instrument institutions.

These sector-specific rules will become even more relevant in the near future given that the regulatory framework for fintech businesses is in the process of being updated with a draft bill (the “Bill”) published in October 2025, aiming at aligning the Swiss regulation of stablecoins and crypto-asset service providers with international regulatory developments.

Tokens, tokenisation and crypto-asset investment products

Since 2018, FINMA has categorised crypto-assets for regulatory purposes, distinguishing between cryptocurrencies/payment tokens, utility tokens and asset tokens. While cryptocurrencies and utility tokens only fall within the scope of the Swiss anti-money laundering regulations, asset tokens may also qualify as financial instruments and/or securities, falling within the regulatory framework applicable to financial instruments and/or securities.

The Bill will supplement the current token categorisation by introducing “Swiss stablecoins” and “trading crypto-assets” as additional token categories. Swiss stablecoins are designed and regulated as means of payment. Trading crypto-assets are structured as a fallback category encompassing, in particular, cryptocurrencies and stablecoins that do not qualify as Swiss stablecoins.

In addition, the Swiss legislature introduced in 2021 so-called distributed-ledger-technology securities (DLT securities) into Swiss civil law. DLT securities provide the legal basis for tokenising assets by ensuring that the rights attached to a DLT security can only be transferred by transferring the relevant token in accordance with the rules of the relevant blockchain. It is also possible to issue DLT securities whose terms and conditions are governed by a different law, provided that the form and transfer of tokens are governed by Swiss law.

Finally, Switzerland is home to an active ecosystem of financial services providers that have developed traditional financial instruments offering exposure to individual crypto-assets, baskets of crypto-assets or DeFi-related investment strategies. These financial instruments are usually structured as tracker certificates, actively managed certificates (AMCs) and exchange-traded products (ETPs) and benefit from a flexible regulatory environment allowing the issuance and trading on a Swiss trading venue of innovative financial instruments.

Crypto-asset service providers

Currently, Swiss service providers offering custodial wallet and staking services for crypto-assets, and/or trading, brokerage and asset management services for payment or utility tokens (but not for asset tokens that qualify as financial instruments) fall within the remit of the Swiss anti-money laundering regulation only. They do not require a licence from FINMA and are not subject to prudential supervision. Consequently, these service providers benefit from a light regulatory environment. In respect of custodial staking services, FINMA defined in its Guidance 08/2023 of 20 December 2023 as a key requirement that any staked crypto-assets have to be kept immediately available for the clients to avoid triggering a bank licence requirement or the staked assets being considered on-balance sheet subject to capital requirements of a (regulated) service provider. In addition, further requirements for staking services apply, which depend on whether the staking service is offered as direct staking or via a third-party service provider.

In an effort to align the Swiss regulation more closely with the crypto-asset service provider (CASP) licence under Regulation (EU) 2023/1114 (MiCAR), the Bill introduces a new licence for crypto institutions for providers of custodial wallets, brokers, market makers and operators of an organised trading facility. In addition, the Bill introduces conduct and documentation obligations for service providers of certain crypto-assets that are modelled on the conduct and documentation obligations applying to financial service providers.

Stablecoins and payment instrument institutions

Currently, there is no specific regulation on stablecoins. However, FINMA provided guidance on the regulatory classification of stablecoins and on how the Swiss anti-money laundering regulations apply to Swiss issuers of stablecoins. In particular, FINMA stipulated in its Guidance 06/2024 of 26 July 2024 a restrictive whitelisting requirement for acquirers of stablecoins in secondary market transactions issued by Swiss issuers. Also, the issuance of stablecoins typically involves the acceptance of deposits from the public, which requires a bank license unless the deposits are guaranteed by a bank. In this case, an issuer will only fall within the scope of the Swiss anti-money laundering regulation.

Going forward, the Swiss legislature proposed in the Bill the introduction of Swiss stablecoins as a specific sub-category of asset tokens issued by FINMA-licensed payment instrument institutions which are designed and regulated as a means of payment. As currently proposed, Swiss stablecoins would be similar to e-money tokens under MICAR and would have to reference a single state-issued fiat currency. Moreover, the assets backing the tokens must be safe-kept either as deposits with a Swiss bank or as high-quality liquid assets (HQLA) with short-term maturity.

The Bill introduces the requirement that Swiss stablecoins will have to be issued by a firm licensed as a payment instrument institution, which is the replacement of the current fintech licence (also known as “bank licence light”). Payment instrument institutions are allowed to accept non-interest-bearing “client money” from its customers – eg, for the purpose of issuing Swiss stablecoins or providing other payment services. Unlike for fintech licence holders, there will no longer be a cap on the permitted amount of “client money” of CHF100 million.