Cryptolicense in Switzerland: Secure, Reliable, Respectable

Frequently Asked Questions

• What types of cryptolicenses are there in Switzerland, and how do they differ?

  Switzerland offers several types of cryptolicenses, each of which regulates a specific type of activity:

  • Cryptocurrency trading license: Allows companies to buy and sell cryptocurrency on their own behalf or on behalf of clients.
  • Cryptocurrency exchange license: Allows companies to exchange one cryptocurrency for another or for fiat currency.
  • Cryptocurrency custody license: Allows companies to provide secure cryptocurrency storage services for clients.
  • ICO license: Regulates initial coin offerings (ICOs) and the issuance of tokens.
  • Asset management license: Allows companies to manage cryptocurrency assets on behalf of clients.
  • Licenses for other activities: There are also licenses for other types of activities related to cryptocurrencies, such as providing payment services or issuing stablecoins.
• Who regulates the cryptocurrency market and issues cryptolicenses in Switzerland?
  The main regulator of the cryptocurrency market in Switzerland is the Swiss Financial Market Supervisory Authority (FINMA). It is responsible for issuing cryptolicenses, supervising the activities of licensed companies, and developing the regulatory framework for the cryptocurrency industry.
• How long does the process of obtaining a cryptolicense take, and what is its cost?
  The process of obtaining a cryptolicense in Switzerland can take from several months to a year, depending on the complexity of the project, the company's readiness to meet the requirements, and the workload of FINMA. The cost of the process includes government fees, payment for the services of consultants, and other expenses related to the preparation of documents and the implementation of necessary procedures.
• What are the benefits of a cryptolicense in Switzerland for businesses?

  A cryptolicense in Switzerland provides several benefits for businesses:

  • Legal status: the company receives the right to legally operate in the Swiss cryptocurrency market, which increases its credibility with customers and partners.
  • Access to banking services: licensed companies can open bank accounts in Swiss banks, which facilitates financial transactions and ensures business stability.
  • Improved reputation: a cryptolicense indicates that the company meets the high standards of the Swiss financial market, which attracts investors and promotes business development.
  • Access to international markets: Switzerland is a recognized financial center, allowing licensed companies to expand their activities internationally.
• What taxes do cryptocurrency companies pay in Switzerland?
  Cryptocurrency companies in Switzerland are subject to corporate tax, capital gains tax, withholding tax, and other taxes, depending on the specifics of their activities and the canton of registration. Tax rates may vary in different cantons, so it is important to consider this when choosing a place to register a company.
• Is it possible to obtain a cryptolicense for conducting an ICO in Switzerland?
  Yes, it is possible to obtain a cryptolicense for conducting an ICO in Switzerland. FINMA has developed special requirements for ICOs, which include the mandatory publication of an issue prospectus, AML procedures, and other measures to protect investors.
• What documents need to be submitted to apply for a cryptolicense?

  To apply for a cryptolicense at FINMA, you must provide the following documents:

  • Company incorporation documents, including the memorandum of association and articles of association.
  • Business plan describing the company's activities, target audience, products and services, development strategy, and financial forecasts.
  • Information about the company's management and employees, including their resumes, copies of passports, and confirmation of qualifications.
  • Description of AML/CFT procedures, including policy, procedures, and control measures.
  • Other documents that may be required by FINMA depending on the specifics of the company's activities.
• What opportunities does obtaining a cryptolicense in Switzerland open up for foreign companies?
  Obtaining a cryptolicense in Switzerland opens up a wide range of opportunities for foreign companies. Firstly, it is the legalization of activities in one of the most stable and developed financial markets in the world. Secondly, it increases trust from customers and partners, as the Swiss cryptolicense is a sign of reliability and compliance with high standards. Thirdly, it provides access to the Swiss banking system, known for its stability and security. In addition, a cryptolicense in Switzerland allows attracting investments from Swiss and international investors, as well as expanding business to other countries of the European Union.
• Which cantons in Switzerland are considered the most attractive for obtaining a cryptolicense and why?
  The most attractive cantons for obtaining a cryptolicense are Zug (known as "Crypto Valley") and Geneva. Zug is famous for its favorable regulation, low taxes, and active support of blockchain projects. Geneva, in turn, attracts companies with a developed financial infrastructure, the availability of qualified specialists, and proximity to other European financial centers.
• What are the requirements for managers and employees of companies seeking to obtain a cryptolicense in Switzerland?
  Managers and employees of companies applying for a cryptolicense must have an impeccable reputation, proven experience in the financial or technological field, as well as the necessary knowledge in the field of cryptocurrencies and blockchain. FINMA also requires that at least one member of the board of directors and the anti-money laundering officer (MLRO) be residents of Switzerland.
• What security measures are companies that have received a cryptolicense in Switzerland obliged to implement to ensure the safety of client assets?
  Companies that have received a cryptolicense are required to implement state-of-the-art security measures to protect client assets. This includes the use of hardware wallets for cold storage of cryptocurrency, multi-factor authentication, data encryption, regular security audits, and cyber risk insurance. Companies must also have clear procedures for responding to security incidents and informing customers about potential threats.
• How should companies that have received a cryptolicense in Switzerland comply with the rules on combating money laundering (AML) and terrorist financing (CFT)?
  Compliance with AML/CFT rules is one of the key requirements for obtaining and maintaining a cryptolicense in Switzerland. Companies must conduct customer identification and verification (KYC), monitor transactions for suspicious activity, report suspicious transactions to MROS (the Money Laundering Reporting Office Switzerland), and conduct employee training on AML/CFT issues.
• What types of activities with cryptocurrencies remain prohibited in Switzerland even with a cryptolicense?
  Despite having a cryptolicense, some types of activities with cryptocurrencies remain prohibited in Switzerland. These include anonymous transactions, operations using mixers (services for mixing cryptocurrencies), and other actions aimed at concealing the origin of funds or circumventing AML/CFT requirements.
• How should companies that have received a cryptolicense in Switzerland interact with FINMA?
  Companies with a cryptolicense are required to maintain an ongoing dialogue with FINMA. This includes regular reporting on their activities, notification of any changes in the company structure or services provided, and prompt response to requests and recommendations from the regulator.
• What changes in cryptocurrency regulation, including requirements for obtaining a cryptolicense, are expected in Switzerland in the near future?
  The Swiss government and FINMA are actively working on improving the regulatory framework for cryptocurrencies. It is expected that in the near future, new laws and regulations will be adopted that will clarify the requirements for obtaining a cryptolicense, strengthen measures to combat money laundering and terrorist financing, and create more favorable conditions for the development of innovative cryptocurrency projects.
• What specific opportunities for business development does obtaining a cryptolicense in Switzerland open up?
  A cryptolicense in Switzerland opens up many opportunities for business development. Companies can attract investments from Swiss and international investors, expand their customer base, enter new markets, cooperate with traditional financial institutions, and participate in the development of new products and services based on blockchain.