Crypto License in Switzerland

For many regulated models, the applicant must operate through a Swiss legal entity and be registered in the Swiss Commercial Register.

A FinTech Licence applicant must be established as a company limited by shares, a partnership limited by shares or a limited liability company, with a registered office and business activities conducted in Switzerland.

A DLT trading facility must be incorporated under Swiss law and maintain both its registered office and head office in Switzerland.

Banks and securities firms must be effectively managed from Switzerland, while other regulated models may also require real local management and operational substance.

The company must fully disclose direct and indirect qualified participations and the individuals who ultimately control the business.

Qualified shareholders and members of strategic and executive management must have a good reputation and provide assurance that the business will be managed in a sound and proper manner.

The company’s organisation must be proportionate to the nature, scale and risks of the business and may include qualified personnel, compliance functions, internal controls and segregation of duties.

Depending on the regulatory route, the company may need local personnel, compliance resources, properly documented business processes and real operational infrastructure in Switzerland.

Portfolio managers must become members of a recognised Supervisory Organisation, which is responsible for ongoing prudential supervision.

For SRO affiliation, the main focus is on AML/CFT compliance, including customer identification, beneficial owner verification, transaction monitoring, internal procedures and suspicious activity reporting.

Members of strategic and executive management must have appropriate professional experience, good reputation and the competence required to manage the regulated business.

Qualified shareholders, directors and senior management must demonstrate that the company will be managed in a sound and proper manner.

The company must appoint responsible compliance personnel appropriate to the nature, scale and complexity of its activities.

Financial intermediaries must maintain internal AML/CFT policies and procedures designed to meet Swiss anti-money laundering requirements.

The company must identify customers and establish the identity of beneficial owners in accordance with applicable AML rules.

The business must assess ML/TF risks associated with its clients, transactions, services, and geographic exposure.

Higher-risk relationships, including PEPs and clients connected to high-risk jurisdictions, require enhanced scrutiny.

Where there are reasonable grounds to suspect money laundering or terrorist financing, the company must report the matter to the Money Laundering Reporting Office Switzerland (MROS).

FINMA-authorised institutions must maintain effective internal controls, risk management systems and appropriate segregation of duties.

Employees involved in regulated activities should receive regular training on AML/CFT compliance, procedures and internal control requirements.

Depending on the regulatory route, the business may be subject to regulatory audits and ongoing supervision by FINMA, a recognized SRO or a Supervisory Organization.

Constitutional documents, Commercial Register extract, organizational structure and information about the company’s local presence in Switzerland.

Ownership structure, qualified participations, ultimate beneficial owners, shareholders’ agreements and investment agreements where applicable.

CVs, identification documents, evidence of professional experience, good reputation and information confirming the absence of relevant conflicts of interest.

A detailed explanation of the services provided, target markets, client categories, flow of funds and crypto-assets, and the use of wallet, payment or custody solutions.

Projected income and expenses, liquidity, funding sources and evidence that the company meets the applicable capital and financial resource requirements.

Internal policies covering AML/KYC, transaction monitoring, compliance, risk management, internal controls and other regulatory procedures.

Documentation describing IT security, technology infrastructure, outsourcing arrangements, operational resilience and business continuity procedures.

Where applicable, policies covering custody, accounting, segregation and safeguarding of client funds or crypto-assets.

No universal minimum capital threshold applies to all Swiss crypto businesses. The required amount depends on whether the company operates under SRO affiliation, a FinTech License, a Portfolio Manager License, a Securities Firm License, a Banking License, or another regulatory framework.

The capital requirement is 3% of accepted public deposits and crypto-based assets held in collective custody, subject to a minimum of CHF 300,000.

A portfolio manager must maintain minimum capital of CHF 100,000, together with sufficient own funds on an ongoing basis.

A securities firm must have at least CHF 1.5 million in fully paid-up share capital.

A bank must have at least CHF 10 million in fully paid-up share capital.

Financial requirements for a DLT Trading Facility depend on the scope, complexity, and risk profile of the proposed activities, rather than a single universal capital figure.

FINMA may assess whether the applicant has sufficient liquidity and financial resources to cover operating costs and risks associated with its business model.

Applicants may need to prepare financial projections covering expected income, expenses, liquidity, funding sources, and compliance with applicable capital requirements.

FINMA authorization is subject to regulatory fees determined under the applicable FINMA fee framework. SRO or Supervisory Organization fees may also apply depending on the regulatory pathway.

The overall budget may also include audit costs, legal support, Swiss local presence, qualified personnel, compliance functions, accounting, IT infrastructure and other operational requirements.

We analyze the company’s services, transaction flows, client asset handling, token structure, and risk profile to determine whether SRO affiliation is sufficient or whether a FINMA authorization is required.

The appropriate route is selected based on the actual activity — for example, SRO affiliation, FinTech License, DLT Trading Facility License, Portfolio Manager License, or another applicable authorization.

The company structure, ownership, Swiss local presence, governance arrangements, management functions and compliance responsibilities are aligned with the selected regulatory framework.

The application package is prepared, including the business plan, financial projections, AML/KYC documentation, risk management framework, IT security policies, outsourcing arrangements and other internal procedures.

Where appropriate, the project may be discussed with FINMA or the relevant SRO before formal submission to clarify regulatory expectations and potential issues.

The applicant files the complete application package with the relevant SRO, Supervisory Organization, or FINMA, depending on the applicable regulatory pathway.

The regulator reviews the application and may request additional documents, explanations or amendments. Where required, the applicant may also need to complete a licensing or regulatory audit.

Once the company satisfies all applicable regulatory requirements, it receives the relevant FINMA authorization or SRO membership and can proceed with regulated activities within the approved scope.

The first stage is determining whether the company requires SRO affiliation, a FinTech License, DLT Trading Facility License or another FINMA authorization.

The Swiss entity, ownership structure, local presence, management, governance, and compliance functions are aligned with the selected regulatory pathway.

The applicant prepares the business plan, financial projections, AML/KYC framework, risk management policies, IT security documentation and other required materials.

Where appropriate, the project may be discussed with FINMA or the relevant SRO before formal submission to clarify the regulatory scope and expectations.

For eligible financial intermediary models, SRO affiliation may generally be completed faster than direct FINMA licensing, subject to the quality and completeness of the application.

FinTech, DLT infrastructure, and other directly supervised models generally require a longer, more detailed authorization process.

FINMA or the relevant SRO may request additional information, policy amendments, financial evidence, audit materials, or further explanations.

Once the company satisfies all applicable requirements, it receives SRO membership or the relevant FINMA authorization and may begin regulated activities within the approved scope.

Corporate income tax is levied at federal, cantonal, and municipal levels, so the effective tax burden depends on the canton and municipality where the company is incorporated and effectively managed.

The standard Swiss VAT rate is 8.1%. The VAT treatment depends on the nature of the crypto-related services, and certain financial transactions may be exempt.

Dividends and certain investment income may be subject to Swiss withholding tax at 35%, unless reduced or eliminated under an applicable double taxation treaty.

Companies must maintain proper accounting and tax records for crypto-assets, income, expenses, and transactions involving client assets.

Tax treatment also depends on where effective management, personnel and actual business operations are located.

The company must continue to comply with customer identification, beneficial owner verification, transaction monitoring and suspicious activity reporting obligations.

Where applicable, the business must maintain the required minimum capital, adequate liquidity and sufficient financial resources on an ongoing basis.

The company must maintain appropriate governance, compliance, risk management and internal control systems proportionate to its activities.

Regulated businesses must continue to manage IT security, operational risks, business continuity, and outsourcing arrangements.

Internal AML/KYC, compliance, risk management and other policies must be reviewed and updated regularly.

Depending on the regulatory framework, the company may be subject to regulatory audits by FINMA, the relevant SRO or Supervisory Organization.

FINMA, the relevant SRO or Supervisory Organization must be notified of material changes affecting the company’s activities, ownership, management, organization, outsourcing arrangements or custody of client assets.

Switzerland does not issue one universal crypto license. The company must determine whether SRO affiliation is sufficient or whether a FinTech License, DLT Trading Facility License, Portfolio Manager License, Securities Firm License, Banking License, or another FINMA authorization is required.

Many regulated models require genuine operational presence in Switzerland, including effective management, qualified personnel, office premises, compliance functions and documented business processes.

Accepting, safeguarding, collectively holding or managing client assets may move the business into a more demanding regulatory category and trigger additional capital, governance and prudential requirements.

Crypto businesses must maintain effective KYC procedures, transaction monitoring, internal controls, suspicious activity reporting and regularly updated compliance policies.

Tokenization projects and asset tokens may trigger securities, financial market infrastructure or prospectus requirements depending on the rights attached to the token.

Stablecoin projects require a separate assessment of reserves, redemption rights, tokenholder claims and the possible application of banking, collective investment or other financial regulations.

Obtaining SRO affiliation or FINMA authorization does not automatically guarantee access to Swiss banking or payment services.

Swiss regulatory status does not automatically authorize the company to provide regulated crypto or financial services in the EU, UK, or other jurisdictions.

FINMA-regulated models may require significant capital, local personnel, regulatory audits, IT infrastructure, compliance resources and professional support.

Switzerland may be less suitable for businesses seeking the fastest or lowest-cost launch, projects unwilling to establish genuine local substance, or high-risk models without a robust AML/CFT framework.