Crypto Licensing - Switzerland

About Switzerland

Switzerland is well-known for its strong and stable banking sector. Some of the world’s largest and most recognised banks, asset management organisations, and insurance companies are headquartered in the country. Swiss financial institutions have a long history of supplying consumers around the world with secure and dependable services.

Switzerland has established itself as a cryptocurrency-friendly jurisdiction. The government and regulatory bodies have taken proactive measures to encourage innovation in the bitcoin and blockchain sectors. To ensure legal certainty and protect investors, the country has created clear regulatory frameworks, such as those established by the Swiss Financial Market Supervisory Authority (FINMA).

Switzerland is located in the centre of Europe. Its 1,935km border is shared by five countries: Italy, France, Germany, Austria, and the Principality of Liechtenstein. Switzerland is separated into three geographical regions.

According to Worldometer’s elaboration of the most recent United Nations data, Switzerland’s current population is 8,833,108 as of Monday, May 1, 2023.

More than 60% of Swiss people speak German as their first language. They do not speak standard German, but rather a collection of Alemmanic dialects known as Swiss German. The Romandie, or French-speaking area of Switzerland, is the primary language.

Switzerland has a statute-based legal system that is independent of the other government branches, founded on the tradition of civil law. Except as expressly mentioned by the country’s Constitution as belonging to the federal authorities, all legislative power rests with the country’s 26 cantons.

1. Regulatory Clarity

Switzerland has taken a proactive approach to cryptocurrency regulation. Businesses benefit from a defined regulatory environment that provides legal certainty and transparency by getting a crypto licence from the Swiss Financial Market Supervisory Authority (FINMA). This transparency promotes trust and confidence among clients and investors.

2. Strong Financial Industry

Switzerland has a long history as a global financial centre. Switzerland provides a solid platform for crypto enterprises to operate and attract international clients, with a well-developed banking system, tough investor protection legislation, and a stable economy.

3. Security and privacy reputation

Both in the regular banking sector and in the crypto industry, Switzerland has a great reputation for security and anonymity. Individuals and businesses looking for a secure environment for their crypto activities will find the country’s tough data protection laws, strong cybersecurity infrastructure, and respect for privacy rights intriguing.

4. Access to Financial Services

Having a crypto licence in Switzerland allows firms to have access to traditional financial services, including as banking facilities, which may be difficult for crypto enterprises in other jurisdictions. This allows for the seamless integration of cryptocurrency and fiat currencies, making it easier to serve clients and provide comprehensive financial services.

5. Token-friendly Regulation

Switzerland has created a regulatory framework that is conducive to tokens. The country has issued token classification standards, which clarify the legal position of various types of tokens. This method promotes token economy innovation and the growth of blockchain-based projects.

6. Proximity to European Markets

Switzerland’s geographic location puts it close to key European markets. This strategic advantage enables corporate expansion throughout Europe by providing simpler access to a wide client base.

7. Skilled Workforce and Innovation

Switzerland has a highly talented and educated workforce, especially in finance, technology, and cryptography. Switzerland’s universities and research institutions contribute to an innovative culture, making it an appealing site for crypto firms seeking top talent and research collaborations.

8. International Reputation and Trust

Switzerland has a global reputation for political stability, financial honesty, and devotion to the rule of law. A Swiss crypto licence improves a company’s international reputation and fosters trust among clients, partners, and investors.

General

License: Financial Intermediary License
Timeframe for Approval: 3 to 4 months
Regulator: Swiss FINMA/SRO

Company Structure

Local Director: At least one director (cannot be legal persons and need not to be shareholders of the corporation)
Local Shareholder: At least one shareholder (no nationality restriction or residency restrictions)
Local Registered Office: Required
Local Staff: Required
Compliance Officer: Required
AML/KYC: Required
Audit: Required
Economic Substance: Required
Corporate Tax Rate: 12%
Currency: Swiss Franc (CHF)
Tax Structure: 0% Tax on Offshore Profits
Min. Paid-up Capital: 100,000 CHF
Capital Requirement: Approx. $100,000
Gov. App Fee: USD5,000
  1. Collection of documents satisfying the AML requirements
  2. Incorporation of the Switzerland company (includes provision of registered office and secretarial services)
  3. Bank account set-up
  4. Filling license application:

 

  • preparing the application forms;
  • preparing individual questionnaires for individuals and bodies corporate;
  • reviewing and amending the business plan and other policy documents forming part of the application;
  • liaising with and attending to the FINMA in respect of the applications.
  • AML/KYC Procedures
  • Security Measures
  • Compliance Officer
  • Business Plan
  • Insurance Coverage
  • External Audits
  • Data Protection
  • Business Continuity and Disaster Recovery
  • Compliance Training

Documents required by all involved individuals

(including but not limited to directors, shareholders and beneficial owners)

  • Passport copy (Notarised)
  • Utility Bill issued within the last 3 months (Notarised)
  • CV or Resume for each involved individual
  • Two professional reference letters
  • Qualifications (Notarised)

For Corporate Shareholders

  • Articles of Association in English
  • Registered office address documents (Notarised)
  • Company Register of director/s
  • Company Register of UBOs (shareholder register, or incumbency certificate, or share certificates)
  1. Form Swiss AG company
  2. Preparation and drafting of shareholder and officer agreements.
  3. Preparation and drafting of narrative business plan.
  4. Preparation and drafting of current financial statements.
  5. Preparation and drafting of 3 years financial projections.
  6. Preparation and drafting of personal financial statements for owners.
  7. Preparation and submission of application with SRO/FINMA.
  8. Preparation and drafting of responses to SRO/FINMA inquiries
  9. Identification and engagement of auditor and local director.
  10. Facilitate opening of bank accounts and payment processor
  11. Preparation and drafting of required employee compliance manual and related documentation.
  12. Preparation and drafting of AML/KYC policies and procedures.
  13. Preparation and drafting of client agreements and disclosures.