Regulation of Cryptocurrency in Switzerland

Since 2016, Switzerland has actively endorsed cryptocurrencies for payments, securing a front-line position in the financial domain with a focus on blockchain and cryptographic innovation. Holding a payment crypto license in Switzerland appeals to entrepreneurs globally due to the nation’s supportive stance and progressive regulations on crypto. With vital organizations like the Red Cross and WTO within its borders, Switzerland not only attracts tourists but also serves as a thriving hub for crypto-focused businesses, making it a favored destination for investors. The country, a nexus for global blockchain centers, champions cryptocurrency use in various cities, aiming to fortify its status as a principal player in the international crypto arena.

Understanding the Regulations on Cryptocurrency Trading in Switzerland

FINMA (Swiss Financial Market Authority) regulates virtual currencies and digital assets, such as Defi. All cryptocurrency exchanges become legal after obtaining a license. FINMA issues four crypto licenses to firms registered as Swiss AG or GMBH companies, depending on the nature of the blockchain project:

  1. Fintech license.
  2. Exchange license.
  3. Investment fund license.
  4. Banking license.

Everyone is required to comply with the Anti-Money Laundering Act (AMLA), which has been recognized by the FATF (Financial Action Task Force on Money Laundering). More than 1000 cryptocurrency and blockchain companies have been attracted by Switzerland’s favorable regulation and tax laws. Among these companies are Ethereum, Solana, and Tezos. Such a startup-friendly environment helps digital innovation. In conclusion, Switzerland is an ideal location for crypto businesses and cryptocurrency services firms, which is in line with national green finance initiatives.

The Emergence of the Swiss Cryptocurrency and the Blockchain Law

The Swiss Blockchain Act, which came into force on August 1, 2021, offers a legal framework for cryptocurrency trading and promotes the development of the blockchain business ecosystem. In addition, the law supports technological neutrality and provides legal certainty, creating favorable conditions for blockchain companies. A license for DLT trading systems has been introduced under the supervision of FINMA, focusing on:

  • Integrity of the Swiss financial center.
  • Transparent taxation of cryptocurrencies.
  • Financial stability.

The “Swiss Cryptocurrency Valley” has been created, in which numerous players in this field of activity operate. Diem (formerly Libra) and the Ethereum Foundation have strengthened the country’s position as a rapidly developing cryptocurrency hub in Europe. Switzerland is actively developing global standards, adapting legislation, reducing crypto risks, eliminating potential financial and legal vulnerabilities, and providing security.

Why You Should Entrust Your Company to Prifinance Professionals

Prifinance offers support and expert assistance for projects operating in the cryptocurrency industry. The company’s specialists have extensive knowledge and experience, thanks to which they can help clients solve such complex issues as:

  • Technical aspects
  • Legal support
  • Marketing
  • Organization of the structure

In addition, Prifinance will help you obtain a license to exchange cryptocurrencies in Switzerland. A license is becoming a necessary requirement for business operation in the context of strict regulation in the field of cryptocurrencies and blockchain technologies.