Switzerland crypto license regulation

Switzerland is among the most suitable countries to register a crypto exchange or crypto company. Crypto valley – is a place that is worth considering due to the low taxes compared to other cantons in this country. To provide services related to virtual assets, a cryptocurrency license must be obtained from FINMA. A key requirement for obtaining it is that the exchange/company should conduct an expanded comprehensive audit of AML (anti-money laundering) and CFT (anti-financial fraud). Strict KYC (Know Your Client) checks must be followed in relation to AMLA (Anti-Money Laundering Act)

The importance of Switzerland crypto license regulation

FINMA regulates

this activity by dividing the issued tokens into three categories:

Payment: a synonym for cryptocurrency (typically, the provider of services is required to obtain a license of a financial intermediary);


Tokens designed, for example, to provide digital access to an application or service (generally no licensing requirements apply, but in some cases such tokens may be treated as securities);

Asset tokens:

 heir function is similar to shares and bonds (typically they are licensed to trade in securities).

The main feature of Switzerland crypto license regulation

Switzerland crypto license regulation is carried out by the federal financial markets supervisory authority (FINMA) through the regular publication of manuals in a particular sphere of crypto business. FINMA issues licenses to the companies and organizations under its supervision, monitors compliance by the regulated institutions with the necessary laws, regulations, directives and regulations.

Procedure of obtaining a crypto license in Switzerland

To obtain a crypto license in Switzerland, the following steps must be taken:

Collection of documents that meet the requirements of AML. Registration of a Swiss company (includes confirmation of the registered office). The company must be registered either as Swiss AG (Public limited company) or as Swiss GMBH (Limited liability company). Opening a Bank Account. Completion of the application for licensing (preparation of application forms, individual questionnaires for individuals and legal entities, review and amendment of the business plan and other policy documents that are part of the application, communication with FINMA regarding applications). Registration of GMBH in Switzerland requires the deposit of min. of the authorised capital of CHF 20,000. In this case, the shareholder is listed in the public commercial register, while the higher mines. Authorized capital of 100,000 Swiss francs is required for a public limited liability company (AG), where the lists of shareholders may be closed. The company must have at least one shareholder and one director.

Taxation of crypto license in Switzerland

Corporate income tax is levied at both the federal and municipal and cantonal levels. The federal effective tax rate is 7.83%. Each canton has its own tax legislation and collects cantonal income and capital taxes at different rates. The cumulative effective tax rate ranges from 11.5% to 24.2%, depending on the place of incorporation of the company in Switzerland. Under certain conditions, companies with predominantly foreign commercial activities may have cantonal tax exemptions or exemptions and are taxed at an effective rate of 7.83 to 11 per cent on foreign income.