How to Get A Switzerland Crypto License?

Switzerland is one of the most popular countries in the world along with Estonia for crypto licenses, it openly encourages the potential for blockchain technology and aspires to provide an optimal environment for continual innovation.

There several are different crypto licenses available in Switzerland that are used in conjunction with a Swiss AG or GMBH company. Companies may opt for licenses from Swiss Federal Financial Market Supervisory Authority (FINMA) depending on the nature of their project.

Switzerland aims to create an environment that allow companies explore new innovative ways of doing business in the cyrpto and blockchain sectors to become a 'blockchain and fintech nation'.  The Swiss FINMA give companies that accept public money the opportunity  of not "having to comply with costly time consuming regulations."

Key Takeaways

• Swiss cryptocurrency licenses require strict compliance with FINMA regulations and specific capital requirements
• Switzerland's established regulatory framework provides clear guidelines for digital asset businesses
• The Swiss cryptocurrency ecosystem offers strong protection for both operators and investors

Overview of Switzerland Crypto

Companies seeking to conduct cryptocurrency operations in Switzerland must obtain specific licenses based on their business model, with requirements ranging from basic money transmitter licenses to full banking licenses. The process involves strict compliance measures, capital requirements, and operational standards that align with Swiss financial regulations.

Switzerland's crypto-friendly approach, combined with its political stability and robust financial infrastructure, makes it an attractive destination for cryptocurrency businesses. The country's regulatory clarity and established guidelines provide a solid foundation for companies looking to establish legitimate cryptocurrency operations.

Different types of Swiss Crypto licenses

There are currently four different types of Swiss Crypto licenses available:

• Fintech license
• Exchange licence
• Investment fund licence
• Banking licence

For more>> Switzerland as a Tax Haven

Significance in the Global Market

The "Crypto Valley" in Zug hosts more than 960 blockchain companies and employs over 5,000 professionals in the cryptocurrency sector.

Major cryptocurrency organizations like the Ethereum Foundation and Cardano have established their headquarters in Switzerland. The country ranks among the top three nations globally for crypto adoption and infrastructure.

Swiss banks actively participate in digital asset services, with institutions like Julius Baer and UBS offering cryptocurrency investment options to clients.

Advantages of Getting a Switzerland Crypto License

1. Switzerland is a pioneer of blockchain regulation since the start and has the most extensive experience in blockchain and crypto companies
2. Relevant authorities such as FINMA and SBA are approachable and encourage companies to develop personal contacts with them
3. Friendly business environment
4. Swiss government is active in encouraging the crypto environment and has issued ICO guidelines and FINMA papers
5. Crypto Valley in the canton of Zug has popular and innovative blockchain companies that enables a conducive environment for companies.
6. Low corporate tax rates
7. Low taxes in Cantons
8. Exemption from dividend tax possibilities
9. There is an enormous high-quality talent pool and the Crypto Valley Association which is dedicated to making Switzerland the leader of blockchain and crypto technologies is proactive in organizing events and communicating with the government to improve legislation
10. Crypto Valley is home to Xapo, Etherium, Tezos, and Monetas
11. Four of the 10 biggest ICOs in 2017 were incorporated in Switzerland.

12. Switzerland is one of the strongest and most stable economies and due to its ‘neutral’ stance provides great stability even in times of any regional instability 
13. With the “tax reform and AHV financing” (scheduled for 2020), companies’ tax rate for the profit tax should decrease drastically

Conditions Needed to Be Fulfilled In order to Obtain a License

Financial intermediaries who are not members of a self-regulatory organization require a license from FINMA as per the Anti-Money Laundering Act (AMLA). 

The conditions of the license are set out in Article 14 of the Anti-Money Laundering Act (AMLA). These conditions must be met before a license can be issued to a directly subordinated financial intermediary (DSFI).

A financial intermediary must fulfill the following conditions:

• It must be officially authorized to conduct business or be entered in the commercial register as a commercial undertaking.

• It must have an appropriate organizational structure and its internal regulations must comply with AMLA requirements.

• Both the organization and the people responsible for the administration must have a good reputation and be able to provide assurance of compliance with its duties under AMLA and of proper business conduct. 

• Applications must either demonstrate that applicants will meet all the licensing requirements specified in the Act or will do so immediately after authorization has been granted.

• The application must be signed by the applicant.
  • In case of applications filed by the applicant's legal representative, the application must be signed by the legal representative and a certified copy of the applicant’s person's power of attorney must also be enclosed.

    • FINMA will process the application once all documentation has been submitted correctly. If required, the applicant may be asked to furnish more information or documents in order to establish full compliance with licensing requirements.

Crypto Incorporation Information

Incorporation time

Incorporation takes around 3-4 months if all the paperwork and documents are duly filed and completed.

Minumum paid capital

The minimum paid-up capital is 300,000CHF 

Directors and Shareholders

There must be at least one shareholder and one director

Confidentiality

Details of the beneficial owner as well as any shareholders are not publicly disclosed however details of the director is publicly available.

Taxation

There are three different types of taxes, federal and canton. The federal tax rate is 7%

Each canton has its own tax rates between 11-24%. (Zug has a tax rate of 14% where a majority of the cryptos are based.

Physical presence

The company must have a registered address in Switzerland, does not need a company secretary but does require general meetings.

What are the regulatory requirements for a cryptocurrency license in Switzerland?

VASPs must maintain minimum capital requirements of 300,000 CHF. Organizations need robust anti-money laundering (AML) and know-your-customer (KYC) procedures.

Regular audits and compliance reports must be submitted to FINMA. Companies must establish risk management systems and maintain proper data protection measures.

What are the fees associated with acquiring a cryptocurrency license in Switzerland?

Initial application fees range from 50,000 to 200,000 CHF. Annual supervision fees vary based on business volume and complexity.

Additional costs include SRO membership fees and compliance audit expenses. Companies must budget for ongoing legal and consulting services.

What Documents Do You Need To Get Started?

A notarized copy of the following documents must be submitted :

1. Passport of shareholder and director
2. Proof of residential address of each shareholder and director (utility bill that is not older than 3 months can be submitted)

3. Bank statement of each shareholder and director
4. Signed and dated CV of each shareholder and director 
5. Bank reference of each director
6. Education proof for each shareholder and director
7. Two legal references for each shareholder and director
8. Proof of source of funds
9. Non-criminal record of each shareholder and director
10. Detailed business plan
11. Company manuals (corporate governance, AML/Compliance, security, IT manual, complaints, remuneration policy)

12. Apostilled company documents must be submitted if Directors and Shareholders are legal persons

What is the License Process?

1. Submit a detailed business plan, operational procedures, and risk management frameworks to FINMA.
2. Prepare financial projections and capital adequacy calculations for review.
3. The application review typically takes 6-12 months, depending on complexity and completeness of documentation.
4. Professional legal counsel and compliance experts are recommended for application preparation.

In order to get a cryptocurrency license you need:

• Collecting and submitting all documents
  • This includes all fees associated with the company and licence
• Forming a Swiss company 
  • Setting up of bank account
• Filling crypto license application
  • Application is filed together with the business plan
  • Coordinating with FINMA to ensure all documents and application is in order 

Whats Next?

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Other Popular Crypto licenses include:

Estonia Crypto Licence

Lithuania Crypto Licence