Switzerland has firmly established itself as a global leader in blockchain innovation and digital asset regulation. Known for its forward-thinking approach, the country continues to refine its legal and tax framework to support cryptocurrency businesses while maintaining strong investor protection and financial integrity. As we look toward 2025, Switzerland remains one of the most attractive jurisdictions for crypto entrepreneurs, offering a balanced mix of regulatory clarity, favorable taxation, and institutional support.
Cryptocurrency Legal Status and Regulatory Oversight
In Switzerland, cryptocurrencies and virtual assets are legally recognized as property or assets. This classification forms the foundation of the country’s regulatory framework, overseen primarily by the Swiss Financial Market Supervisory Authority (FINMA) and guided by the Swiss Federal Tax Administration (SFTA) for tax compliance.
Crypto exchanges and virtual currency platforms are treated as financial institutions under Swiss law. As such, they must comply with anti-money laundering (AML) and counter-terrorism financing (CTF) obligations, as well as consumer protection standards. While some traditional banking requirements are relaxed for crypto firms, compliance with core financial regulations remains mandatory.
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Key Regulatory Developments: The DLT Act and Beyond
A landmark achievement in Swiss crypto regulation was the passage of the Blockchain Act in September 2020. This legislation formally recognized the legality of cryptocurrency exchanges and introduced critical updates to accommodate Distributed Ledger Technology (DLT).
The DLT Act established a new category of digital assets known as DLT rights, which serve as digital equivalents of traditional securities. These rights are transferable only via blockchain and are protected even in the event of bankruptcy. The law also introduced a new licensing category for DLT trading venues, enabling multilateral trading of tokenized securities without requiring full integration with legacy financial infrastructure.
FINMA applies a “same business, same rules” principle, ensuring that blockchain-based services are regulated consistently with traditional financial activities. This technology-neutral approach fosters innovation while preserving market stability.
Token Classification Framework
In 2018, FINMA published comprehensive guidelines for Initial Coin Offerings (ICOs), defining three primary token categories:
- Payment Tokens – Used as digital currency (e.g., Bitcoin). Not considered securities but subject to AML rules.
- Utility Tokens – Grant access to a digital service or platform. Classified as securities if sold pre-launch or with investment intent.
- Asset Tokens – Represent debt, equity, or profit-sharing rights. Treated as securities under Swiss law.
Hybrid tokens combining features of multiple categories must comply with all applicable regulations. FINMA emphasizes that token classification can evolve over time, requiring ongoing legal assessment.
Licensing Requirements for Crypto Businesses
Operating a crypto-related business in Switzerland typically requires a license from FINMA, depending on the nature of the activities. The following licenses are available:
- Fintech License – Allows firms to accept public deposits up to CHF 100 million without full banking status.
- Banking License – Required for institutions accepting unlimited deposits.
- Asset Management License – For firms managing collective investment schemes.
- DLT Trading Facility License – For platforms facilitating multilateral trading of DLT securities.
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Banking and Deposit Rules
Under Swiss law, accepting public deposits generally requires a banking license. However, exemptions exist:
- Sandbox Exemption: Firms may accept up to CHF 1 million from the public without a license if funds are not interest-bearing and investors are informed of the lack of regulatory protection.
- Lightweight Banking License: Available for firms accepting up to CHF 100 million in non-interest-bearing deposits. Less stringent capital and compliance requirements apply.
These options are particularly appealing for crypto startups aiming to scale while maintaining regulatory compliance.
Anti-Money Laundering (AML) Compliance
Swiss AML regulations are governed by the Anti-Money Laundering Act (AMLA). Any entity accepting, holding, or managing third-party assets is considered a financial intermediary and must comply with AML obligations, including:
- Customer due diligence (CDD) and Know Your Customer (KYC) procedures
- Beneficial ownership verification
- Reporting suspicious transactions to the Money Laundering Reporting Office Switzerland (MLROS)
Crypto exchanges, ICO issuers, and custodians are explicitly covered under these rules. FINMA also requires intermediaries to transmit sender and recipient information for blockchain transactions equivalent to traditional wire transfers.
Taxation of Cryptocurrencies in Switzerland
Switzerland applies a clear and consistent tax regime to digital assets. Cryptocurrency holdings are subject to wealth tax, income tax, and capital gains tax, depending on the holder’s status (individual or corporate) and intent (investment or trading).
Corporate Tax Treatment
For companies issuing or holding crypto assets:
- Debt Tokens: Treated as bonds; interest payments are tax-deductible.
- Equity Tokens: Considered derivative financial instruments; profits distributed to token holders may be tax-free if certain conditions are met.
- Utility Tokens: Revenue from sales is taxable income, with reserves deductible if linked to project development.
Corporate income tax rates range from 12% to 21%, varying by canton. Zurich, home to the Crypto Valley in Zug, offers some of the lowest rates at approximately 11.9%.
Capital Gains and Withholding Tax
- Capital gains on professional trading are taxable.
- Withholding tax (35%) applies to interest payments on debt tokens.
- Stamp duty is generally not levied on token issuance but may apply to secondary market transactions involving Swiss-based intermediaries.
Setting Up a Crypto Company in Switzerland
Switzerland remains a top destination for launching blockchain ventures due to its stable legal environment and supportive ecosystem.
Business Entity Options
Common corporate structures include:
- GmbH (LLC): Minimum capital CHF 20,000; suitable for SMEs.
- AG (Corporation): Minimum capital CHF 100,000; ideal for larger ventures.
- KmAG (Limited Partnership): Flexible structure with no minimum capital.
All entities must have a registered office in Switzerland, employ local staff, and appoint a Swiss-based legal representative.
Key Steps to Incorporation
- Reserve a unique company name via EasyGov.
- Open a Swiss bank account and deposit minimum capital.
- Draft articles of incorporation with a notary.
- Register with the Commercial Register.
- Apply for FINMA licensing if applicable.
- Register for federal, cantonal, and municipal taxes.
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Frequently Asked Questions
Q: Are cryptocurrencies legal in Switzerland?
A: Yes, cryptocurrencies are recognized as assets and are fully legal for trading, investment, and business use.
Q: Do I need a license to operate a crypto exchange in Switzerland?
A: Yes, most exchanges require FINMA authorization unless they qualify for an exemption (e.g., sandbox rules).
Q: How are ICOs regulated in Switzerland?
A: ICOs are assessed based on token classification. Asset tokens are treated as securities and require compliance with financial market laws.
Q: Is Switzerland still considered crypto-friendly in 2025?
A: Absolutely. The government continues to support blockchain innovation through favorable regulations and tax policies.
Q: What is the Crypto Valley?
A: Located in Zug, it’s a globally recognized hub for blockchain startups, supported by the Crypto Valley Association.
Q: Are capital gains from crypto taxed in Switzerland?
A: For individuals, private capital gains are generally tax-free. For companies, gains from trading activities are taxable.
Conclusion
As of 2025, Switzerland maintains its position as a leading jurisdiction for cryptocurrency innovation. With a robust regulatory framework centered on the DLT Act, clear tax guidelines, and proactive government support, the country offers an ideal environment for compliant and scalable crypto ventures. Whether launching an exchange, issuing tokens, or building a blockchain startup, Switzerland provides the legal certainty and business infrastructure needed to succeed in the global digital economy.