01
Crypto regulation in Switzerland: key points
- It is not the token itself that is regulated, but the activity carried out with it.
- Trading payment tokens for third parties may trigger a requirement to register with a self-regulatory organisation.
- Once certain thresholds are exceeded for omnibus custody, a fintech or banking licence is required.
- Asset tokens that qualify as securities are subject to the same obligations as traditional financial instruments.
02
Do I need authorisation for utility tokens?
No. Activities involving utility tokens are not automatically unregulated; their function, structure and any additional services provided are decisive. Because pure utility tokens merely provide digital access to an application or service, Swiss financial market rules generally do not apply to them.
03
What obligations are triggered by trading payment tokens?
Anyone who holds, transfers or trades payment tokens for third parties generally needs anti-money laundering affiliation with a self-regulatory organisation (SRO). This process is straightforward and involves a manageable amount of work.
A fintech or even a banking licence becomes necessary only when payment tokens are held in omnibus custody and certain thresholds are exceeded. Numerous exemptions often make it possible to avoid these more demanding licensing procedures. Spot cryptoassets must also be assessed separately under anti-money laundering law, with regard to the custody structure and for any potential classification of the activity under FinIA or FinSA; there is no blanket exemption.
04
How are asset tokens that qualify as securities treated?
Asset tokens that qualify as securities or financial instruments are subject to the same rules as traditional securities and financial instruments — they receive no special treatment merely because they are tokens. If an asset token instead represents only ownership of a physical object, the obligations follow that object. If, for example, anti-money laundering obligations apply to the underlying physical asset, they also apply to the token representing it.
05
What applies to services provided without an intermediary?
Direct access to a service — for example through a wallet or website without an intermediary — is attributed to the service provider. Whether regulatory obligations arise is assessed by considering all activities offered. Under FINMA practice, the content of a website alone may go so far as to constitute public advertising or even a public offering of financial instruments or financial services.
Where a service is provided to end clients through a third party, each party involved must comply with the rules applicable to its own activity; responsibility cannot simply be shifted to the distribution partner. Providers should nevertheless verify that their distribution partners comply with the applicable rules, not least to avoid reputational and legal risks.
06
Frequently asked questions
Do I need authorisation to trade Bitcoin for my own account? No. Proprietary trading for one’s own account generally does not trigger an authorisation requirement; the issue becomes relevant when activities are performed for third parties.
What does “omnibus custody” mean? It means that cryptoassets belonging to several clients are held together rather than being allocated separately to each client. Above certain volumes, this triggers more extensive authorisation requirements.
Do the same rules apply to cryptoasset management as to trading? Pure asset management and trading activities involving spot cryptoassets are generally not additionally regulated as long as no accompanying financial products are involved.
Who is responsible if I distribute through a third-party provider? Primarily the third-party provider itself, but you should verify its compliance in your own interest.
Can a website be relevant from a regulatory perspective? Yes. Its content and design may constitute advertising or a public offering and thereby trigger prospectus, information or conduct obligations; whether authorisation is also required depends on the underlying activity.
Primary sources