Swiss Crypto-Friendly Framework for Businesses: How to Legally Operate in Switzerland

Switzerland isn't just about chocolate and watches anymore. It’s become one of the most predictable, clear, and business-friendly places in the world to run a crypto company. If you're thinking about launching a blockchain startup, running a crypto exchange, or issuing tokens, Switzerland offers something most countries don’t: legal clarity.

Why Switzerland? It’s Not Just Tax Havens

Many assume Switzerland is just another offshore haven for crypto. That’s wrong. It’s not about hiding money. It’s about operating openly under rules that actually make sense.

The Swiss Financial Market Supervisory Authority, known as FINMA, has spent nearly a decade building a framework that doesn’t block innovation but still protects users. Unlike the EU, which rolled out MiCA - a massive, one-size-fits-all regulation - Switzerland took a different path. They looked at each crypto activity and asked: What’s the actual risk? Then they matched the rules to that risk.

This means if you’re running a simple wallet service or a tokenized asset platform, you don’t get buried under the same red tape as a bank. You get a license that fits your business. And that’s rare.

The Four Types of Crypto Licenses in Switzerland

To legally operate in Switzerland, you need to apply for one of four FINMA licenses. Each is tied to what your business actually does.

• Fintech License: This is the most common entry point. You can accept crypto deposits up to CHF 100 million, but you can’t pay interest or invest the funds. No banking license needed. As of end of 2024, only five firms held this license - but dozens more are in the pipeline.
• Exchange License: If you run a platform where people trade crypto for fiat or other crypto, you need this. You must follow strict AML rules, keep records for 10 years, and report suspicious activity.
• Investment Fund License: Needed if you’re pooling investor money into crypto assets, like a crypto ETF or fund. FINMA treats these like traditional funds, with full disclosure and audit requirements.
• Banking License: Only for firms that lend crypto, pay interest, or hold customer funds as a bank would. This is the toughest and most expensive. Few crypto firms go this route unless they’re planning to offer full banking services.

You don’t need to be Swiss to get one. But you do need a Swiss legal entity - either a GmbH (LLC) or an AG (stock corporation). Most startups pick the GmbH. It’s cheaper, faster, and easier to manage.

Anti-Money Laundering: The Non-Negotiable

Switzerland has some of the strictest AML rules in the world - and they apply to crypto companies too.

Every business dealing with crypto must:

• Verify the identity of every customer (KYC)
• Identify the real owner behind every account (beneficial ownership)
• Monitor all transactions for unusual patterns
• Report anything suspicious to the Money Laundering Reporting Office Switzerland (MROS)

And here’s the kicker: Switzerland implemented the Travel Rule before the FATF even recommended it. That means if you send crypto worth over CHF 1,000 to another service, you must send the sender’s and receiver’s names and IDs along with the transaction. No exceptions.

Most crypto firms hire third-party KYC providers like Onfido or Jumio to handle this. Doing it manually? Not feasible. The penalties for getting it wrong include fines up to CHF 5 million and criminal charges.

Stablecoins: The Gray Zone

Stablecoins are the wild card. They’re supposed to be tied to the Swiss franc or US dollar. But in Switzerland, there’s no specific law for them.

FINMA doesn’t say “no.” They say: “Show us how this works.” If your stablecoin acts like a deposit, you’ll need a banking license. If it’s more like a tokenized asset, you might qualify for a fintech license. Some issuers try to avoid licensing by using bank guarantees - but FINMA has warned this creates hidden risks for both the issuer and the bank.

In 2024, FINMA released new guidance saying stablecoins must be backed 1:1, fully audited, and redeemable on demand. If you’re launching one, expect scrutiny. No shortcuts.

Taxes: No Crypto-Specific Taxes, But Still Payable

Here’s where Switzerland really shines.

There’s no digital service tax. No capital gains tax on personal crypto holdings. No special crypto VAT. You pay income tax on business profits, and corporate tax rates vary by canton - from 12% in Zug to 21% in Zurich. That’s still lower than most of Europe.

Personal investors? If you trade crypto as a hobby, you don’t pay tax on gains. If you trade as a business? Then you pay income tax. The line is blurry, but the tax authorities look at frequency, volume, and intent.

Most crypto firms set up in Zug or Geneva. Zug has the lowest corporate tax rate and the most crypto-friendly local government. It’s nicknamed “Crypto Valley” for a reason.

Who’s Already Here? The Network Effect

You don’t have to guess if this works. Look at who’s already based in Switzerland.

Ethereum’s core development team operates out of Zurich. Solana’s legal entity is registered in Zug. Tezos chose Switzerland for its foundation. Even major DeFi protocols like Aave and Chainlink have Swiss subsidiaries.

Why? Because they need predictability. They need to know that next year’s regulation won’t wipe out their business model. Switzerland gives them that.

And it creates a flywheel: more companies come in → more lawyers, accountants, and compliance experts specialize in crypto → more startups find it easier to launch.

What About the EU? Do You Need MiCA Too?

Switzerland isn’t in the EU. But if you serve EU customers, you still have to follow MiCA.

That means if you’re a Swiss-based exchange offering services to Germans or French citizens, you need to comply with both Swiss rules and MiCA. It’s double work - but manageable.

Most firms handle it by building their systems to meet the stricter standard. MiCA’s requirements for custody, transparency, and disclosure are often higher than Switzerland’s. So if you’re compliant with MiCA, you’re usually compliant with Switzerland too.

What You Need to Do Next

If you’re serious about setting up in Switzerland:

1. Choose your business model - exchange, wallet, fund, or token issuer?
2. Register a GmbH or AG in a canton like Zug or Zurich.
3. Hire a Swiss legal advisor who specializes in crypto regulation.
4. Set up your KYC/AML system with a certified provider.
5. Submit your license application to FINMA with detailed documentation on your tech, team, and risk controls.
6. Plan for 6-12 months of review time. FINMA doesn’t rush approvals.

Don’t try to cut corners. The Swiss don’t tolerate gray areas. But if you play by their rules, they’ll give you one of the most stable, respected, and long-term-friendly environments for crypto in the world.

What Happens in 2026?

The Basel Committee’s new rules on cryptoasset exposures go live in January 2026. Swiss banks will have to treat crypto like high-risk assets - meaning they’ll be more cautious about working with crypto firms.

That could make it harder to open bank accounts. But it also means the Swiss crypto industry will be forced to mature. Firms that survive will be the ones with real compliance, real audits, and real transparency.

This isn’t a free-for-all. It’s a filter. And the ones that make it through? They’ll be the leaders for the next decade.