Cryptocurrency Exchange License in Switzerland

Among jurisdictions open to blockchain-related operations, Switzerland has built a reputation for combining innovation with strict oversight. The approach has been incremental: legislators have made targeted changes rather than rewriting the entire system, which has kept the rules stable while adapting to technological change. Oversight rests with FINMA, which reviews applications, issues authorisations, and monitors abidance. Certain cantons have gone further by actively promoting the sector through local networks, tax incentives, and cooperation between market actors. Zug’s Crypto Valley Association is the most prominent example, functioning as a forum for both start-ups and established operators.

In order to sort out all the complicated nuances about the Switzerland crypto license, you should resort to the services of a specialist.

Crypto Legislation in Switzerland

The DLT Act that came into force in 2021 made amendments to various statutes to accommodate distributed ledger applications in the broader legal framework. This applies to the operation of platforms that trade tokenized rights, treatment of client holdings in insolvency, with responsibilities towards investors. A central principle is that operators will be liable for damage caused by inaccurate information or breaking the law. Oversight of systemic stability is shared between FINMA and the local national financial institution. Both can require operational and risk data from market infrastructure operators. In respect of the acceptance of funds from clients, exchanged between token and fiat, or in the event of the provision of credit, asset pooling, or settlement instruments, AML rules do apply. The most important legislative tools are the AML Act and the relevant ordinances.

Token types are classified as follows:

• Payment tokens – medium of exchange; excluded from securities status;
• Asset-backed tokens – linked to physical or financial resources, often falling under securities rules;
• Debt tokens – repayment plus interest obligations;
• Equity tokens – participation rights similar to corporate equity without repayment duties;
• Participating tokens – profit-sharing rights without repayment;
• Utility tokens – provide access to a digital platform or service; not considered securities if no investment element is present.

This classification determines which laws apply, from securities rules to collective investment oversight.

Advantages of License for Cryptocurrency Exchange in Switzerland

Obtaining a crypto license in Switzerland brings tangible benefits:

• The jurisdiction’s global standing can improve trust with banks and institutional partners;
• Language flexibility enables use of German, French, Italian, Romansh, or in some cases English;
• Cantonal tax variations allow choice of low-rate locations such as Zug;
• The local blockchain sector is dense and cooperative, with service providers and talent in close proximity;
• The perception of political and economic stability supports cross-border client acquisition.

Types of Crypto License in Switzerland

FINMA differentiates four main authorisation types relevant to digital asset platforms:

• Financial Intermediation – accept deposits up to 100 million CHF; store or trade holdings without investing them or paying interest;
• Banking – no deposit ceiling; suited to large-scale operations;
• Collective Fund Management – management of pooled structures for third parties;
• DLT Trading Facility – operates a multilateral platform for tokenised securities.

Operators outside these categories but still active in relevant markets often join an SRO, which imposes AML controls and other governance duties.

How to Get a Crypto License in Switzerland 2025

The first stage of the crypto licensing process in Switzerland is to determine if the planned model requires formal approval. The applicant is incorporated locally as an AG or GmbH, and then FINMA may provide an informal view. Formal approval procedures generally require the applicant to:

• Develop a multi-year operational plan, with financial projections under optimistic, base, and adverse scenarios;
• Compile AML procedures and compliance manuals;
• Demonstrate detailed descriptions of the premises, IT systems, and security arrangements;
• Employ at least three such-like people permanently domiciled in the country;

• Identity papers, residence permits, owners’ and directors’ proof of address;
• Provide extracts from the penal register, respectively the debt enforcement register of the nation and formerly countries of residence;
• Show proof of capital — for certain categories, a minimum of 300,000 CHF.

Registration fees start from 1,750 EUR; supervision fees from 3,500 EUR annually. Timelines are from four to six months, if documentation is complete. Prior consent may be necessary for any structural or operational changes taken after approval.

Establishment of Crypto Organization

Two common legal forms are GmbH and AG. GmbH requires 20,000 CHF capital; AG requires 100,000 CHF, with at least half paid before registration. Key steps:

1. Reserve and verify name via EasyGov;
2. Create a bank account and deposit capital;
3. Notarise founding papers;
4. Register with the Commercial Register (approx. 600 CHF fee);
5. Complete tax and social insurance enrollments;
6. Arrange premises and insurance.

Typical incorporation costs are 1,500–2,000 CHF. Documentation may need to be in an official language even if operations use English.

Taxation of Crypto Organizations

Taxation at working levels is designed threefold: by the federal, cantonal, and communal laws. The corporation tax at federal level is around 8.5% of the post-tax profit, whereas in cantonal rates, disparities are very broadly with total effective rates varying around 11% to above 21%. Among the lower cantons is Zug and among the higher is Bern.

Generally, EPS generated from token sales in crowdfunding will not be treated as taxable income. The exchange of payment tokens is exempted from VAT. Any charges for such transactions are seen in the light of providing a financial service and hence also exempted. The 35% rate of withholding tax is levied on some distributions; a stamp duty at the rate of 1% is applicable to paid-in capital over 1 million CHF.

Entities that earn most of their income outside the borders of the country may, however, be liable to a reduced effective cantonal tax of between 7.8-11%.

Relief would be made plausible on cross-border income, with slightly over double taxation treaties nearing 100.

Requirements for Reporting and Auditing

Operators must prepare annual accounts in accordance with the OR. An ordinary audit is mandatory if, for two consecutive years, two of the following are exceeded:

• Balance sheet over 20 million CHF;
• Revenue over 40 million CHF;
• Workforce averaging 250 full-time roles.

Ordinary audits cost around 4,500 CHF; limited audits about 2,500 CHF. Entities with fewer than ten staff may waive the audit if all owners agree. Records, including AML documentation, must be kept in hard copy for a decade.

Conclusion

The country’s framework for digital asset platforms is clear, detailed, and enforced consistently. Entry involves meeting substantial operational and governance standards, but the jurisdiction’s credibility and stability can outweigh the cost. For operators targeting longevity and international reach, it remains one of the more attractive options in 2025.

Is crypto trading legal in Switzerland?

Yes. It is allowed, provided AML obligations are met and authorisations are obtained where necessary.

What licenses do you need for a crypto exchange?

The category depends on the model — options include financial intermediation, banking, collective fund management, DLT trading facility, or SRO membership.

Which country is best for a crypto exchange license?

Preferred jurisdictions combine legal certainty, low risk perception, and workable costs — Switzerland, Singapore, Estonia, and the UAE are often cited.

Is Binance legal in Switzerland?

Binance can operate within regional law, though specific services and terms may change; users should verify current conditions.