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Knowledgebase
Start a Cryptocurrency Company in Switzerland
Alex Buri, Off-Counsel
18 April, 2025
Table of Contents
1. How to Open a Cryptocurrency Company in Switzerland: Legal Path and Strategic Considerations
2. Choosing a Legal Entity Type
3. Licensing and Regulatory Readiness
4. Quick Facts: Establishing a Crypto Company in Switzerland
5. Virtual Asset Service Providers (VASPs) in Switzerland: Licensing and AML Compliance
6. Licensing Options for VASPs in Switzerland
7. Key Compliance Requirements for VASPs
8. Token Classification and ICO Regulation by FINMA in Switzerland
9. Legal Requirements for ICOs and Token Issuance
10. Ongoing Obligations After ICO Completion
11. Accounting, Taxation, and Regulatory Reporting for Crypto Companies in Switzerland
12. VAT and Taxation Guidelines
13. Regulatory Reporting and Ongoing Compliance
14. Growth Outlook and Strategic Opportunities in the Swiss Crypto Sector
15. FAQ – Frequently Asked Questions about cryptocurrency company in Switzerland
2. Choosing a Legal Entity Type
3. Licensing and Regulatory Readiness
4. Quick Facts: Establishing a Crypto Company in Switzerland
5. Virtual Asset Service Providers (VASPs) in Switzerland: Licensing and AML Compliance
6. Licensing Options for VASPs in Switzerland
7. Key Compliance Requirements for VASPs
8. Token Classification and ICO Regulation by FINMA in Switzerland
9. Legal Requirements for ICOs and Token Issuance
10. Ongoing Obligations After ICO Completion
11. Accounting, Taxation, and Regulatory Reporting for Crypto Companies in Switzerland
12. VAT and Taxation Guidelines
13. Regulatory Reporting and Ongoing Compliance
14. Growth Outlook and Strategic Opportunities in the Swiss Crypto Sector
15. FAQ – Frequently Asked Questions about cryptocurrency company in Switzerland
How to Open a Cryptocurrency Company in Switzerland: Legal Path and Strategic Considerations
Switzerland has become one of the world’s most attractive destinations for entrepreneurs looking to establish cryptocurrency ventures. Renowned for its stable political and financial system, business-friendly legislation, and strong legal protection, the country—particularly the Canton of Zug, also known as Crypto Valley—has evolved into a European hub for blockchain innovation and crypto finance.
Unlike some jurisdictions that rely on rigid and crypto-specific legislation, Switzerland has adopted a technology-neutral approach. This means there is no single “crypto law,” but digital asset companies are instead governed by existing financial, civil, and commercial laws. The Swiss Financial Market Supervisory Authority (FINMA) serves as the principal regulator overseeing activities related to digital assets, anti-money laundering (AML), and financial market integrity.
Unlike some jurisdictions that rely on rigid and crypto-specific legislation, Switzerland has adopted a technology-neutral approach. This means there is no single “crypto law,” but digital asset companies are instead governed by existing financial, civil, and commercial laws. The Swiss Financial Market Supervisory Authority (FINMA) serves as the principal regulator overseeing activities related to digital assets, anti-money laundering (AML), and financial market integrity.
Choosing a Legal Entity Type
Before launching a crypto business in Switzerland, entrepreneurs must select an appropriate legal structure.
The most common types are:
- Stock Corporation (AG) – This is the preferred form for larger-scale crypto projects. It allows the issuance of shares, easier access to capital markets, and is the legal form most often used by firms applying for FINMA licenses.
- Limited Liability Company (GmbH) – Suitable for smaller crypto businesses, the GmbH structure offers flexibility but may face constraints if the company wishes to apply for licensing or attract institutional investors.
Many cryptocurrency companies choose the AG in Switzerland structure due to its credibility and alignment with FINMA licensing requirements.
Each legal form has specific formation requirements:
- AG requires a minimum capital of CHF 100,000, of which CHF 50,000 must be paid in at the time of incorporation
- GmbH requires a minimum capital of CHF 20,000, fully paid in at the time of registration
- At least one Swiss-resident director is required for all company types
- A Swiss office address must be maintained
Foreign founders typically appoint a local fiduciary or legal firm to act as the company’s representative and handle incorporation and regulatory filings.In some cases, a crypto firm may also be structured as a Swiss Holding Company to benefit from dividend tax exemptions and ownership consolidation.
Licensing and Regulatory Readiness
Crypto companies intending to offer services such as token issuance, digital asset exchange, custody, or portfolio management may be required to obtain a license from FINMA.
Key licenses include:
- Fintech License – For firms accepting crypto deposits up to CHF 100 million without interest payments
- Banking License – For firms engaged in full-scale crypto banking or providing interest-bearing accounts
- Securities Dealer License – For businesses trading tokenized assets on behalf of clients
The licensing process can take 4 to 6 months and includes submission of:
- A detailed business plan and financial forecasts
- AML policy and internal controls documentation
- Risk management strategy
- Proof of sufficient paid-in capital
- Technical descriptions of digital asset infrastructure
Quick Facts: Establishing a Crypto Company in Switzerland
Aspect | Details |
Regulatory authority | FINMA (Swiss Financial Market Supervisory Authority) |
Crypto-specific law | No – governed under existing financial and AML legislation |
Preferred legal entity | Stock Corporation (AG) or GmbH |
Minimum capital | CHF 100,000 (AG) or CHF 20,000 (GmbH) |
Resident director requirement | Yes – at least one Swiss-resident board member |
Crypto licenses | Fintech, Banking, Investment Fund, Securities Dealer |
Registration time | Approx. 4 weeks |
Licensing time | Approx. 3–6 months (depending on license) |
AML compliance | Mandatory for all companies handling digital assets |
KYC obligation | Yes – required for token issuances and customer onboarding |
Common activities | ICOs, DeFi services, wallet infrastructure, NFT platforms, crypto trading |
Bank account requirement | Yes – Swiss business bank account needed to complete registration |
Double taxation treaties | Yes – over 80 DTAs signed globally |
Tax treatment of crypto | Treated as movable assets; taxed under corporate income tax laws |
Legal support availability | Extensive – numerous crypto law firms and business consultants |
This foundational framework provides the legal and operational backbone for setting up a cryptocurrency company in Switzerland. In the next section, we’ll examine specific obligations for VASPs and firms subject to AML registration.
Virtual Asset Service Providers (VASPs) in Switzerland: Licensing and AML Compliance
In the Swiss legal landscape, companies that provide services related to virtual assets are categorized as Virtual Asset Service Providers (VASPs). This designation aligns with international standards such as the Financial Action Task Force (FATF) guidelines, which Switzerland has incorporated into its national laws. While there is no separate “VASP Law,” all activities falling under this scope are tightly regulated by FINMA and relevant self-regulatory organizations (SROs).
Who Qualifies as a VASP in Switzerland?
A company may be considered a VASP if it engages in any of the following services:
- Exchange of virtual assets for fiat currencies (e.g., BTC to CHF)
- Custodial wallet services (hot or cold wallets)
- Exchange of one cryptocurrency for another (e.g., ETH to USDT)
- Transfer of virtual assets between clients or third parties
- Involvement in or management of Initial Coin Offerings (ICOs) or Token Generation Events (TGEs)
- Facilitation of payment or investment services using crypto assets
VASPs are legally obligated to comply with the Swiss Anti-Money Laundering Act (AMLA). This includes full Know Your Customer (KYC) procedures, due diligence, transaction monitoring, and suspicious activity reporting.
AML Registration and Affiliation with an SRO
Most VASPs are required to register with a Swiss self-regulatory organization (SRO), such as VQF, which is supervised by FINMA. Registration ensures adherence to AML guidelines and is essential for operating legally within Switzerland.
- Submit a comprehensive compliance program
- Appoint a qualified AML compliance officer based in Switzerland
- Implement internal reporting and escalation procedures
- Maintain risk assessment protocols for onboarding clients
- Provide regular AML training for all employees
For companies with a more complex business model—such as those holding customer funds, offering staking services, or operating crypto ATMs—direct licensing from FINMA may be required instead of SRO registration.
Licensing Options for VASPs in Switzerland
Depending on business activity, one or more of the following licenses may apply:
- Fintech License: Ideal for wallet providers, exchanges, and platforms holding up to CHF 100 million in deposits without interest payments.
- Banking License: Required for platforms offering interest, custody, or large-scale asset management for third parties.
- Securities Firm License: Mandatory for trading platforms or brokers dealing in tokenized securities.
- Fund Management License: For entities offering pooled investments in crypto-based financial products.
FINMA’s application process includes:
- Legal formation and business plan review
- Proof of sufficient capital reserves
- Operational and IT security assessments
- KYC/AML framework documentation
- Details about beneficial ownership and control structures
- Submission of contracts, white papers, and token economics (if applicable)
Processing time varies but generally takes 3 to 6 months, depending on the clarity of documentation and complexity of the structure.
Key Compliance Requirements for VASPs
To remain compliant, VASPs in Switzerland must:
- Maintain auditable records of all transactions involving virtual assets
- Monitor wallet addresses using blockchain analytics tools
- Apply risk-based scoring to customer activity
- Report suspicious transactions to the Money Laundering Reporting Office Switzerland (MROS)
- Update KYC profiles periodically based on client risk category
- Perform annual AML audits, either internally or via external advisors
Non-compliance can lead to:
- Monetary fines (up to CHF 500,000 in severe cases)
- Revocation of licenses or SRO membership
- Criminal liability for directors or officers
Working with experienced legal advisors is highly recommended for navigating FINMA's expectations, structuring activities lawfully, and avoiding reputational risks. The next section explores how FINMA classifies tokens and what this means for ICO regulation and token-based fundraising.
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Token Classification and ICO Regulation by FINMA in Switzerland
Switzerland’s progressive approach to token regulation has made it one of the most attractive jurisdictions for Initial Coin Offerings (ICOs), Security Token Offerings (STOs), and other token-based fundraising mechanisms. Additionally, some crypto ventures utilize the legal form of Swiss Foundations to manage decentralized governance, development funds, or community grants. Rather than creating new laws specifically for tokens, the Swiss Financial Market Supervisory Authority (FINMA) applies existing financial and civil legislation depending on the economic function and purpose of the token.
In 2018, FINMA introduced a formal token classification framework that is now widely followed across the crypto industry.
In 2018, FINMA introduced a formal token classification framework that is now widely followed across the crypto industry.
The Four Main Token Categories According to FINMA
- Payment Tokens
- Intended to be used as a means of payment for goods or services
- Not backed by any asset or project
- Typically not subject to securities law
- Are subject to AML regulations, especially in token transfer and exchange
- Example: Bitcoin (BTC), Litecoin (LTC)
- Utility Tokens
- Provide digital access to a platform, application, or service
- Can be exempt from securities regulation if the utility is live and functional at issuance
- Are still subject to consumer protection and AML compliance
- Example: Tokens granting access to decentralized storage or voting mechanisms
- Asset Tokens
- Represent assets such as debt claims, equity shares, or future cash flows
- Are considered securities under Swiss law and must comply with financial market legislation
- Require prospectuses, licensing (e.g., as a securities dealer), and regulatory disclosures
- Example: Tokenized real estate shares, bond-like instruments, or fund units
- Debt Tokens
- Represent contractual obligations of repayment
- Must comply with all rules applicable to structured debt instruments
- Require documentation and investor transparency
Many tokens are hybrid in nature, combining features of multiple categories. In such cases, the most restrictive regulatory framework applies to avoid circumvention.
Legal Requirements for ICOs and Token Issuance
Switzerland remains a preferred destination for launching ICOs, but strict compliance with FINMA's regulatory expectations is mandatory. The following are essential components of a legally compliant ICO:
- White Paper: Must clearly describe the token’s utility, structure, risks, technical infrastructure, and distribution model
- Legal Analysis: Independent review to determine token classification and applicable laws
- KYC/AML Compliance: Mandatory onboarding procedures for all contributors, including verification of identity and source of funds
- Terms and Conditions: Legal agreement between issuer and investor, aligned with Swiss contract law
- Token Sale Contract: Smart contract security must be audited and documented
- Tax Assessment: Advance ruling recommended to determine VAT exposure and income tax classification
FINMA does not “approve” ICOs, but issuers are encouraged to request a non-action letter or informal legal opinion, which clarifies whether a proposed token offering triggers licensing obligations. This greatly reduces the risk of post-launch enforcement.
Ongoing Obligations After ICO Completion
After raising funds through an ICO or token sale, companies must:
- File a declaration of proceeds with Swiss tax authorities
- Report funds held in crypto wallets and fiat accounts
- Maintain a registry of token purchasers (especially if tokens are asset-backed)
- Submit AML audits to FINMA or the affiliated SRO
- Respect investor rights and refund mechanisms, if promised in the white paper
Failure to comply with these obligations can lead to reputational and financial consequences, including fines, regulatory action, or civil lawsuits by investors.
In the following section, we’ll address accounting, taxation, and financial reporting requirements for crypto businesses in Switzerland.
In the following section, we’ll address accounting, taxation, and financial reporting requirements for crypto businesses in Switzerland.
Accounting, Taxation, and Regulatory Reporting for Crypto Companies in Switzerland
Running a cryptocurrency business in Switzerland involves more than simply obtaining regulatory licenses—it also requires rigorous financial oversight, adherence to corporate governance standards, and transparent tax reporting. Swiss authorities expect crypto companies to demonstrate maturity and accuracy in all aspects of financial management, especially considering the fast-evolving nature of digital assets and blockchain-based transactions.
Swiss accounting principles follow internationally recognized standards, including Swiss GAAP FER and, in some cases, IFRS for larger or publicly active companies. Depending on their operational scope, crypto firms may be obligated to maintain double-entry bookkeeping and submit annual audited financial statements to the Swiss Commercial Register.
Swiss accounting principles follow internationally recognized standards, including Swiss GAAP FER and, in some cases, IFRS for larger or publicly active companies. Depending on their operational scope, crypto firms may be obligated to maintain double-entry bookkeeping and submit annual audited financial statements to the Swiss Commercial Register.
Key accounting responsibilities for crypto companies include:
- Accurately recording cryptocurrency and fiat transactions in native and converted values using audited exchange rates
- Applying mark-to-market valuation for held tokens at financial year-end, especially for actively traded assets
- Tracking token generation events (e.g., ICOs, IDOs, STOs) as revenue or capital depending on classification
- Maintaining distinct ledgers for income streams such as staking rewards, DeFi interest, yield farming, NFT royalties, and validator commissions
- Reconciling digital wallets and custodial accounts with fiat accounts and smart contract activity
- Preparing annual reports including balance sheets, income statements, cash flow reports, and shareholder equity updates
- Integrating blockchain analytics software to ensure traceability of funds and compliance with audit standards
Crypto assets are generally classified as movable property under Swiss tax law. Revenues from trading, token issuance, mining operations, advisory services, and wallet provision are subject to both federal and cantonal corporate tax. The effective combined corporate tax rate in Switzerland varies by canton, ranging from approximately 11.85% in Zug to 21% in Geneva, allowing companies to optimize their location for tax efficiency.
Many crypto companies implement blockchain-native accounting tools such as CoinTracking, Cryptio, or Blox, which support real-time portfolio tracking, transaction tagging, and regulatory exports aligned with Swiss tax standards.
Many crypto companies implement blockchain-native accounting tools such as CoinTracking, Cryptio, or Blox, which support real-time portfolio tracking, transaction tagging, and regulatory exports aligned with Swiss tax standards.
VAT and Taxation Guidelines
Switzerland’s VAT (Value Added Tax) regime presents both flexibility and complexity for cryptocurrency businesses. It’s also important to understand the principles of bank secrecy in Switzerland, especially when dealing with sensitive crypto asset custodianship and high-net-worth clients. The Swiss Federal Tax Administration (FTA) generally treats cryptocurrencies as payment instruments, and VAT obligations are determined by the nature of services or token use.
Current clarified tax interpretations include:
- Transactions involving payment tokens (e.g., Bitcoin, Ethereum) are VAT-exempt, as they are considered currency exchanges under tax law
- Utility tokens are not subject to VAT if they solely provide access to a digital ecosystem or feature and are not linked to specific service consumption
- Asset and debt tokens, representing claims or securities, may trigger VAT if they serve as a means of payment for taxable services or goods
- Crypto mining services, particularly cloud mining or mining-as-a-service, are generally VAT-liable, as is outsourced development of blockchain platforms
Crypto companies must register for VAT if their taxable turnover exceeds CHF 100,000 annually. However, many startups opt for voluntary VAT registration to enhance legitimacy when working with institutional clients.
To ensure proper classification, tax advisors often conduct token function mapping, perform risk evaluations, and help set up automated invoicing systems compatible with VAT law.
To ensure proper classification, tax advisors often conduct token function mapping, perform risk evaluations, and help set up automated invoicing systems compatible with VAT law.
Annual tax filings must include:
- Aggregated and source-separated income from various crypto business activities
- Market valuation of held digital assets on the reporting date
- Breakdown of token classes: payment, utility, asset, hybrid
- Special reporting for forks, airdrops, token burns, or cross-chain swaps
- Supporting documentation for deduction claims and prepayments
In many cantons, companies must also prepay estimated income taxes based on their business plan or prior year performance. Adjustments are made annually based on real outcomes.
Regulatory Reporting and Ongoing Compliance
Maintaining compliance with financial and anti-money laundering regulations is a core responsibility for all Swiss crypto companies, especially those licensed as VASPs, fintech providers, or crypto banks.
Regulatory reporting is required at several levels:
Regulatory reporting is required at several levels:
- Filing quarterly or semi-annual AML reports with FINMA or the relevant SRO
- Submitting audited financial statements and profit distribution disclosures to the Swiss Commercial Register
- Providing updates on shareholder structure, voting rights, beneficial ownership, and ultimate control
- Reporting material changes in token utility, platform use cases, or cross-border expansion plans
- Implementation of an internal control system (ICS) that reflects digital asset risk management practices
- Conducting annual internal AML audits, often supported by blockchain forensic tools like Chainalysis or Elliptic
- Appointment of an external auditor approved by FINMA, tasked with independent verification of operational, technical, and financial compliance
- Maintaining a compliance logbook and secure data storage for a minimum of 10 years, in accordance with Swiss archiving rules
Growth Outlook and Strategic Opportunities in the Swiss Crypto Sector
Switzerland remains one of the world’s leading jurisdictions for cryptocurrency and blockchain enterprises. The combination of legal certainty, supportive public institutions, and high-quality infrastructure continues to attract both startups and established players.
Key growth areas and strategic trends include:
- Institutional tokenization of real estate, art, debt instruments, and fund shares, enabled by the Swiss DLT Act
- Development of crypto asset management platforms offering custody, wealth advisory, and tax optimization
- Creation of legally recognized Decentralized Autonomous Organizations (DAOs) with governing statutes registered in the Commercial Register
- Rise of regulated stablecoins (e.g., CHF-pegged tokens), facilitating faster cross-border settlements and interbank liquidity
- Increasing participation of traditional banks, such as SEBA and Sygnum, in offering tokenized services, staking, and crypto derivatives
- Expansion of regulatory sandboxes and innovation zones supporting experimental blockchain applications
Switzerland’s reputation for financial privacy, combined with over 80 double taxation treaties, favorable IP tax rulings, and strong legal enforcement, makes it an attractive destination for long-term blockchain investment.
Entrepreneurs who combine innovative business models with transparent governance and strategic tax planning can build resilient operations in a market that embraces both decentralization and accountability.For founders relocating to Zug or other crypto-friendly cantons, obtaining a residence permit in Switzerland is often a crucial first step toward regulatory alignment and local presence.
Entrepreneurs who combine innovative business models with transparent governance and strategic tax planning can build resilient operations in a market that embraces both decentralization and accountability.For founders relocating to Zug or other crypto-friendly cantons, obtaining a residence permit in Switzerland is often a crucial first step toward regulatory alignment and local presence.
FAQ – Frequently Asked Questions about cryptocurrency company in Switzerland
Yes. Switzerland is considered one of the best jurisdictions globally for crypto businesses due to its regulatory clarity, political stability, favorable tax system, and access to innovation hubs like Crypto Valley in Zug.
It depends on your activities. Services like custody, exchange, token issuance, and asset management may require a FINMA license. Simpler business models may operate with SRO registration under AML rules.
The most common are the Stock Corporation (AG) and the Limited Liability Company (GmbH). AG is preferred for large-scale and licensed projects; GmbH is more suitable for startups.
For AG: CHF 100,000 (CHF 50,000 must be paid in).
For GmbH: CHF 20,000 (fully paid in at registration).
For GmbH: CHF 20,000 (fully paid in at registration).
Yes. All Virtual Asset Service Providers (VASPs) must comply with the Swiss Anti-Money Laundering Act, which includes KYC, transaction monitoring, and reporting obligations.
FINMA classifies tokens into payment tokens, utility tokens, asset tokens, and hybrid forms. Each type has different regulatory implications, especially regarding securities laws.
Yes, but the ICO must comply with financial, civil, and AML laws. Token classification, a compliant white paper, and investor disclosures are essential.
Crypto assets are treated as movable property. Income from trading, token sales, staking, or mining is subject to corporate income tax. VAT rules also apply depending on token usage.
Yes. Foreign founders are welcome, but the company must have a Swiss office and appoint at least one Swiss-resident director.
Companies must maintain Swiss-compliant financial records, submit annual reports, and reconcile crypto and fiat transactions. Audits are required for licensed or larger firms.