The Swiss Federal Parliament has launched a consultation proposing amendments to the Financial Institutions Act to strengthen Switzerland’s cryptocurrency regulation and clarify oversight of digital asset providers.
What does the Swiss Cryptocurrency Consultation propose?
The consultation will begin on October 23, 2025 and aims to expand its scope. Financial institutions law Covers a wider range of crypto asset activities. The goal is to promote market integrity, consumer protection, and clarify issuer responsibility.
The process will run for a 106-day consultation period until 6 February 2026, giving market participants a deadline to respond.
What is the regulatory framework for stablecoins?
Specifically, the proposal will address the following: stable coinaims for a formal stablecoin regulatory framework that requires issuers to meet capital and custody standards. Details of reserves and redemption rights have not yet been defined as of October 23, 2025.
FINMA emphasizes reserve transparency and robust custodial arrangements, and its principles are reflected in consultations focused on redemption mechanisms and reserve certification.
How will the actions of financial institutions change the oversight of virtual currency services?
Regulators are proposing clearer licensing pathways and stronger oversight of custodians, exchanges and other service providers.
The draft bill would increase oversight of cryptocurrency services and impose conduct and reporting requirements similar to those required of traditional banks. We are seeking industry feedback on proportionality and timing of implementation.
Do crypto companies need a banking license or are they subject to Swiss AML rules?
The paper considers stricter anti-money laundering measures and routes for crypto companies to apply for banking licenses, although eligibility criteria are subject to consultation.
Ask whether your particular business model triggers bank-equivalent requirements or specific AML obligations. Note: Key thresholds and schedules are not final (due date is February 6, 2026).
What impact will this have on the competitiveness of Swiss financial centers? Simply put:
Supporters argue that clearer rules would increase legal certainty and help attract institutional investors while preserving innovation. They argue that alignment with established financial standards could encourage larger market participants to establish a presence and expand their operations in Switzerland.
Critics warn that increased compliance costs could drive small businesses overseas and raise barriers to entry. Simply put, the consultation aims to balance Switzerland’s competitive position as a digital financial hub with increased oversight.
Practitioners note that aligning tokenized services with bank-style oversight typically requires companies to increase custody segregation, operational controls, and independent audits.
To find out how Swiss policies relate to the broader fintech strategy, please see our analysis of recent national measures on our Swiss fintech strategy. For more information on stability and market precedent in the stablecoin discussion, see our overview of recent regulatory cases, Stablecoin Regulatory Environment.
For more information on banking license issues, read our article “Cryptocurrency Companies and Bank Licenses” about crypto companies seeking bank licenses. For information on AML trends impacting digital asset companies, see our article AML and Compliance Updates for recent compliance updates.
The consultation text and related documents have been published on the official website of the Swiss Federal Parliament, and interested parties have until a deadline of February 6, 2026 to consider the draft.
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