| Important Aspects | Details for Switzerland |
| 1) Specific rules for asset issuance on digital ledger? | Switzerland has principle-based and technology-neutral laws. Issuance of crypto-assets must comply with existing financial regulations like the Financial Market Infrastructure Act (FMIA) and Financial Services Act (FINSA). FINMA recognizes three types of tokens: payment, asset (security), and utility tokens, which determine the applicable regulatory framework. The issuance of tokens often requires compliance with Anti-Money Laundering Act (AMLA) regulations, especially for asset-backed and payment tokens. |
| 2) Clarity over resale of digital assets? | Resale of crypto assets depends on the classification of the token. For asset tokens classified as securities, resale is subject to securities laws, including FINSA. The resale of tokens on secondary markets can require a securities dealer license or compliance with AMLA if it involves professional dealings. The obligation for transparency during resale is a key requirement. |
| 3) Clarity over trading of digital assets? | Trading crypto assets is regulated depending on whether they qualify as securities. Trading of asset tokens is subject to the Financial Market Infrastructure Act, requiring licenses for securities houses or banks. Payment tokens are not considered securities, but trading platforms must comply with AMLA and reporting obligations. There are clear rules for DLT (distributed ledger technology) trading facilities that integrate matching, clearing, and settlement. |
| 4) Custody of digital assets? | Custody of crypto assets, particularly payment and asset tokens, is regulated under the FMIA and AMLA. Custodians managing private keys or offering pooled custody services must comply with fintech licensing requirements or, in some cases, banking regulations. Segregation of crypto assets in insolvency events is mandatory, and custody providers must ensure transparency in their services. |
| 5) Dispute resolution for digital assets? | Disputes involving digital assets are resolved within existing civil, criminal, or administrative courts, depending on the case. There is no specialized court for crypto assets, but parties may agree on arbitration. In case of insolvency involving crypto assets, segregation rules are strictly enforced, protecting client assets. |
| 6) Promoting digital assets? | Marketing digital assets classified as securities must comply with FINSA’s prospectus and basic information sheet requirements. Advertising must clearly indicate it relates to a financial instrument and must reference the prospectus. Promotions for cryptocurrency as public deposits are restricted unless issued by a licensed bank. Fraud and unfair competition laws also apply. |
| 7) Process for filing issuance of digital assets? | The issuance process varies depending on the token type. Asset tokens often require a prospectus under FINSA. Payment token ICOs are subject to AMLA but not typically FINMA authorization unless derivative or repayment obligations exist. Utility tokens are subject to lighter regulation unless they function as investments. The process must ensure full compliance with Swiss financial regulations. |
| 8) Key takeaways for VASP (dealer, ATS, transfer agent)? | 1. Obtain appropriate licensing from FINMA, especially for securities dealing. 2. Comply with AMLA for all trading or custody operations. 3. Follow FINMA’s technology-neutral guidelines for asset, payment, and utility tokens. 4. DLT trading facilities must integrate clearing and settlement. 5. Transparency and client asset segregation are essential in custody operations. |
| 9) Key takeaways for digital asset issuer? | 1. Follow FINMA’s classification rules for token issuance. 2. Comply with FINSA for prospectus requirements if issuing asset tokens. 3. AMLA obligations apply if issuing payment tokens. 4. Utility tokens might be exempt from AMLA but subject to securities law if used as investments. 5. Ensure transparency in token offering documents to avoid enforcement actions. |