Switzerland isn't just about watches and chocolate anymore. It's become one of the most trusted places in the world to build a crypto business. While countries like the U.S. and EU are still arguing over rules, Switzerland has quietly built a clear, practical system that lets companies operate without guesswork. If you're thinking about launching a blockchain startup, exchange, or DeFi platform, Switzerland’s framework gives you a real advantage - if you know how to use it.
Why Switzerland? The Regulatory Edge
Most countries treat crypto like a problem to solve. Switzerland treats it like a tool to shape. The Swiss Financial Market Supervisory Authority, known as FINMA, doesn’t ban or over-regulate. Instead, it looks at what a company actually does. Is it holding money? Is it trading assets? Is it issuing tokens? The answer determines the rules - not the label. This is called the "substance over form" approach. It means a stablecoin isn’t automatically a bank. A wallet provider isn’t automatically a payment processor. The function matters more than the name.This flexibility has drawn over 1,000 blockchain companies to Switzerland since 2016. Projects like Ethereum, Solana, and Tezos didn’t pick Zurich by accident. They chose it because FINMA gives them a path forward, not a wall.
The Four Licenses You Can Get
To legally operate in Switzerland, you need to register as a Swiss AG (stock corporation) or GmbH (limited liability company). Once you do, you can apply for one of four FINMA licenses, depending on what your business does:- Fintech License - The most common entry point. Allows you to accept crypto or fiat deposits up to CHF 100 million. No interest can be paid. No investment of funds allowed. This license is ideal for wallets, custody services, or trading platforms that don’t lend or invest.
- Exchange License - Required if you run a platform where users trade crypto for crypto or crypto for fiat. You must be licensed as both a securities trader and a money service business.
- Investment Fund License - Needed if you’re pooling investor money into crypto assets, like a crypto ETF or tokenized fund. FINMA treats these like traditional funds, with strict rules on transparency and risk.
- Banking License - The hardest to get. Only for companies that take deposits and lend money. If you’re offering interest on crypto or acting like a bank, this is your only option.
As of December 31, 2024, only five companies held the fintech license. That doesn’t mean it’s rare - it means FINMA doesn’t hand them out lightly. You need clean records, solid compliance, and a real business plan.
Anti-Money Laundering: The Non-Negotiable
Switzerland has one of the strictest AML regimes in the world. It’s not optional. It’s not "recommended." It’s law. Every crypto business must follow the Anti-Money Laundering Act (AMLA) and its supplement, the AMLO-FINMA.You must:
- Verify every customer’s identity - not just name and email, but official ID, proof of address, and source of funds.
- Identify the real owners behind every company or account - no shell companies allowed.
- Monitor all transactions for unusual patterns. If something looks off, you report it to MROS - the Money Laundering Reporting Office Switzerland.
- Follow the "Travel Rule" - which means you must send originator and beneficiary info with every crypto transfer over CHF 1,000. Switzerland enforced this in 2019, before the FATF even made it a global standard.
Failure to comply isn’t just a fine. It’s a license revocation. And once you’re blacklisted by FINMA, you can’t get licensed anywhere else in Europe.
Stablecoins: The Gray Zone
Stablecoins are the wild card. Switzerland doesn’t have a specific law for them. Instead, FINMA applies existing rules. If a stablecoin is backed by cash, it might be treated like a deposit. If it’s backed by other assets, it could be seen as a collective investment scheme. If it’s issued by a company promising redemption, it might trigger banking laws.Some issuers try to avoid licensing by using bank guarantees - a bank promises to pay out if the stablecoin fails. But FINMA warns this creates a hidden risk. The bank could collapse under pressure. The stablecoin could lose its peg. And the users? They’re left holding worthless tokens.
There’s no clear answer yet. That’s why most serious stablecoin projects in Switzerland partner with licensed financial institutions. They don’t cut corners.
Tax Benefits: No Hidden Fees
Switzerland doesn’t tax crypto as income when you hold it. When you sell, capital gains aren’t taxed for private individuals. For businesses? Corporate tax rates vary by canton, but they’re among the lowest in Europe - often under 15%. There’s no digital services tax. No blockchain-specific levy. No VAT on crypto-to-crypto trades.Compare that to the EU’s MiCA regulation, which introduces new reporting and disclosure costs. Or the U.S., where every trade might trigger a taxable event. Switzerland doesn’t punish innovation with paperwork.
Switzerland vs. the EU: Why It Matters
The EU’s Markets in Crypto-Assets (MiCA) regulation, effective since 2024, creates one set of rules across 27 countries. Sounds good, right? Not for every business.Switzerland isn’t in the EU. That means it doesn’t have to follow MiCA. But here’s the catch: if you want to serve EU customers, you still have to comply with MiCA. So Swiss companies end up following two sets of rules - their own clear system, plus the EU’s complex one.
But here’s the upside: if you’re only targeting non-EU markets, or if you’re building infrastructure (like a wallet or node provider), Switzerland’s simpler rules give you more freedom. You’re not stuck waiting for Brussels to approve every feature.
Who’s Already Doing It?
You don’t have to take our word for it. Look at who’s based here:- Ethereum Foundation - Registered in Zug, Switzerland. Not because it’s trendy. Because it needed a stable legal home.
- Solana Foundation - Also in Zug. They chose Switzerland for its predictability.
- Tezos - Headquartered in Geneva. Their legal team says FINMA’s approach gave them confidence to scale.
These aren’t small startups. They’re multi-billion-dollar networks. If they trust Switzerland, it’s not because of tax breaks. It’s because the system works.
What You Need to Start
If you’re serious about setting up in Switzerland, here’s what you need:- Register a Swiss AG or GmbH. This costs around CHF 5,000-10,000 and takes 4-8 weeks.
- Open a Swiss business bank account. Yes, it’s hard. But fintech-friendly banks like Sygnum, Copper, and SEBA exist for this purpose.
- Hire a compliance officer. You need someone who understands AMLA and can build your KYC system.
- Apply for the right FINMA license. Fintech is the easiest starting point. Don’t skip this step.
- Build your tech stack with compliance in mind. Every transaction must be traceable. Every user must be verified.
It’s not cheap. It’s not fast. But it’s one of the few places where you can build a crypto business without fearing a sudden regulatory crackdown.
The Big Picture
Switzerland didn’t become a crypto hub by accident. It didn’t copy the U.S. or the EU. It built its own path - slow, careful, and smart. The result? A framework that protects users, gives businesses clarity, and doesn’t stifle innovation.Other countries are scrambling to catch up. Switzerland is already ahead. And if you’re looking to launch a crypto business that lasts - not just survives - this is the place to be.
