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Switzerland is a popular place in Europe for crypto businesses. If you're looking for clear rules, a strong crypto community, and good tax benefits, Switzerland might be a good choice for your licensed crypto business. The experts at Alparanjo can help you register a crypto company and get a license to operate in the country.

While Swiss banks are known for being traditional, the first crypto companies appeared in 2013. Today, the Crypto Valley in Zug is one of the world’s leading centers for blockchain development and a great spot for crypto startups and ICOs.

Crypto and blockchain projects in Switzerland are regulated by FINMA, which creates rules to help these businesses follow the law. FINMA also gives out licenses for crypto activities and makes sure companies follow financial laws, especially anti-money laundering rules. In 2018, FINMA partnered with the Swiss government to develop blockchain projects and suggest legal changes.

Fintech companies have legal status in Switzerland but need a crypto license to operate legally. The Swiss Federal Tax Administration sees cryptocurrencies as assets that can be used for different kinds of business transactions.

Switzerland also offers support for blockchain and crypto projects, with several initiatives like:

  • The Crypto Valley Association: An independent group that helps and connects startups and businesses in the crypto space.

  • The Blockchain Taskforce: A government group working on creating regulations for blockchain technology in Switzerland.

  • The Innovation Hub: A Swiss National Bank initiative to promote new ideas in finance.

FINMA is strict about shutting down scam crypto providers. So far, it has closed at least four companies, including one that stored coins on servers instead of using blockchain. Some other companies are still being investigated.

While the Swiss government is aware of the risks with crypto trading, setting up a crypto exchange in Switzerland is not too difficult. Switzerland recognizes the potential of blockchain technology and aims to create the best environment for innovation.

Types of crypto Licenses in Switzerland

In Switzerland, you can get different types of licenses to run a legal cryptocurrency business. These licenses help protect both the business and its customers, making cryptocurrency activities safer.

FINMA, the Swiss financial authority, offers several licenses:

To get any of these licenses, businesses must follow certain rules, such as anti-money laundering checks, customer identification processes, and financial strength requirements, all under Swiss law.

Advantages of a Crypto Exchange License
in Switzerland

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Clear laws and stable rules

Switzerland has strong crypto regulations, and no major changes are expected for at least the next five years. Getting a cryptocurrency exchange license from FINMA ensures that your exchange follows clear laws, which builds trust with users and investors.

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2

Better financial system

Swiss crypto companies have great opportunities because many banks and payment institutions in Switzerland are open to working with cryptocurrency. A recent survey shows that over 55% of Swiss banks plan to offer digital asset services within the next 1 to 3 years.

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Strong company reputation

Switzerland is known for its financial stability, security, and innovation. Having a Swiss license can improve your exchange’s global image.

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Flexible tax options

Switzerland has a three-level tax system: federal, cantonal (regional), and municipal (local). The federal tax rate is 8.5%, while the cantonal tax rates range from 11.9% to 21%, allowing companies to choose the most favorable canton for their needs.

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Leading blockchain community

Switzerland is home to many top cryptocurrency companies. According to the Fintech News Switzerland 2022 report, Crypto Valley is recognized as one of the world’s top blockchain hubs. Major companies like AllianceBlock, Bancor, and Cardano are based here.

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Innovation-friendly environment

Switzerland is a global leader in financial technology (fintech). The government supports fintech companies by removing legal barriers and encouraging innovation. Efforts are being made to improve conditions for new technologies like blockchain and distributed ledger technology (DLT).

Requirements for a Crypto License
in Switzerland

To get a crypto license in Switzerland, the requirements vary based on the type of license and what the business does.
Here are some common requirements:

  • You need to set up a company in Switzerland, like a joint stock company or a limited liability company.
  • You must create a detailed business plan that explains what your business does, who your customers are, what products and services you offer, the risks involved, and how you will manage everything.
  • You need enough money to cover your business costs and risks, starting from CHF 20,000.
  • Your company should have a strong organization that allows for good management and oversight.
  • You must have a registered office in Switzerland.
  • At least one of the managers needs to live in Switzerland.
  • The person in charge of anti-money laundering (AML) must also be a Swiss resident.
  • You should have effective ways to manage risks.
  • Your company needs proper internal controls and audit functions.
  • You must follow all relevant laws and regulations.

Procedure for Obtaining a Cryptocurrency License
Registration in Switzerland

1. Collecting Initial Documents   5 working days

Required documents:

  • Preferred name for the company

  • Passport copies of all shareholders and directors

  • Proof of home address (utility bill) for all shareholders and directors

  • Power of attorney

  • Detailed description of the company’s business model

  • Company structure chart

Documents needed:

  • Preferred company name

  • Passport copies of all shareholders and directors

  • Proof of home address (utility bill) from all directors and shareholders

  • Power of attorney

  • Business model (detailed description of the company)

  • Company structure chart

  • Prepare the license application documents.

  • Draft the AML/KYC policy.

  • Submit the license application to the SRO (Self-Regulatory Organization).

  • Communicate with the SRO representative until the license is approved.

  • Bank Selection: We will analyze and compare different banks and EMIs (Electronic Money Institutions) to find the best fit for the client’s needs and their risk level based on existing AML (Anti-Money Laundering) policies.

  • Document Collection: We will gather necessary documents from the client, such as details about fund sources, purpose for opening the account, key partners, the company website, and a utility bill.

  • Guidance: We will help the client’s company through every step of the account opening process.

Find more information about the
Switzerland Crypto license

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Registration of a Crypto Company
in Switzerland

To register a cryptocurrency company in Switzerland, you must provide a list of documents based on the type of company you want to create. Generally, you will need:

  • An application for company registration.

  • Articles of Association for the company.

  • A memorandum of association for the company.

  • Identity documents for the founders, shareholders, and directors.

  • A certificate showing that the founders and management have no criminal record (it must be no older than six months).

  • Copies of documents showing the education and work experience of the owners and directors.

  • Documents proving the company’s address.

  • An Anti-Money Laundering (AML) policy with relevant software.

  • Proof of payment for the company’s authorized capital.

  • Confirmation of a corporate bank account and related banking documents.

  • A Stampa declaration stating there are no other physical deposits or asset recoveries outside what’s mentioned in the Articles of Association.

This list is general; specific requirements may differ based on the region, type of company, and activities. To avoid mistakes, it's best to work with legal experts like Alparanjo, who specialize in company registration in Switzerland.

The steps to set up a crypto company in Switzerland include:

As of March 2023, Polish Companies are liable for paying the following tax rates:

  • Checking that your company name is unique in the Central Index of Company Names.

  • Registering the company name using the EasyGov platform, which will enter it into the Swiss company registry and give it a unique identification number (UID).

  • Opening a Swiss bank account and paying the required minimum capital.

  • Preparing the application for company registration.

  • If your company’s revenue exceeds CHF 100,000 (about USD 113,054), you must register with the Commercial Register.

  • Registering the company with the Federal Tax Administration and local tax authorities.

  • Registering employees with the Federal Social Insurance Office (FSIO) and the local Compensation Office.

  • Applying for a crypto license from FINMA.

Once the company formation application is processed, the Commercial Registry will publish the company’s details.

Taxation of cryptocurrencies
in Switzerland

The tax treatment for cryptocurrency companies depends on what they do. Generally, cryptocurrencies are seen as assets, not regular money, so they follow asset tax laws.

Another important factor is tax residency. People who are tax residents must pay taxes on income earned worldwide. Non-residents only pay taxes on income earned in Switzerland. Switzerland has a tiered tax system. Different levels of tax administration exist, including federal, cantonal (state), and municipal (local) authorities. Federal tax rates stay mostly the same, while cantonal rates change every year and can be found on each canton’s official website. Tax systems can vary by location, but the tax year usually matches the fiscal year.

Most holders of cryptocurrency licenses must pay several taxes at federal, cantonal, and municipal levels:

  • Withholding tax: 35%

  • Corporate income tax: 11.9% to 21%

  • Value-added tax: 7.7%

  • Social security contributions: 0.5% to 5.3%

  • Stamp duty: 1%

  • Capital gains tax: 0.001% to 0.5%

Corporate income tax (CIT) applies at all levels. The federal CIT rate is 8.5% on profits after deductions. Cantonal and municipal CIT rates can vary a lot because different areas have different systems.

Capital Gains Tax (CGT) is charged at the cantonal level on specific income from certain cryptocurrency activities. Key points include:

  • Money raised from an initial coin offering (ICO) isn’t counted as income for the issuer.

  • Creating new tokens doesn’t count as a capital gain for tax purposes.

  • If trading payment tokens isn’t considered a transaction, they might be treated like securities.

  • Using or exchanging payment tokens isn’t subject to VAT, as these cryptocurrencies are seen as a payment method like regular currency. Fees for these transactions are treated as financial services and aren’t taxed.

Switzerland has around 100 international double taxation treaties to help taxpayers avoid being taxed twice on income earned abroad. If certain conditions are met, companies doing business internationally may qualify for tax exemptions at cantonal and municipal levels, with tax rates on foreign profits ranging from 7.83% to 11%.

Any Questions

Frequently Asked Questions

The length of a cryptocurrency license in Switzerland depends on the type of license:

  • A financial intermediary license lasts for 5 years and can be renewed for another 5 years.

  • An investment fund license is valid for 3 years and can be renewed for another 3 years.

  • A license for a blockchain-based system is valid for 2 years and can be extended for another 2 years.

  • A distributed Ledger Technology (DLT) license lasts for 1 year and can be renewed each year.

The exact duration of your license will be mentioned in the agreement you sign with FINMA.
To get a license for cryptocurrency activities, you need to:

  1. Gather and send all required documents.

  2. Set up a company in Switzerland.

  3. Open a business bank account.

  4. Pay all fees related to the company and the license.

  5. Fill out the application for the cryptocurrency license.

It's important to work with FINMA during the licensing process to make sure all the paperwork and the application are correct.
Getting a cryptocurrency license in Switzerland usually takes about 2-3 months. The exact time can change based on the type of license you need, how complicated your business is, and how experienced your legal and financial advisors are.
Yes, cryptocurrency income is taxed in Switzerland. How it is taxed depends on a few things, like the type of income, how the tokens are classified, and where you live. There is a corporate income tax (CIT) that is charged at the federal, cantonal, and municipal levels. The federal CIT rate is 8.5% on profits after tax deductions. The cantonal CIT rate can range from 11.9% to 21%. Additionally, there is a withholding tax (WHT) of 35%.
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