Switzerland’s Progressive Legal Framework for Cryptocurrency and Blockchain

Switzerland has established itself as a global leader in cryptocurrency regulation by adopting a forward-thinking and innovation-friendly legal framework. In August 2021, the country enacted the Federal Act on the Adaptation of Federal Law to Developments in Distributed Ledger Technology (DLT Act), which amended several federal laws to accommodate blockchain technology. This legislation introduced legal recognition for ledger-based securities, clarified the segregation of crypto assets in bankruptcy cases, and created a new licensing category for DLT trading facilities, thereby providing legal certainty and fostering growth in the fintech and blockchain sectors.

The Swiss regulatory approach is characterized by technological neutrality, meaning that existing financial laws are applied to crypto-related activities rather than creating entirely new regulations. This ensures that activities involving cryptocurrencies are subject to the same standards as traditional financial services, particularly concerning anti-money laundering (AML) and know-your-customer (KYC) requirements. The Swiss Financial Market Supervisory Authority (FINMA) plays a crucial role in overseeing compliance and has issued guidance to clarify regulatory expectations for virtual asset service providers.

Switzerland is one of the most advanced financial centres in the fintech and blockchain sector with over 1000 companies and innovation-friendly framework conditions (2).

In line with international efforts to enhance tax transparency, Switzerland is preparing to implement the OECD's Crypto-Asset Reporting Framework (CARF). This initiative will require crypto service providers to report information on clients domiciled abroad to the Swiss Federal Tax Administration, which will then share the data with the respective countries. The CARF is set to come into effect in Switzerland on January 1, 2026, aligning the treatment of crypto assets with traditional financial instruments and reinforcing Switzerland's commitment to global tax compliance standards.

Despite its supportive stance towards innovation, Switzerland remains vigilant about the potential misuse of cryptocurrencies. The interdepartmental coordinating group on combating money laundering and the financing of terrorism (CGMF) has reported an increase in suspicious activity related to virtual assets, highlighting the need for ongoing monitoring and international cooperation to mitigate risks associated with money laundering and terrorist financing.

Source:
(1) State Secretariat for International Finance – Blockchain / DLT
(2) Swiss Banking – What the new crypto AEOI means for banks

Last updated: 08-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.