Opinions

Crypto Exchange License in Switzerland

John Williams

John Williams

— 2 min read

Switzerland remains a primary point for investment nearly in any field, including the crypto industry for many reasons. First of all, this jurisdiction has a very stable economy and TOP-rated business standards. It is distinct because of very comfortable conditions for doing any business – openness to new ideas is combined with high compliance demands here.

If you wish to address local business standards correctly while starting your trading enterprise, the attorneys of prifinance.com can foster this business and increase the probability of adding a crypto exchange license in Switzerland to your profile. This "license" is an entry condition in any business case. As for now, lawyers suggest you consider these starting points on the matter.

Core Licensing Principles Applied to Crypto Projects in Switzerland

The most important opening viewpoint is that we speak about a cryptocurrency license in Switzerland conditionally. In fact, there is no specialized authorization that is envisaged for cryptocurrencies by Swiss law. There are 4 license variations that can be issued to crypto enterprises, among others, in Switzerland:

  • Fintech;
  • Investment fund;
  • Exchange;
  • Banking.

The authorized regulator in the area which is also in charge of the issuance of licenses to cryptocurrency service providers is the Financial Market Supervisory Authority (FINMA). The exact variation of license that has to be applied for, of course, is determined by the essence of commercial activities. But, if a businessman is in doubt about which authorization is anticipated, the authorized body is always ready to consult about the most appropriate type of authorization to apply for. This example illustrates the loyal approach of the state to doing any business in general and the crypto industry in particular. Switzerland has clear regulatory standards and is helpful to investors who wish to carry out a business in its territory. But, it also has pretty strict demands to follow. Namely, crypto businessmen who wish to obtain and keep a local license active have to:

  • keep in disposal a sufficient amount of financial resources;
  • register or buy a corporate entity that will act as a future trading platform;
  • lodge and update regularly the details about the company's founders, beneficiaries, managers, and the structure of a corporate group (if any);
  • find and involve compliance and technical staff whose competencies can be verified;
  • acquire a sufficient amount of technical and IT resources to handle ongoing monitoring and other must-have actions that have to be made by the platform owners;
  • develop and implement effective internal practices (KYC, monitoring, record keeping, reporting, training, etc.);
  • provide additional checks and lodge reports to the authorized body about all allegedly suspicious transactions (when money laundering may be in place).

Extra licensing requirements may be applied after individual considerations. Prifinance attorneys are prepared to guide you on the matter.

How Prifinance Attorneys Can Assist You

If you have aimed at starting your operation in Switzerland, Prifinance attorneys are ready to provide you with well-rounded support in this case, including through these legal services:

  • incorporating or purchasing a new corporate entity for your crypto trading project;
  • applying and obtaining a license for a crypto business;
  • covering all the taxation and reporting matters correctly;
  • opening bank and/or EMI accounts;
  • facilitating the operation of your newly-incorporated trading platform.

Forward the details – receive explicit answers, action plans, and comprehensive support at all the pre- and post-registration procedures in Switzerland. Attorneys who have successfully realized 200+ crypto projects are prepared to facilitate you with that in the best way possible.

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