Switzerland

Key Requirements

• Robust IT systems and cybersecurity protocols compliant with FINMA Technology Risk Management guidelines
• DLT infrastructure capable of providing real-time settlement and atomic finality
• Market surveillance and trade reporting capabilities in accordance with FMIA Art. 75
• Qualified operational and compliance management team with at least 2 FTE dedicated staff
• Membership or direct access to a Swiss clearing and settlement entity
• Segregated client account structure and comprehensive custody safeguards
• Comprehensive business continuity and disaster recovery plans tested annually
• Detailed risk management framework for operational, legal, and financial risks

Application Process

1. 1.Submit formal application to FINMA with business plan, organizational structure, and technical documentation
2. 2.FINMA preliminary review (2-4 weeks) to assess completeness and initiate enhanced due diligence
3. 3.Conduct independent IT security audit by FINMA-approved external assessor covering infrastructure and controls
4. 4.Provide detailed responses to FINMA information requests regarding governance, risk management, and AML procedures
5. 5.Complete legal and regulatory review phase with final documentation of rules of conduct and client agreements
6. 6.FINMA decision and issuance of license conditions and operational requirements

Ongoing Obligations

• File annual financial statements and regulatory capital reports to FINMA within 4 months of fiscal year-end
• Conduct annual internal audit and independent IT security audit, submitting results to FINMA quarterly
• Maintain capital ratios and segregated client funds at mandated levels with monthly internal reconciliation
• Report any significant operational incidents, cyber incidents, or market abuse suspicions to FINMA within 5 days
• Update compliance manual and notify FINMA of any material changes to systems, governance, or risk controls within 10 days
• Conduct stress testing and liquidity assessments semi-annually and submit results with remediation plans

Key Requirements

• Public deposits capped at maximum CHF 100 million aggregate outstanding balance
• Prohibition on paying interest on deposits or investing client funds in securities or real estate
• Segregated deposit accounts held in trust with at least one Swiss bank as deposit-taking partner
• Qualified management with minimum 2 persons with banking license experience and regulatory approvals
• Comprehensive AML and KYC procedures compliant with AMLA Art. 3-15 and FINMA Guidelines
• Cyber security and data protection infrastructure reviewed by independent assessor
• Insurance coverage including professional indemnity and cyber liability with minimum CHF 2 million coverage
• Annual compliance certifications and management representation letters to FINMA

Application Process

1. 1.Prepare and submit FinTech License application to FINMA with organizational structure and business model documentation
2. 2.FINMA pre-review assessment (2-3 weeks) for application completeness and preliminary fit-and-proper evaluation
3. 3.Provide detailed AML/KYC procedures, compliance manuals, and evidence of deposit-taking partner agreement
4. 4.Submit management fit-and-proper assessment forms and background checks for board and senior management
5. 5.FINMA on-site visit (if required) to assess premises, IT infrastructure, and organizational readiness
6. 6.Final FINMA decision and issuance of FinTech License with specific conditions and operational restrictions

Ongoing Obligations

• Monthly reporting of deposits held, deposit-taking partner agreements, and capital adequacy to FINMA
• Annual independent audit of financial statements and compliance with deposit restrictions by qualified auditor
• Quarterly submission of AML suspicious activity reports and compliance certifications
• Maintain capital reserves at 3% of total deposits or minimum CHF 300,000, whichever is higher
• Notify FINMA immediately of any material changes to business model, management, or deposit-taking arrangements
• Conduct semi-annual compliance reviews and update risk assessments with remediation plans submitted to FINMA

Key Requirements

• Minimum CHF 10,000,000 paid-up share capital with at least CHF 5,000,000 as equity or equity equivalents
• Board of Directors with majority non-executive members and independent Chairman meeting FINMA governance standards
• Comprehensive risk management framework covering credit, market, operational, and compliance risks
• Qualified Chief Risk Officer, Chief Compliance Officer, and Chief Financial Officer with banking sector experience
• Robust AML/CFT procedures, sanctions screening, and customer due diligence per AMLA Art. 3-15
• Secured IT infrastructure with encryption, multi-factor authentication, and cybersecurity incident response plan
• Segregated client assets and comprehensive custody safeguards for managed portfolios
• Professional indemnity insurance with minimum CHF 10,000,000 coverage and annual compliance certifications

Application Process

1. 1.Prepare comprehensive banking license application including business plan, financial projections for 3 years, and organizational structure
2. 2.Submit to FINMA with detailed descriptions of management team, board composition, and regulatory experience
3. 3.Provide extensive AML/KYC documentation, compliance manuals, and information security policies reviewed by external assessor
4. 4.Undergo extensive FINMA review including on-site due diligence of premises, IT infrastructure, and governance arrangements
5. 5.Respond to detailed FINMA information requests regarding risk management, capital planning, and business continuity
6. 6.Final FINMA decision following multi-stage review; applicant may pursue administrative law remedies if denied

Ongoing Obligations

• Submit quarterly reports of regulatory capital, liquidity ratios, and large exposures to FINMA within 45 days
• Annual independent audit of financial statements and internal control systems by FINMA-approved auditor
• Monthly AML suspicious activity reporting and quarterly compliance certifications to FINMA
• Maintain minimum equity ratio of 10% and minimum liquidity coverage ratio per FMIA requirements
• Conduct annual stress testing on capital and liquidity and submit remediation plans to FINMA
• Notify FINMA of material changes to business model, management, significant shareholders, or risk profile within 5 days

Key Requirements

• Minimum CHF 100,000 paid-up share capital or CHF 100,000-1,000,000 for fund management depending on fund type
• FinIA registration or full authorization status with FINMA for asset management activities
• Qualified portfolio manager and compliance officer with investment management and crypto asset experience
• Comprehensive investment policy documentation detailing asset allocation, crypto exposure limits, and risk controls
• Custody arrangements with qualified Swiss banks or regulated custodians meeting CISA requirements
• Professional indemnity insurance with minimum CHF 2,000,000 coverage for fund management liabilities
• Transparent fee structures and conflicts-of-interest policies disclosed to clients in prospectuses
• Annual independent audit and quarterly compliance certifications for fund operations and asset valuation

Application Process

1. 1.Prepare detailed business plan including investment strategy, crypto asset focus, and target client base
2. 2.Submit FinIA registration or license application to FINMA with organization structure and management CVs
3. 3.Provide fund documentation including prospectus, management regulations, custody agreements, and valuation methodology
4. 4.Obtain FINMA approval of investment guidelines specifying maximum crypto exposure and leverage restrictions
5. 5.Finalize custody and third-party service provider agreements with regulatory approval
6. 6.FINMA issuance of registration or license with conditions on fund reporting and investor disclosures

Ongoing Obligations

• File annual fund reports with FINMA within 4 months of fiscal year-end including portfolio composition and performance
• Quarterly valuation of crypto assets using independent pricing and reconciliation against exchange rates
• Monthly internal reconciliation of fund assets and client account balances with independent custody verification
• Maintain professional indemnity insurance continuously and notify FINMA of coverage changes
• Submit annual compliance certifications regarding investment restrictions and conflict-of-interest policies
• Conduct annual independent audits of financial statements and fund accounting with results filed to FINMA

Key Requirements

• 100% reserve backing in Swiss francs or equivalent G10 currencies held in segregated accounts
• Weekly independent audits of stablecoin reserves with certification by FINMA-approved auditors
• Guaranteed par-value redemption within one business day at 1:1 ratio to underlying fiat currency
• Restricted business model prohibited from investing reserves in securities, derivatives, or crypto assets
• Choice of regulatory pathway: FinTech license, Full banking license, or bank guarantee arrangement
• Comprehensive stablecoin governance documentation including reserve management and emergency protocols
• Smart contract code audits by independent security firm with documented remediation procedures
• Clear disclosure to users regarding reserve composition, redemption terms, and regulatory status

Application Process

1. 1.Determine stablecoin regulatory pathway based on expected issuance volume and business model
2. 2.If pursuing FinTech license: submit with stablecoin-specific documentation per FINMA 06/2024 Guidance
3. 3.Establish reserve account with Swiss bank partner and obtain segregation confirmation
4. 4.Prepare comprehensive stablecoin prospectus and user terms including reserve policy and redemption mechanics
5. 5.Submit reserve management and audit protocols to FINMA for review and approval
6. 6.Final approval by FINMA contingent on reserve setup and chosen regulatory pathway compliance

Ongoing Obligations

• Weekly independent audits of stablecoin reserves with auditor reports submitted to FINMA monthly
• Maintain 100% segregated reserves in Swiss banks with monthly reconciliation and attestation
• Quarterly reporting to FINMA of stablecoin circulation, redemption activity, and reserve composition
• Immediate notification to FINMA of any reserve shortfalls, failed redemptions, or critical issues
• Annual compliance certifications regarding reserve adequacy and adherence to restricted business model
• Update and maintain comprehensive cybersecurity and operational resilience plans with annual testing