FINMA and financial innovation regulation
A comprehensive look at FINMA’s approach to fintech, cryptocurrencies, blockchain and new forms of financial intermediation in the Swiss market.
Introduction
Switzerland is internationally recognised as a financial centre open to innovation. FINMA supports the technological evolution of the financial sector while ensuring a clear, proportionate and client-focused regulatory framework.
FINMA’s objective is to foster innovation without compromising the protection of creditors, investors and policyholders. To this end, it adopts a technology-neutral approach: the same rules apply to the same activities, regardless of the technology used.
With the introduction of the fintech licence and legislative changes for distributed ledger technology (DLT), Switzerland now has one of the most advanced regulatory frameworks in the world for financial innovation.
Fintech licence and new categories
Switzerland has introduced specific regulatory tools to facilitate market access for new fintech operators, with proportionate requirements.
Fintech licence
Allows acceptance of public deposits up to CHF 100 million without lending obligations, with simplified capital and organisational requirements.
Regulatory sandbox
Up to CHF 1 million in accepted public deposits, activities are not subject to licensing requirements, encouraging experimentation.
Innovation accounts
FINMA allows innovative institutions to develop and test new products in a controlled environment with an open regulatory dialogue.
Proportionate approach
Requirements are calibrated to the complexity and risks of the activity: the simpler the business model, the lighter the regulatory obligations.
Cryptocurrencies and digital assets
FINMA regulates cryptocurrencies and digital tokens according to their economic function, applying a substance-over-form approach.
Token classification
FINMA distinguishes between payment tokens, utility tokens and investment tokens (security tokens), applying the relevant regulation to each.
ICOs and token offerings
Verifies that Initial Coin Offerings comply with capital-raising, transparency and anti-money laundering rules, publishing specific guidelines.
Stablecoins
Tokens pegged to currencies or underlying assets are subject to specific requirements regarding reserves, governance and investor protection.
Crypto-asset custody
Banks and securities dealers may hold crypto-assets on behalf of clients, subject to prudential and segregation requirements.
DLT Act and infrastructure
Switzerland adopted the DLT Act to establish the legal foundations for market infrastructures based on distributed ledger technology.
DLT trading facility
A new category of market infrastructure enabling multilateral trading of DLT securities, with tailored requirements.
Registered uncertificated securities
The law recognises DLT-registered uncertificated securities («Registerwertrechte»), providing legal certainty for asset tokenisation.
Bankruptcy segregation
Crypto-assets held on behalf of clients are segregated from the intermediary’s estate in bankruptcy, protecting holders.
Interoperability
FINMA promotes open standards and interoperability between traditional and DLT-based infrastructures, fostering integration.
Risks and investor protection
FINMA closely monitors risks linked to financial innovation, ensuring that client protection remains central.
Public warnings
Regularly publishes warnings about unlicensed operators, scams and specific risks related to cryptocurrencies and fintech products.
Cyber risks
Oversees the cyber resilience of financial institutions, requiring protection plans, penetration testing and incident management.
AML and crypto
Rigorously applies anti-money laundering rules to cryptocurrency transactions, including the Travel Rule for transfers between intermediaries.
Education and transparency
Provides clear information to the public on the risks of new financial technologies, promoting an informed approach to investing.
In summary
Through FINMA, Switzerland positions itself as a global hub for regulated financial innovation. The fintech licence, DLT Act and technology-neutral approach offer a unique regulatory framework.
The goal is to foster responsible innovation while protecting creditors, investors and policyholders, consolidating Switzerland’s reputation as an innovative and reliable financial centre.
Fintech • Regulation • Innovation