Switzerland was one of the first countries to give crypto assets a clear legal framework, and Zug has become the centre of the industry. The articles collected here explain the DLT Act and ledger-based securities, the tokenisation of rights and commodity positions, the custody of crypto assets in insolvency, supervision by FINMA, the treatment of stablecoins, and the taxation of crypto assets for companies and individuals. They also look at the use of stablecoins in international trade and at the regulation of digital assets in Hong Kong, Singapore, the European Union and the United States.
Switzerland gave crypto assets a clear legal framework early, and Zug became the centre of an industry that now spans exchanges, custodians, tokenisation platforms and specialised banks. The DLT Act of 2021 made tokenised securities legally effective and protected crypto assets held by custodians in insolvency, which gives investors a degree of legal certainty.
For entrepreneurs and investors from abroad, the Swiss approach offers rules that were written with blockchain technology in mind and a supervisory authority that has published its practice. The guidance on initial coin offerings that FINMA issued in 2018 set out how tokens are classified, and it still shapes the way projects are planned and presented to banks and investors today.
A foreign founder usually faces the same questions at the start. Does the token qualify as a security, a means of payment or a utility token? Does the business need a licence, or membership of a self-regulatory organisation for anti-money laundering purposes? And which Swiss bank will open an account for a company that holds or handles crypto assets?
Banks and service providers apply the Anti-Money Laundering Act to crypto businesses in much the same way as to traditional financial intermediaries, and they expect clear documentation of the origin of funds and of wallet histories. Private investors need to know how their holdings are treated for wealth tax and income tax, which depends largely on whether they act as private investors or as professional traders.
The articles explain the DLT Act, how FINMA classifies tokens and stablecoins, which licences crypto businesses need, how crypto assets are taxed, why projects choose Zug, how crypto assets are traced and recovered, and how stablecoins are used in trade between Africa and China.
Crypto disputes and asset recovery in Switzerland
Crypto assets can be moved across the world in minutes, but they leave a permanent trail on the blockchain, and… Read more Digital Assets · ZugZug and the Crypto Valley: companies, foundations and the ecosystem
In 2014 the Ethereum Foundation was established in Zug, and within a few years the small canton had become the… Read more Digital Assets · FundamentalsTaxation of crypto assets in Switzerland
Switzerland taxes crypto assets under its ordinary tax laws, and the Federal Tax Administration has set out its practice in… Read more Digital Assets · PracticeLicences for crypto businesses in Switzerland
Switzerland does not have a single crypto licence. A crypto business needs the licence that corresponds to what it actually… Read more Digital Assets · FundamentalsHow FINMA classifies tokens: payment, utility and asset tokens
Whether a token issue in Switzerland is subject to securities law, banking law or anti-money laundering rules depends on what… Read more Digital Assets · FundamentalsThe DLT Act: ledger-based securities and crypto assets in Swiss law
In 2021 Switzerland adapted its civil, insolvency and financial market law to blockchain technology in a single federal act, commonly… Read more Africa · Digital AssetsStablecoins in the trade between Africa and China
In the trade between Africa and China, payment in stablecoins is already common practice. African importers who cannot obtain enough… Read more Digital Assets · OverviewCrypto-assets and digital assets in Switzerland
Switzerland was one of the first countries to adapt its civil and financial market law to blockchain technology. Businesses can… Read more