Quick Answer
Yes, cryptocurrency is legal and regulated in Switzerland.
- A clear legal framework, including the DLT Act, governs crypto activities.
- Activities are subject to strict Anti-Money Laundering (AML) laws and FINMA oversight.
Legal Status of Crypto in Switzerland
Cryptocurrency is legal in Switzerland, which has cultivated a reputation as a global hub for digital assets by fostering an environment of innovation and legal clarity. The country has proactively established a supportive framework through specific legislation, such as the DLT Act, to govern crypto activities rather than prohibit them. All crypto services operate under the supervision of regulatory authorities, primarily the Swiss Financial Market Supervisory Authority (FINMA), and must comply with strict Anti-Money Laundering (AML) regulations.
Current Regulations
Switzerland regulates cryptocurrency not through a single, bespoke law, but by adapting its existing financial market legislation. A cornerstone of this approach is the DLT Act, which came into force on August 1, 2021, creating a legal framework for tokenized assets and new DLT-based trading venues. The Swiss Financial Market Supervisory Authority (FINMA) oversees the sector, applying principles like "same risks, same rules" and issuing specific guidelines for various crypto services. While cryptocurrencies are not considered legal tender, activities like issuing tokens or providing financial services can trigger requirements under banking and anti-money laundering laws.
Regulatory Authorities
Several key authorities collaborate to regulate and enforce Switzerland's crypto landscape.
- Swiss Financial Market Supervisory Authority (FINMA): As the primary financial market regulator, FINMA is responsible for licensing crypto exchanges, issuing guidelines, and ensuring market integrity. It enforces anti-money laundering rules and has the power to take action against unauthorized crypto activities to protect investors.
- Swiss Federal Council: The Swiss Federal Council acts as the executive branch of the government, setting the overall policy direction for blockchain technology. It is responsible for initiating and enacting key legislation, such as the DLT-Act, which provides legal certainty for the industry.
- Swiss National Bank (SNB): As the country's central bank, the Swiss National Bank focuses on maintaining financial stability and oversees payment systems. It also monitors the impact of digital assets on the financial system and engages in research on central bank digital currencies.
- Federal Tax Administration (FTA): The Federal Tax Administration is responsible for all matters related to the taxation of digital assets. It provides official guidance and publishes year-end exchange rates for major cryptocurrencies to ensure consistent tax assessment.
- Self-Regulatory Organisations (SROs): SROs are FINMA-recognized bodies that supervise non-banking financial intermediaries, including many crypto exchanges and wallet providers. They are tasked with monitoring their members' compliance with Anti-Money Laundering Act (AMLA) obligations, such as customer due diligence.
- Money Laundering Reporting Office Switzerland (MROS): The MROS functions as the country's central financial intelligence unit. It receives and analyzes suspicious activity reports from financial intermediaries, including those involving crypto transactions, to combat illicit financing.
Historical Context
Switzerland's regulatory journey began with an open, innovation-friendly stance. As early as 2016, the canton of Zug began accepting Bitcoin payments for public services. A significant policy shift occurred in 2018 when FINMA published its ICO guidelines, classifying tokens and clarifying the application of financial laws. This move provided much-needed legal certainty. The evolution culminated with the approval of the DLT-Law in 2020, which came fully into force in August 2021. This landmark legislation established a clear framework for tokenized securities and DLT trading venues, cementing Switzerland's status as a leading crypto hub by fostering innovation while ensuring investor protection.
Compliance Requirements for Businesses in Switzerland
Businesses operating in Switzerland's crypto space must adhere to a stringent set of compliance rules rooted in the country's financial market legislation. These obligations, primarily outlined in the Anti-Money Laundering Act (AMLA), are designed to prevent illicit activities and ensure market integrity. Key requirements include comprehensive AML checks, robust KYC procedures, and other mandatory compliance measures.
- AML Checks: Financial intermediaries must verify the identity of their contracting partners, identify the beneficial owners of assets, and clarify the background of any unusual transactions. Enhanced due diligence is required for high-risk clients, such as politically exposed persons (PEPs). Firms must also implement internal controls, train staff, and report any suspicion of illicit activity to the Money Laundering Reporting Office (MROS).
- KYC Requirements: Know Your Customer (KYC) rules mandate that firms identify customers using valid documents (e.g., passport, commercial register extract) at the start of a relationship. They must also establish and, since 2023, verify the identity of the ultimate beneficial owner. According to AML regulations, client data must be kept current through regular, risk-based reviews.
- Other Mandatory Procedures: Beyond initial checks, businesses must follow strict operational protocols. This includes freezing assets upon reporting suspicious activity to MROS and adhering to a "tipping-off" ban, which prohibits informing the client. Firms must maintain all due diligence records for at least 10 years after a business relationship ends. Regular audits are also required to ensure ongoing compliance with all regulations.
Why this matters for Cross-Border Payments
For businesses facilitating cross-border payments between Switzerland and India, these stringent regulations introduce a significant layer of complexity. Swiss financial intermediaries must apply their rigorous AML and KYC standards to Indian counterparties, which can be challenging given the differing regulatory landscapes. This can lead to increased operational costs, transaction delays during enhanced due diligence, and potential friction if Indian entities struggle to meet Switzerland's strict verification requirements.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark provides an infrastructure layer to simplify crypto-native payments, addressing cross-border complexities. Its core products, Lightspark Connect and Grid Switch, offer two distinct pathways. Connect lets businesses access the Bitcoin Lightning Network directly, with Lightspark managing technical hurdles like liquidity and routing. Grid Switch enables regulated institutions to use this global network via domestic real-time payment rails, bypassing direct crypto handling. This dual approach provides instant, low-cost global payments, tackling the friction points of traditional finance.
To help businesses navigate Switzerland's regulatory environment, Lightspark's platform is built to be 'compliance-ready.' It facilitates compliance for regulated institutions through features like audit-ready reporting and flexible custody options. For instance, Grid Switch integrates support for the travel rule and OFAC screening, helping firms meet their obligations under the Anti-Money Laundering Act (AMLA). These tools empower businesses to leverage crypto's efficiency while adhering to their own rigorous compliance frameworks.
To learn more about how Lightspark is modernizing global payments, visit their official website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
- Haeberli, Daniel, et al. “Blockchain & Cryptocurrency Laws and Regulations 2025 – Switzerland.” Global Legal Insights, Global Legal Group, 25 Oct. 2024, www.globallegalinsights.com/practice-areas/blockchain-cryptocurrency-laws-and-regulations/switzerland/.
- Kaur, Guneet, and Murtuza Merchant. “An overview of the cryptocurrency regulations in Switzerland.” Cointelegraph, 15 Sept. 2023, cointelegraph.com/learn/articles/an-overview-of-the-cryptocurrency-regulations-in-switzerland.
- Stengel, Cornelia, and Lea Ruckstuhl. “Anti-Money Laundering Laws and Regulations Switzerland 2025.” ICLG.com, Global Legal Group, 19 May 2025, iclg.com/practice-areas/anti-money-laundering-laws-and-regulations/switzerland.
- Swiss Financial Market Supervisory Authority. “At a glance: list of crypto services.” FINMA, www.finma.ch/en/documentation/dossier/dossier-fintech/auf-einen-blick-aufstellung-der-krypto-dienstleistungen/.
- Swiss Financial Market Supervisory Authority. “Combating money laundering in the context of financial market supervision.” FINMA, www.finma.ch/en/supervision/cross-sector-issues/combating-money-laundering/.
- Switzerland, State Secretariat for International Finance. “Blockchain / DLT.” SIF, 20 Sept. 2023, www.sif.admin.ch/en/blockchain-dlt-en.
- “Switzerland and Cryptocurrency.” Freeman Law, 2022, freemanlaw.com/cryptocurrency/switzerland/.
