Switzerland

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A firm may provide cryptocurrency services as long as it possesses the relevant permission issued by the Swiss Financial Market Supervisory Authority (FINMA).  FINMA regulates any person or legal entity who carries out regulated activity in Switzerland.  The “Swiss Code of Obligations” and FINMA provides the legal framework used to established rules and regulations for financial services firm's licensing in Switzerland.  It is constantly being amended to keep pace with the ever changing cryptocurrency business. Unlike many countries that are resistant to crypto currency, the Swiss have embraced the future of cryptocurrencies and digital assets and the legal framework is evolving constantly.  Once authorised, a person/company can run the permitted activities in Switzerland, including banks accounts, and then apply in other jurisdictions to provide cross-border services.

Based on the recommendations of FINMA, almost all activities in the field of cryptocurrency and digital assets' business fall under one of the following licenses (depending on the business model, one activity may fall under several licenses at the same time):

• Financial intermediary license (the most common)
• Banking license
• Investment fund license
• Dealer in securities license

As for the ICO itself (Initial Coin Offering), FINMA regulates this activity, dividing produced tokens into three categories:

• payment tokens: a synonym for cryptocurrency (as a rule, fall under the license of a financial intermediary)
• utility tokens: a token designed, for example, to provide digital access to an application or service (as a rule, is not subject to licensing, but in some cases may be equated with securities)
• asset tokens: a token whose function is similar to stocks and bonds (as a rule, they fall under the license for trading activity in the field of securities).

The minimum capital requirement for a cryptocurrency and digital assets' licence is related directly to the minimum capital required for a Swiss SA company. The amount is 100,000 CHF.

It is essential to demonstrate "mind and control" from within Switzerland; and, therefore, a physical presence and people are required.  You must also designate a Compliance Officer and a Chief Executive Officer who must be located in Switzerland, and each must pass fit and proper tests and be approved persons by the regulator.

Depending on the size of the firm, sales, technical, compliance and accounting staff may also be required.

The experience and qualifications of personnel constitute one of the most important elements of a successful application.  It is very important to be able to locate and select qualified individuals, who would constitute the minimum required key personnel of your firm.  These individuals must be approved by the regulator.

We can handle all relevant subjects which include selection of the personnel, immigration and work permits, drafting employment contracts and, most importantly, check adequacy of the candidates against the key position in your firm.   

The regulator requires you to disclose most all aspects and details of your business. Our business is to ensure you meet the regulator's requirements, and we will review what you currently have or complete what is needed for you.

• Business and Financial Plan
• Supervisory and AML/CTF Manuals
• KYC of beneficial owners, directors, controllers and affiliates
• Proof of Professional Indemnity Insurance

• Capital adequacy requirements must be calculated regularly
• Annually, an audited financial statement
• Monthly, interim financial statements prepared in accordance with generally accepted accounting principles
• As needed, any material changes to the firm, its operations or people

Switzerland is home to some of the world's largest financial institutions and there are a number of banks serving the financial services sector.  We will facilitate bank introductions and account openings.

Switzerland is a major center in the financial world and hosts many of the participants in the financial services industry.  We will facilitate and establish the institutional relationships you need to build a successful business.

When you engage with us, our scope of service covers all of the aspects you need in order to get your crypto licence:

• Provision of regulatory guidance
• Company incorporation
• Approved Person’s fit and proper tests - Employing local directors, officers and staff
• Establishing an office
• Facilitating bank accounts
• Introduction to accountant and auditor relationships
• Management and supervision of the application
• Preparation of all client-facing legal documents including client business terms and disclosures
• Completing the business plan, compliance manuals, employment and outsourcing agreements  

12-24 months.