Cryptocurrency License in Switzerland
In addition to Estonia, Switzerland is one of the top countries worldwide where a crypto license can be obtained. With cutting-edge advancements in the field, crypto investment is supported here. It, therefore, has become an ideal place to explore online trading.
Various types of crypto licenses are on offer in the country, partnering with a GMBH or Swiss AG company. Businesses can apply for their crypto license from the Swiss Federal Financial Market Supervisory Authority (FINMA). The business dealings and operations the company undertakes will influence the license applied for.
Switzerland’s goal with crypto is to provide the ideal opportunity for businesses to venture into the most modern advancements in business trading. The aim is to develop a ‘blockchain and fintech nation.’ With the chance of receiving cash from the public, the Swiss FINMA enables businesses to save time and energy that’s often spent in relation to the policy agreement.
These are the four crypto-related licenses that can be obtained in Switzerland today:
- Fintech License
- Investment Fund Licence
- Exchange License
- Banking License
Advantages of Obtaining a Cryptocurrency License in Switzerland
- The Swiss are headlining the crypto market and have been making it a priority for growth from the very beginning. There are no other countries that match them when it comes to experience in this field.
- Bodies such as SBA and FINMA support businesses, helping with advice with regards to blockchain and trading.
- The government in Switzerland has involvement with providing FINMA files and ICO/ITO/IEO regulations surrounding crypto.
- Inexpensive corporate taxes.
- The attractive tax regime in different Cantons.
- Canton Zug occupies the Crypto Valley, where crypto trading is common.
- Many skilled investors occupy the region, which makes it the ideal environment for trading. The Crypto Valley Association is heavily involved in encouraging Switzerland to continue developing crypto innovations and options while communicating regularly with government officials to aid its progression.
- Out of the 10 largest ICOs that started in 2017, Switzerland was home to four of them
- It’s one of the top countries when it comes to economic stability. Establishing itself as neutral, it can withstand even the difficulties at a regional level.
Cryptocurrency License in Switzerland and Legal Frameworks
Financial bodies that aren’t regarded as independent must obtain their license from FINMA in conjunction with anti-money laundering laws.
These requirements are presented by the Anti-Money Laundering Act (AMLA): Article 14. A business must meet them in order to receive a crypto license for trading.
Financial bodies must comply with each of these terms to be accepted:
- Have official endorsement for business trading and become listed on the commercial register.
- All internal policies are required to follow AMLA guidelines and the business must have staff adequately organized to ensure operations will be successful and transparent.
- Company staff, as well as administrators, need to be reputable, can show they will follow AMLA regulations, and operate appropriately and with candor.
- The completed application must show that the company’s capable of fulfilling the licensing stipulations in totality and in accordance with all relevant acts.
- Where applications are completed by another party on behalf of the company, the person must sign all documentation and provide proof as the power of attorney
- When all documentation has been received, FINMA will begin processing the crypto license application
What is the Process of Obtaining a License for Operations with Cryptocurrency?
- Collection and submission of necessary documents
- This includes payment of all fees associated with opening a company and obtaining a license
- Establishment of a Swiss legal entity
- Opening a bank account
- Filling out an application for a license to operate with cryptocurrency
- The application is submitted along with the business plan
- Coordination with FINMA to make sure that the documents and the application are filled out correctly
The total time taken for the processing of applications to be completed is anywhere from three to four months. However, this is a general time frame and applications may be processed earlier or later, depending on workload.
Minimum Capital Threshold
The minimum capital required is 100, 000 CHF and depends on types of services you provide.
Directors and Shareholders
The company must have a minimum of both one shareholder and one director for a license to be granted. One of the directors needs to reside in Switzerland.
Payment of three types of taxes is required: taxes, federal taxes, and canton taxes.
Federal tax amounts to 7%.
Every canton tax has a separate cost with all lying somewhere between the regions of 11% and 24%. For example, Zug’s tax is set at 14%.
We will Guide you Through the whole Process of Obtaining a Cryptocurrency License in Switzerland
Preliminary analysis of the business model;
Full support for the establishment of a company;
Assistance in the development of internal policies and procedures;
Full support for obtaining a cryptocurrency license in Switzerland;
Submission of all documents and applications to the supervisory authorities;
Legal address for the company. If necessary, assistance in finding a separate office and hiring qualified personnel;
Payment of all state, notary fees and charges;
Legal and accounting advice.