SWITZERLAND Law and Practice Contributed by: Oliver Widmer and Niku Gholamalizadeh, Pestalozzi
subject to cantonal net wealth taxes. Capital gains taxes may apply under certain circumstances. In sum, the possible tax consequences for the par- ties involved in cryptocurrency transactions must be analysed on a case-by-case basis under current fed- eral and cantonal tax laws (and existing guidelines). A binding advance tax ruling is recommended for sig- nificant transactions. 1.2.5 Insolvency The general Swiss insolvency regime applies to digi- tal asset firms. The only crypto-specific addition was introduced in 2021 by the DLT Act. Thereby, an explicit legal basis was stipulated for the segregation of cryp- to-assets held for the beneficial owner by a custodian, in the event of the latter’s bankruptcy. Such segregation of crypto-assets is subject to two prerequisites. • First, the custodian (ie, the debtor in bankruptcy) must have undertaken towards the beneficial owner (ie, the third-party in bankruptcy) to keep the crypto-assets available for the beneficial owner at all times, meaning that the beneficial owner has uninterrupted power of disposal over the crypto- assets. • Secondly, the crypto-assets must be individually attributable to the third-party or to a community of owners, and the individual share of the third party of such communal assets must be known. If the above criteria are met, the beneficial owner has a claim for the surrender of the crypto-assets against the bankruptcy estate of the custodian, however, it should be noted that the cost arising from such sur- render must be borne by the beneficial owner, not the bankruptcy estate. In January 2026, FINMA further clarified these require- ments through Guidance 01/2026. Banks may hold crypto-assets as segregable custody assets ben- efiting from bankruptcy protection, either in individ- ual custody or in collective custody with clear client shares. Where custody is delegated to foreign custo- dians, equivalent prudential supervision and insolven- cy protection must be ensured. For collective invest-
ment schemes, crypto-assets must generally be held with a Swiss custodian bank, with delegation to third parties permitted only if equivalent standards are met and investors are appropriately informed. 1.2.6 Industry and Trade Bodies Please refer to 1.1.5 Industry and Trade Bodies , which applies equally to the crypto-asset industry. 2. Regulation 2.1 Regulators and International Alignment FINMA is the most relevant regulatory body to busi- nesses or individuals using blockchain technology or operating fintech companies in Switzerland. As super- visor and regulator, FINMA is responsible for protect- ing investors and creditors. It also ensures the proper functioning of the Swiss financial market and may, therefore, publish guidelines, information for individu- als or public warnings. In the field of blockchain and fintech, FINMA can be approached for a pre-assess- ment concerning tokens or business models. Applying a risk-based approach when dealing with institution’s requests, FINMA is able to adapt its practice imme- diately in order to take increased market risks into account. Switzerland has implemented Financial Action Task Force (FATF) recommendations on virtual assets and VASPs, applying the same AML obligations to cryp- to-assets as to fiat currency. In 2021, the AML Ordi- nance was amended to lower the customer identifica- tion threshold for crypto exchange transactions from CHF5,000 to CHF1,000, going beyond minimum FATF standards. FINMA has also confirmed that block- chain-based payment systems and stablecoins are assessed against international standards, such as the Principles for Financial Market Infrastructures (PFMI). 2.2 Crypto-Asset Regulatory Frameworks FINMA distinguishes between three token categories: • payment tokens (cryptocurrencies used as means of payment); • utility tokens (providing access to a digital applica- tion or service); and
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