Fintech 2026

SWITZERLAND Trends and Developments Contributed by: Kilian Schärli, Reto Luthiger, Andrea Trost and Diana Lafita, MLL Legal

Disclosure of crypto-based assets by banks FINMA issued Guidance 3/2025, clarifying its supervi - sory practice on how banks must disclose and report crypto-based assets. FINMA reiterated its classifica - tion of tokens into payment tokens (cryptocurrencies such as Bitcoin), asset tokens (tokenised financial instruments), and other cryptographically represented assets. Under certain conditions, crypto-based assets are treated as custody assets even where they do not qualify as securities, meaning they are recognised off-balance sheet and are therefore segregated in the event of the bank’s insolvency. Banks must neverthe - less provide adequate disclosure in the notes of the annual financial statements to ensure transparency and appropriate risk disclosure. CARF Switzerland implemented the OECD’s Crypto-Asset Reporting Framework (CARF) on 1 January 2026, requiring crypto service providers to report non-Swiss clients to the Swiss Federal Tax Administration (SFTA). New licensing categories tailored to crypto-based assets (the Crypto Bill) The Swiss Federal Council initiated a consultation in October 2025 to overhaul the regulation around the issuance and custody of crypto-based assets and fintechs. The proposed amendment to the Financial Institutions Act introduces two new tailored licensing categories: Payment instrument institutions shall replace the current fintech licence and be permitted to issue so- called value-stable crypto-based means of payment, which are stablecoins pegged to a single fiat currency. This licence type has generally been well received, and criticism has mainly been in connection with the following aspects: • the “value-stable crypto-based means of pay - ment”, or stablecoin, is reduced to one single fiat currency, forcing all other stablecoins to be issued following the standard regulatory regime, which is expected to be narrowed by the elimination of certain exceptions based on which many operators in the fintech marked had been operating; and

• banks have raised concerns that the introduction of the new licence type obliges banking groups to establish a separate legal entity. Crypto institutions are presented as the new licence category for trading and providing custody of “crypto- based assets with trading characteristics”, covering Bitcoin, Ether and cryptocurrencies that do not qual - ify as financial instruments. Previously, many players were operating under the exceptions of the 60-day settlement period or the default guarantee provided by a bank. What is clearly not subject to a licence is the offering of non-custodial wallet services, provided that the non-custody wallet providers do not have the power to dispose over customer assets. In general, the market has responded positively to the proposed amendments, as they help boost investor trust in crypto-assets and foster an environment in which strong market players can establish themselves and achieve sustainable growth. The two new licence categories are less onerous than a banking licence or a securities firm licence, but go beyond a pure AML compliance set-up (with which licence holders must, in any event, continue to comply). The consultation period ended in February 2026, and entry into force is not expected before 2027 at the earliest. A key component of the bill concerns the sandbox/exemp - tion regime, which is expected to be addressed in a second step through an amendment at the ordinance level. In summary, Switzerland’s fintech landscape is char - acterised by its innovative, flexible but solid regulatory framework, robust digital infrastructure, and collabo - rative ecosystem that fosters co-operation and growth in the financial services sector.

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