Switzerland Crypto License

Switzerland Crypto License 

• Navigating the regulatory landscape for a Switzerland Crypto License requires a strategic approach tailored to the city-state’s progressive stance on digital assets. Switzerland, renowned for its forward-thinking regulatory framework and robust ecosystem, stands as an ideal jurisdiction for cryptocurrency ventures. Within this dynamic environment, Tetra Consultants offers specialized services to facilitate the acquisition of cryptocurrency licenses.  

• With a deep understanding of Switzerland’s regulatory requirements, including stringent anti-money laundering regulations, Tetra Consultants guides businesses through the intricate licensing process. From initial consultation to final approval, Tetra Consultants streamlines procedures, empowering clients to establish a compliant presence in Switzerland’s thriving crypto market with confidence. Thus, our expertise services include: 

• Register company in Switzerland 

• Accounting and tax obligations 

• Nominee director and shareholder services 

• Company secretary and registered office address services 

• Obtaining business license and trade permits. 

• Cryptocurrency licenses 

Types of Switzerland Crypto Licenses 

• In Switzerland, there are different types of crypto licenses available for conducting legitimate cryptocurrency operations. Obtaining such a license safeguard both the project team and clients, fostering a secure environment for cryptocurrency business activities. 

• By engaging with Tetra Consultants, you can acquire different

• Types of Switzerland Crypto License as per your business requirements. Moreover, you will also be facilitated by various other business services including offshore financial licenses for your business. 

Crypto exchange license: 

• Obtaining a crypto exchange license in Switzerland is a rigorous yet rewarding process overseen by FINMA, the Swiss Financial Market Supervisory Authority. Compliance with stringent anti-money laundering practices is paramount, requiring exchanges to diligently know their customers, monitor transactions, and promptly report any suspicious activities. Applicants must register a firm within Switzerland, demonstrate the ability to adhere to comprehensive KYC/AML policies, and ensure that company officials maintain impeccable reputations. Once licensed, crypto exchanges benefit from a favorable corporate tax rate of 12-18% and the assurance of operating within a stable regulatory environment for at least the next five years. 

Financial Market Supervisory Authority (FINMA) identifies the main types of business licenses: 

Banking license:  

• This license empowers financial institutions to function as banks, offering conventional banking services alongside cryptocurrency-related solutions. Swiss banks embracing crypto friendliness extend services like cryptocurrency storage and trading in addition to traditional financial products. 

Fintech license:  

• Widely sought-after, the fintech license permits financial transactions and intermediation, enabling crypto entities to accept public deposits of up to 100 million Swiss francs without interest investment obligations. 

Investment fund license:  

• With an investment fund license, fund managers are authorized to manage collective fund assets on behalf of clients, ensuring compliance with regulatory standards. 

DLT trading platform license:  

• Introduced under the DLT Act in 2021, this license enables crypto firms to operate multilateral trading platforms for DLT securities and other assets, aligning with regulatory frameworks for secure trading environments. 

Who is the issuing authority of Switzerland Crypto Licenses? 

• The Swiss Financial Market Supervisory Authority (FINMA) is tasked with overseeing the integrity of cryptocurrency operations, including the issuance of crypto licenses and the enforcement of anti-money laundering (AML) measures. Progressive cantons within the country are actively working to attract and catalyze the growth of crypto companies by fostering collaborative ecosystems.  

Which legal framework is overseeing the Switzerland Crypto license? 

• The Swiss Federal Act on the Adaptation of Federal Law to Developments in Distributed Ledger Technology (DLT Act) serves as a primary legal framework governing cryptocurrency operation in Switzerland. It establishes regulations concerning crypto licensing, trading, anti-money laundering (AML), financial market infrastructure for cryptocurrency trading, and bankruptcy procedures. The DLT Act aims to safeguard the integrity and stability of the Swiss financial market, holding blockchain companies accountable for any investor harm resulting from misleading information or breaches of legal requirements.

• Designated under the DLT Act, the Swiss National Bank is tasked with ensuring the stability of the financial market infrastructure. This includes supervising DLT trading facilities, central securities depositories, and payment systems in accordance with the Financial Market Infrastructure Act. Regulated entities are obligated to furnish all necessary information and documentation to identify risks to financial market stability upon request from the Swiss National Bank. 

• Furthermore, certain cryptocurrency firms operating within or from Switzerland are mandated by law to adhere to anti-money laundering (AML) regulations as outlined in: 

• Anti-Money Laundering Act,  

• Anti-Money Laundering Ordinance, and  

• FINMA Anti-Money Laundering Ordinance. 

Advantages of Switzerland Crypto Licenses 

Legal certainty and regulatory stability:  

• Switzerland boasts a well-established regulatory framework for crypto, set to remain unchanged for at least the next 5 years. Obtaining a cryptocurrency exchange license from FINMA ensures operational clarity within a robust legal framework, fostering trust among users and investors. 

Enhanced financial infrastructure:  

• Swiss crypto firms enjoy access to a favorable banking landscape, with numerous crypto-friendly banks and payment institutions offering cryptocurrency account services. Over 55% of Swiss banks are poised to introduce digital asset services within 1-3 years, presenting significant growth opportunities for local crypto companies. 

Reputable corporate image:  

• Switzerland’s reputation for financial stability and innovation bolsters the global standing of companies operating under Swiss licenses. Such credibility enhances trust among users and investors, positively impacting the exchange’s reputation on a global scale. 

Tiered tax system and canton selection:  

• Switzerland’s three-tier income tax system, including federal, cantonal, and municipal levels, offers flexibility in tax planning. With a federal income tax rate of 8.5% and cantonal rates ranging from 11.9% to 21%, companies can choose a canton with the most favorable tax conditions. 

Influential blockchain community:  

• Switzerland houses numerous cryptocurrency firms, solidifying its position as a leading global blockchain hub. Crypto Valley stands out as the most mature blockchain center globally, with major players like AllianceBlock, Bancor, and Cardano establishing their headquarters in the country. 

Innovation-friendly environment and government support:  

• Switzerland’s Federal Council actively supports fintech innovation, strategically removing market barriers and fostering an innovation-friendly environment. Legal measures are continuously implemented to promote emerging technologies like distributed ledger technology (DLT) and blockchain, positioning Switzerland as a key player in the global fintech landscape. 

Diverse trading and service offerings:  

• A crypto exchange license Switzerland enables a wide array of trading pairs and services, enhancing the platform’s appeal to traders seeking diverse investment opportunities. This versatility contributes to the platform’s competitiveness and attractiveness within the crypto market. 

Regulatory requirements of Switzerland Crypto Licenses 

Establishment of a company:  

• Establish a company in Switzerland, such as a joint stock company, limited liability company, or corporation with an unlimited number of partners. 

Detailed business plan:  

• Prepare a comprehensive business plan outlining the purpose, objectives, target market, products, services, risks, governance, and compliance measures. 

Sufficient capital:  

• Maintain sufficient capital, with a minimum requirement of CHF20,000, to cover operational and financial risks. 

Solid organizational structure:  

• Develop a robust organizational structure ensuring proper management, supervision, control, and reporting mechanisms. 

Registered office:  

• Establish a registered office within Switzerland for the cryptocurrency business. 

Swiss resident manager: 

• Appoint at least one manager who is a Swiss resident. 

AML officer requirement:  

• Designate an Anti-Money Laundering (AML) officer who is also a Swiss resident. 

Effective risk management policies:  

• Implement effective risk management policies and procedures. 

Internal control and audit functions:  

• Maintain adequate internal control and audit functions to ensure compliance and mitigate risks. 

Key personnel requirements: 

• At least one shareholder is required to obtain a crypto license in Switzerland. 

• At least one director is required for the company to be eligible for a crypto license in Switzerland. 

• There is no residency requirement for shareholders. 

• There must be one resident director or nominee director to get the Switzerland Crypto License.  

Bank account requirements: 

• Crypto companies operating in Switzerland are mandated to hold a banking account, with a minimum authorized capital of CHF100,000 required for establishment. This capital must be deposited in a block account held by a Swiss-based bank. 

Procedure to obtain Switzerland Crypto Licenses 

Step 1: Company registration 

• Embarking on the journey to secure a Switzerland Crypto License begins with company registration, ideally opting for an AG or GmbH structure. Choose between a Limited Liability Company (GmbH) or a Corporation (AG) as the entity type. Ensure the name is distinctive and concludes with AG or GmbH for legal validity. Tetra Consultants streamline this process and offer name reservation services, ensuring a seamless start to your Switzerland Crypto License. 

Step 2: Comply with pre-requirements 

• In order to acquire Switzerland Crypto License, it is required for the company to comply with the following pre-requirements for company incorporation. Moreover, if you are worried about complying with all such requirements you can engage with Tetra Consultants. Our experts will provide you with various services such as nominee director and shareholder services, regulatory compliance consulting services and many more. 

• Capital requirements: 

• For a GmbH, a minimum capital of CHF20,000 is mandatory. 

• For an AG, the minimum equity stands at CHF100,000. 

• Preparation of documents: 

• Required documents include the articles of association, notarized versions of documents, and other pertinent paperwork. 

• Representation and legal personality: 

• At least one individual domiciled in Switzerland must represent the GmbH. 

• The GmbH attains its legal personality upon registration in the commercial register. 

• Articles of Association: 

• The company’s articles of association must encompass provisions concerning the company’s name, business purpose, registered capital, business office, and shareholder details. 

• Shareholder and director requirements: 

• A minimum of 1 shareholder (Individual or Corporation Entity) is mandated without residency requirements. 

• A minimum of 1 resident is required, with the possibility for directors and shareholders to be the same individual. 

• The company does not require shareholders to be resident of Switzerland. 

Step 3: Prepare description of company 

• Tetra Consultants will then further proceed to craft a comprehensive overview of the company’s business model and create a graphic representation illustrating the organizational structure. Tetra Consultants offers expert assistance in the legal drafting of essential documents required for company incorporation in obtaining a Switzerland Crypto License, ensuring compliance and efficiency throughout the process. 

Step 4: Draft compliance policies 

• Once the company description is crafted Tetra Consultants will move forward to develop and prepare a basic (mandatory) Anti-Money Laundering/Know Your Customer (AML/KYC) policy. 

Step 5: Office and team setup 

• Further, Tetra Consultants facilitate the process of securing a Switzerland Crypto License by assisting in renting office space and hiring local employees. We meticulously prepare corporate documents, establish suitable organizational structures, and develop internal regulations fully compliant with Swiss AMLA regulations. With our expertise, we ensure seamless navigation through these crucial steps, enabling clients to establish a solid foundation for their crypto ventures in Switzerland. 

Step 6: Corporate bank account opening 

• Tetra Consultants conducts a comprehensive analysis to identify the most suitable banks or Electronic Money Institutions (EMIs), comparing their risk appetites with the client’s based on pre-established Anti-Money Laundering (AML) policies. We collect essential documents from the client, including flow of funds, source of wealth, and purpose of account opening.  

• To obtain a Switzerland Crypto License, a business bank account is imperative. Tetra Consultants facilitates the process, ensuring a seamless experience. Within 4 weeks of company incorporation, clients receive their business bank account, thanks to our efficient corporate bank account services. 

Step 7: Submit licensing application 

• Tetra Consultants streamlines the process by assisting in preparing and compiling the application package with all necessary documentation for submission to FINMA. We ensure compliance by promptly providing any additional documents requested by the Regulator. Tetra Consultants arranges and facilitates personal meetings to present the business case effectively. For clients with legal entities among shareholders or management, we handle the submission of corporate documents in apostilled form. Additionally, Tetra Consultants offers expert guidance in ensuring that documents requiring execution in specific languages meet regulatory requirements. 

Step 8: Obtain the license 

• Switzerland Crypto License is granted upon the successful completion of preceding stages. The licensed company must commence its operations within six months of obtaining the license to avoid revocation. Following licensing, any alterations in the licensee’s structure and activities, including key documents, top management, and technical setup, must be promptly reported to FINMA. 

Documents requirements of Switzerland Crypto Licenses 

• Preferred company name 

• Passport copies of all shareholders and directors 

• Address of residence confirmation (utility bill) from all directors and shareholders 

• Power of attorney 

• A business model of the company (detailed description) 

• Company structure chart 

• Articles of Association and Memorandum of Association 

• Drafted basic (mandatory) Anti-Money Laundering/Know Your Customer (AML/KYC) policy. 

• For foreign citizens – copies of residence permit in Switzerland 

• Copies of job references, CV’s and certificates of education of company owners and directors reflecting relevant education and experience 

• Swiss criminal records certificate proving absence of criminal convictions (original copy which must be no more than six months old) 

• Foreign citizens who have lived in Switzerland for less than five years must present a criminal records certificate issued either by the previous country of residence or home country  

• Debt enforcement register certificate (original copy which must be no more than six months old) 

• If the application is submitted by the legal representative, their power of attorney is required (certified copy of the power of attorney). 

• List of all participants with at least 5% direct or indirect ownership (up to the level of the beneficial owner with voting and equity). 

• Detailed information on equity (structure, distribution, nominal value, etc.). 

Report and auditing requirements for Switzerland Crypto License 

• Tetra Consultants ensures compliance with Swiss financial reporting regulations outlined in the Swiss Code of Obligations, applicable to companies with revenues exceeding CH₣ 500,000 (approximately Є491,763). We offer comprehensive support to crypto companies, emphasizing flexibility in reporting currency and language options—either in Swiss francs or the company’s functional currency, and in one of Switzerland’s official languages or English. With Tetra Consultants, signed hard copies of annual and audit reports are meticulously maintained for the mandatory 10-year period. Our tailored services streamline financial reporting processes, ensuring adherence to regulatory requirements.
  
• An ordinary audit is mandatory if a company exceeds two of the following amounts during two consecutive financial years: 

• The balance sheet’s cumulative value stands at CHF 20 million (equivalent to approximately Є 19,670,520). 

• Sales surpass CHF 40 million (approximately Є 39,341,040). 

• The average number of full-time employees annually is a minimum of 250. 

• Companies failing to exceed at least two of the aforementioned thresholds are subject to a restricted audit, with associated costs estimated at around CHF 2,500 (approximately Є 2,458). 

• A Swiss company can be completely exempt from audit if the following conditions are met: 

• It has up to 10 annual full-time employees 

• It is subject to a limited audit, but all shareholders vote to eliminate it. 

• Tetra Consultants emphasizes the necessity for crypto license holders to furnish detailed anti-money laundering (AML) reports to regulatory bodies, showcasing the integrity upheld throughout their operations. For those seeking to establish their crypto ventures in esteemed jurisdictions, our seasoned consultants at Tetra Consultants are primed to offer expert guidance.  

• With an in-depth understanding of Switzerland’s crypto license legislation, we facilitate company establishment and crypto license acquisition seamlessly. Furthermore, we extend our expertise to financial accounting, reporting, and regulatory compliance consulting services. Schedule a personalized consultation with Tetra Consultants today to embark on your journey in this dynamic market. 

Tax requirements of Switzerland Crypto License 

• The tax treatment of crypto firms hinges on their economic activities’ nature and intent, with cryptocurrencies typically classified as assets rather than fiat money, subject to relevant taxation laws. Taxation is influenced by the company’s tax residence status, with residents taxed on worldwide income and non-residents solely on Switzerland-sourced income. Switzerland’s tax administration system is intricate, involving the Federal Tax Administration (FTA), cantons, and municipalities. Federal tax rates remain steady, while cantonal rates are annually defined and published on official canton websites. Despite location-based variations in taxation frameworks, the tax year typically aligns with the accounting year. 

• Most crypto licensees are obligated to pay the following taxes at the federal, cantonal or communal levels: 

• Corporate Income Tax (CIT) – 12%-21% 

• Capital Gains Tax (CGT) – 0.001%-0.5% 

• Value Added Tax (VAT) – 7.7% 

• Withholding Tax (WHT) – 35% 

• Social Security Contributions (SSC) – 0.5%-5.3% 

• Issuance Stamp Duty (ISD) – 1% 

• Tetra Consultants provides insights into Switzerland’s corporate tax landscape, spanning federal, cantonal, and communal levels. The Federal Corporate Income Tax, set at 8.5% on post-deduction profits, contrasts with varying Cantonal and Communal rates due to differing taxation frameworks. 

• Our team at Tetra Consultants offers personalized consultations to identify the most favorable Swiss location for your crypto business. We specialize in accounting and tax obligation services, ensuring timely submission of tax returns. Capital Gains Tax, predominantly at the cantonal level, applies selectively to crypto activities, with exemptions for ICO proceeds and certain token transfers. VAT exemption applies to payment token transactions, treating them akin to fiat currency. Switzerland’s extensive double taxation agreements safeguard foreign income, with eligible companies potentially enjoying cantonal and communal tax exemptions, ensuring a competitive effective tax rate of 7.83%-11% on foreign-sourced profits. 

How long does it take to obtain Switzerland Crypto Licenses 

• Once you have started engagement with Tetra Consultants you can acquire Switzerland Crypto License within xxx weeks of engagement. This process involves multiple stages, including the establishment of a private limited company, preparation of a thorough application, and collection of necessary documentation such as a business plan and risk management system. Despite potential variations, Tetra Consultants estimates that the overall duration for acquiring a crypto license in Switzerland typically spans around xxx weeks. 

Looking to obtain Switzerland Crypto Licenses 

• Tetra Consultants recognizes the substantial process involved in obtaining a cryptocurrency license in Switzerland, with an average timeline of xxx weeks. Our firm offers comprehensive support throughout this journey, facilitating the establishment of a private limited company, preparation of a meticulous application, and gathering essential documentation like business plans and risk management systems. Additionally, Tetra Consultants emphasizes its diverse range of business services, including offshore company incorporation, to cater to the varied needs of our clients in navigating the regulatory landscape of the cryptocurrency industry in Switzerland. 

• Contact us to know more about Switzerland Crypto License and our experts will revert within the next 24 hours.  

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