Swiss crypto regulation: Federal Council opens FIA consultation

The Swiss Federal Council launched a consultation proposing amendments to the Financial Institutions Act to tighten swiss crypto regulation and clarify oversight for digital-asset providers.

Summary

• What does the switzerland crypto consultation propose?
  • stablecoin regulatory framework?
• How will the financial institutions act change crypto service oversight?
  • Will crypto firms need a banking licence or follow swiss aml rules?
• What are the implications for swiss financial centre competitiveness? In brief:

What does the switzerland crypto consultation propose?

The consultation, opened on 23 October 2025, seeks to expand the scope of the Financial Institutions Act to cover a broader range of crypto-asset activities. It targets market integrity, consumer protection and clearer issuer responsibilities.

The process runs for a 106-day consultation period until 6 February 2026, giving market participants a defined window to respond.

stablecoin regulatory framework?

Proposals specifically address stablecoins , aiming for a formal stablecoin regulatory framework that would require issuers to meet capital and custody standards. Details on reserves and redemption rights remain to be defined as of 23 October 2025.

FINMA has emphasised reserve transparency and robust custody arrangements, principles reflected in the consultation’s focus on redemption mechanics and reserve attestation.

How will the financial institutions act change crypto service oversight?

Regulators propose clearer licensing paths and stronger supervision of custodians, exchanges and other service providers.

The draft would enhance crypto service oversight and impose conduct and reporting duties closer to those required of traditional banks. Industry feedback is invited on proportionality and implementation timing.

Will crypto firms need a banking licence or follow swiss aml rules?

The paper contemplates tighter anti‑money laundering measures and a possible route for crypto firms to apply for a banking licence, though eligibility thresholds are open to consultation.

It asks whether certain business models should trigger banking-equivalent requirements or specific AML obligations. Note: key thresholds and timelines are not final (deadline 6 February 2026).

What are the implications for swiss financial centre competitiveness? In brief:

Proponents say clearer rules will boost legal certainty and attract institutional capital while preserving innovation. They argue that alignment with established financial standards could encourage larger market participants to establish a Swiss presence and scale operations.

Critics warn that heavier compliance costs may push smaller firms abroad and raise entry barriers. In brief, the consultation aims to balance stronger oversight with competitive positioning for Switzerland as a hub for digital finance.

Practitioners note that aligning tokenised services with bank-style supervision typically forces firms to upgrade custody segregation, operational controls and independent audits.

For context on how Swiss policy links to broader fintech strategy, see an analysis of recent national measures. For stability and market precedent in stablecoin debates, consult an overview of recent regulatory cases.

For banking‑license issues, read about crypto firms seeking bank charters. For AML developments affecting digital‑asset firms, see coverage of recent compliance updates.

The consultation text and related documents are published on the official Swiss Federal Council site and interested parties should review the draft before the 6 February 2026 deadline.