Switzerland FINMA License
Switzerland is one of Estonia and one of the most popular cryptocurrency license countries in the world. It publicly encourages the potential of blockchain technology and is eager to provide the best environment for continuous innovation. Switzerland has several different encryption licenses used in conjunction with Swiss AG or GMBH companies. Depending on the nature of the project, the company can choose a permit from the Swiss Federal Financial Market Supervisory Authority (FINMA).
There are currently four different types of Swiss Crypto licenses available:
Digital Currency Exchange licence
Investment fund licence
Advantage of Swiss Crypto Licence:
The government is active in encouraging the crypto environment and has issued relevant guide ;
Low corporate tax rate ;
Stable political and economic environment ;
Possibility of exempting dividend tax ;
Friendly business environment ;
Through "Tax Reform and AHV Financing" (planned for 2020), the company's profit tax rate could be significantly reduced ;
Confidential – Beneficial owner and shareholder’s detail are not available to the public, but director’s detail does ;
Requirements for financial intermediaries:
All financial intermediaries - whether supervised by FINMA or monitored by an SRO - must comply with a range of due diligence and disclosure requirements in relation to combating money laundering, including the following:
They must verify the identity of the contracting partner and identify the beneficial owner of the assets brought in.(KYC)
If a business relationship or transaction appears unusual or if there are indications that the funds stem from criminal activity or serve to finance terrorism, the financial intermediary must clarify the financial background and purpose of the business relationship or transaction.
Business relationships and transactions with heightened risk, such as business relationships with clients in high-risk countries or with politically exposed persons (PEPs) must be recorded and clarified in greater detail.
The financial intermediaries must implement the necessary organisational measures to prevent money laundering and financing of terrorism, including issuing internal directives, training staff and performing inspections.
If there is any suspicion of money laundering in a business relationship, the financial intermediary must submit a report to the Money Laundering Reporting Office (MROS) of the Federal Department of Justice and Police.
Anti-money laundering regulations apply to the blockchain
FINMA has consistently applied the Anti-Money Laundering Act to blockchain service providers since their emergence. In its guidance published previously, FINMA provides information about this technology-neutral application of the regulation to payment transactions on the blockchain. Institutions supervised by FINMA are only permitted to send cryptocurrencies or other tokens to external wallets belonging to their own customers whose identity has already been verified and are only allowed to receive cryptocurrencies or tokens from such customers. FINMA-supervised institutions are thus not permitted to receive tokens from customers of other institutions or to send tokens to such customers. This practice applies as long as information about the sender and recipient cannot be transmitted reliably in the respective payment system.
Min-Paid up capital is 100,000 CHF
There must be at least one shareholder
At least one director or officer needs to have single signatory power and residence in Switzerland
Registered office address in Switzerland required
General meetings required (physically in Switzerland only)
A notarized copy of passport
A notarized copy of utility bills/ proof of address within three months
A bank Reference Letter
CV dated and signed
2 Character Reference Letters
Proof of source of funds
Clean criminal records
Educational qualification certificate
Detailed Business plan
Company manuals (including but not limited to - corporate governance, AML/Compliance, security, IT manual, complaints, remuneration policy, etc.)
Shareholding company certificate, company registration and constitution(Apostilled)
Shareholding company ultimate beneficial owner and director notarized copy of passport, utility bills/ proof of address within three months(Apostilled)
License application document preparation assistance
AML CTF program, compliance program and risk assessment
Application lodgment to FINMA
Maintanence after application success
Duration to set up: 3-4 month