Swiss Blockchain Regulation in 2025: FINMA's Updated Framework and What's Coming in 2026

FINMA in 2025: The Regulatory Evolution

The Swiss Financial Market Supervisory Authority (FINMA) enters 2025 with the most comprehensive track record of any crypto-specialised financial regulator. Having published its ICO guidelines in 2018, supervised the first digital asset banking licences in 2019, and overseen the DLT Act’s implementation from 2021, FINMA’s 2025 priorities represent the third generation of Swiss crypto regulation — moving beyond licensing and classification toward operational supervision, cross-border coordination, and emerging technology governance.

The institutional groundwork laid through the FINMA Crypto Banking Framework remains the foundation. What is new in 2025 is the application of that framework to activity types — DeFi, staking, AI-blockchain convergence — that did not exist at regulatory scale when the framework was designed, and the external pressure created by the EU’s MiCA regulation on Swiss firms’ cross-border business.

FINMA’s 2025 Regulatory Priorities

DeFi: Identifying Effective Decision-Makers

Decentralised finance (DeFi) protocols present FINMA with a structural challenge: traditional financial regulation targets identifiable legal entities with defined responsibilities. DeFi protocols are designed to be operated by code, governed by token holders, and accessed permissionlessly by anyone. No single entity controls a DeFi protocol in the way a bank controls its operations.

FINMA’s analytical approach — articulated in its 2021 annual report and refined through subsequent engagement — focuses on the concept of “effective decision-makers.” FINMA’s position: even if a protocol is technically decentralised, the individuals or entities who designed it, deployed it, hold governance tokens that give them material influence, or receive economic benefit from its operation may have regulatory obligations.

In 2024-2025, FINMA has intensified this analysis in the context of DeFi protocols with Swiss-nexus founders or teams. The key questions:

Treasury control: Does any individual or entity control a DeFi protocol’s treasury in a way that constitutes asset management? If so, FINMA asset manager authorisation may be required.

Intermediation: Does the protocol operate as a financial intermediary — accepting assets from users and providing financial services (lending, exchange, yield) in return? If so, banking, securities dealer, or payment services authorisation may be required.

AML obligations: FINMA has indicated that DeFi protocols with identifiable operators may have AML obligations under the Anti-Money Laundering Act (AMLA), even if the protocol itself is automated. The financial intermediary status analysis determines whether AMLA applies.

FINMA has not published a formal DeFi guidance document equivalent to the 2018 ICO guidelines. The analysis is conducted through supervisory engagement with specific entities and through annual report commentary. This has created some regulatory uncertainty for Swiss DeFi founders — a gap that the industry, through the Crypto Valley Association, has been pressing FINMA to address with more formal guidance.

Stablecoin Treatment: Banking Act Implications

FINMA’s treatment of stablecoins has become more significant as stablecoin issuance has grown from a crypto-native phenomenon to an institutional financial product. FINMA’s position, consistently applied since 2019, is that stablecoin issuers who accept the equivalent of deposits from the public may be conducting regulated deposit-taking — potentially triggering Swiss banking licence requirements.

The mechanism: if a stablecoin issuer accepts CHF (or other fiat currencies) from the public in exchange for stablecoin tokens, and those tokens are redeemable at par for the deposited currency, the issuer may be holding public deposits. Holding public deposits without a banking licence is a criminal offence under Swiss law.

The consequence: most fiat-backed stablecoin structures cannot legally be operated from Switzerland without a banking licence, unless they are structured to avoid deposit-taking (e.g., by restricting issuance to institutional counterparties, operating through a licensed intermediary, or structuring the instrument to clearly not constitute a deposit claim). See the companion article on stablecoins and FINMA classification for the full analysis.

In 2025, FINMA has been engaging with Swiss franc stablecoin projects seeking to structure compliant CHF-pegged instruments. The commercial demand for a compliant CHF stablecoin — from DeFi protocols, cross-border payment infrastructure, and RWA settlement use cases — is substantial. The regulatory path, however, requires either a banking licence (high capital and compliance cost) or a narrowly structured product that avoids deposit-taking characterisation.

AI and Blockchain Convergence

2024-2025 has seen the emergence of a new category of crypto application: AI-adjacent blockchain projects, including decentralised AI computation networks, AI model marketplaces with token-based access, and prediction markets that use AI-generated content. FINMA has not yet published specific guidance on AI-blockchain projects but has indicated that its standard token classification framework applies: the analysis focuses on the economic rights conferred by the token, not on the technology used to generate the underlying value.

The more immediate concern FINMA has flagged is the use of AI in financial services operations conducted by crypto firms. FINMA’s supervisory focus includes: whether AI-assisted trading systems constitute regulated algorithmic trading requiring disclosure; whether AI-generated financial advice triggers FinSA obligations; and whether AI-enhanced custody and risk management systems at licensed banks meet FINMA’s operational resilience requirements.

AMLA Updates: Crypto Intermediary Obligations

The Swiss Anti-Money Laundering Act (Geldwäschereigesetz, GwG) applies to financial intermediaries — and financial intermediaries include crypto asset service providers that accept or transfer assets on behalf of clients. FINMA’s 2024 update to its AML guidance for crypto intermediaries addressed several areas where the original 2018 framework needed refinement:

Travel Rule Implementation

The Financial Action Task Force’s (FATF) Travel Rule requires virtual asset service providers (VASPs) to transmit sender and beneficiary information with crypto transfers above threshold amounts. Switzerland implemented the Travel Rule through AMLA amendments effective from January 2023, with a CHF 1,000 threshold for transfers.

In 2024-2025, FINMA issued updated guidance on Travel Rule implementation for specific scenarios:

Self-hosted wallet interactions: When a VASP’s client transfers assets to or from a self-hosted (unhosted) wallet, the VASP must apply enhanced due diligence — typically including wallet ownership verification. FINMA has refined the evidence standards acceptable for such verification, providing more guidance on what constitutes sufficient evidence of self-hosted wallet ownership.

DeFi interactions: When a VASP’s client interacts directly with DeFi protocols, the Travel Rule’s counterparty identification requirements are practically impossible to apply (DeFi protocols have no beneficiary identification mechanism). FINMA’s guidance provides a risk-based approach for DeFi interactions, focusing on monitoring rather than upfront identification.

Cross-border transfers: For transfers between Swiss and foreign VASPs, FINMA has clarified the AMLA requirements for confirming the VASP status and AML compliance quality of foreign counterparties.

Higher-Risk Customer Categories

FINMA’s 2025 AML guidance updates the treatment of “higher-risk customer” categories for crypto intermediaries. Additions and refinements include:

• Politically exposed persons (PEPs) using crypto asset services: Enhanced due diligence requirements that now explicitly address crypto-specific risk indicators (e.g., use of privacy-enhancing technologies, transaction patterns inconsistent with stated business purpose)
• Jurisdictional risk: Updated country risk classifications reflecting FATF’s greylisting decisions — countries added to or removed from FATF greylist lists require updated customer risk scoring
• DeFi protocol-related flows: Customers whose transaction history shows significant DeFi protocol interactions are now explicitly in the higher-monitoring category

MiCA’s Indirect Impact on Swiss Firms

The EU’s Markets in Crypto-Assets (MiCA) regulation — fully effective from December 30, 2024 — does not directly apply to Swiss firms. Switzerland is not an EU member state, and MiCA is an EU regulation. However, MiCA creates substantial indirect obligations for Swiss crypto firms serving EU clients.

The Market Access Problem

MiCA establishes a licensing framework for crypto-asset service providers (CASPs) operating within the EU. An EU-resident retail client seeking to purchase or custody crypto assets through a crypto firm must (in principle) use a MiCA-licensed CASP. A Swiss firm without MiCA licensing in an EU member state cannot serve EU retail clients on a licensed basis.

The consequences for Crypto Valley:

Sygnum and AMINA: Both banks have Luxembourg regulatory presences. Luxembourg’s financial regulator (CSSF) is the likely MiCA passport anchor for Swiss digital asset banks wishing to serve EU clients. Both institutions have been in the process of obtaining MiCA-compliant authorisation for their Luxembourg operations.

Smaller Swiss crypto firms: Companies without the capital to establish EU subsidiaries and pursue MiCA licensing face a binary choice: restrict their client base to Switzerland and non-EU jurisdictions, or establish EU presences at significant cost. This has created a structural competitive advantage for well-capitalised Crypto Valley institutions over smaller firms.

The equivalence question: Switzerland and the EU have been engaged in bilateral financial services discussions since the failure of the framework agreement negotiations. A crypto-specific equivalence determination — analogous to the third-country regime provisions in MiCA — would significantly ease the market access challenge. As of early 2026, no formal equivalence decision is in place. The Crypto Valley Association has identified MiCA equivalence as a priority lobbying objective.

Stablecoin Rules Under MiCA

MiCA establishes specific rules for asset-referenced tokens (ARTs) and e-money tokens (EMTs) — categories that encompass most commercially significant stablecoins. Key MiCA stablecoin requirements:

• ARTs and EMTs require authorisation from an EU member state regulator
• Issuers must hold reserves meeting MiCA’s composition and custody requirements
• Significant ARTs and EMTs (exceeding thresholds of daily transaction volumes) are subject to enhanced requirements including EBA direct supervision
• Non-EU stablecoin issuers must have an EU-authorised entity or cannot offer their stablecoins in the EU

For Swiss stablecoin projects, this creates both a barrier (the CHF stablecoin market in the EU requires an EU entity) and an opportunity (Switzerland’s legal clarity makes it an attractive base for stablecoin issuers serving non-EU markets).

SNB Project Helvetia III: Wholesale CBDC Progress

The Swiss National Bank’s Project Helvetia has been running since 2020, exploring the use of wholesale central bank digital currency (w-CHF) for settlement of tokenised securities. Phase III, conducted in 2024, moved from pilot to near-operational status.

Project Helvetia III Results

Phase III operationalised the settlement of SDX-listed DLT securities using w-CHF issued directly to financial institutions by the SNB. Key achievements:

Central bank money settlement: DLT securities on SDX were settled using w-CHF rather than commercial bank deposits, eliminating commercial bank settlement risk and providing the highest-quality settlement medium available in Swiss finance.

Cross-system settlement: Phase III demonstrated settlement across systems — SDX’s DLT infrastructure and traditional payment system infrastructure — with w-CHF functioning as the bridge currency between the two.

Institutional participation: Multiple Swiss financial institutions participated in Phase III, providing market validation that the w-CHF settlement model is operationally viable for Swiss banking.

The SNB has been careful not to commit to a permanent wholesale CBDC deployment — Phase III was explicitly presented as an experiment. However, the technical success of Phase III and the stated SNB interest in supporting Swiss financial centre competitiveness in DLT securities means that operational w-CHF deployment at SDX is a plausible 2026 development.

The DLT Trading Facility Licence: SDX and Beyond

The DLT trading facility licence — created by the DLT Act — has SDX as its sole holder as of early 2026. FINMA has received expressions of interest from other entities, but the capital requirements, operational standards, and FINMA supervisory engagement required to obtain the licence are substantial barriers.

The entities most likely to obtain a DLT trading facility licence in 2025-2026:

Incumbent financial market infrastructure operators: Swiss stock exchange subsidiaries or affiliates of established financial market infrastructure operators have the regulatory relationships and capital to pursue the licence.

International blockchain-native exchanges: Firms like Coinbase, Bitstamp, or Kraken have explored Swiss regulatory presence but have focused on SRO-VQF membership or securities dealer licences rather than full DLT trading facility status.

Consortium models: A consortium of Swiss banks and financial intermediaries might pursue a shared DLT trading facility licence to provide DLT securities trading infrastructure collectively — a model consistent with SIX Group’s shared infrastructure ownership model.

FINMA has indicated willingness to license additional DLT trading facilities if applicants meet the statutory standards. The market case — providing institutional competition to SDX in DLT securities trading — is commercially viable given the projected growth of the tokenised securities market.

Enforcement Actions 2024–2025

FINMA’s enforcement record in the crypto sector in 2024-2025 demonstrates both the maturity of Swiss regulation and the consequences of non-compliance:

Unregulated exchange operations: FINMA issued cease-and-desist orders to several crypto exchange operators conducting regulated activities (securities dealing, deposit-taking) without the required FINMA authorisations. The regulated activities framework — established through a decade of FINMA guidance — is now mature enough that ignorance of regulatory requirements is not an accepted defence.

AML enforcement: FINMA conducted supervisory reviews of multiple SRO-VQF member crypto intermediaries, resulting in enhanced supervisory measures and, in some cases, referrals to criminal authorities for AMLA violations. The Travel Rule compliance reviews were particularly significant, with several firms required to remediate their systems for cross-chain and self-hosted wallet transaction monitoring.

Unlicensed stablecoin issuers: FINMA issued warnings and initiated proceedings against operators of CHF-denominated stablecoin-like instruments that had been structured to avoid banking licence requirements but where the economic reality — accepting public deposits — triggered the banking act regardless of labelling.

Outlook for 2026

Several regulatory developments are expected to crystallise in 2026:

DeFi formal guidance: FINMA has signalled that formal DeFi guidance — clarifying the effective decision-maker analysis and the AML obligations of DeFi protocol-related entities — is under development. Publication is expected in 2026, potentially through an update to the 2018 ICO guidelines or a standalone DeFi guidance paper.

MiCA equivalence engagement: Swiss-EU bilateral financial services negotiations are expected to include crypto-specific market access discussions in 2026. A MiCA equivalence framework for Switzerland — even a partial one covering specific categories of crypto service provider — would significantly change the market access landscape for Crypto Valley firms.

Wholesale CBDC operational decision: The SNB is expected to make a decision in 2026 on whether to proceed with an operational wholesale CBDC deployment at SDX. A positive decision would make Switzerland the first major jurisdiction to integrate central bank money into a live regulated DLT securities exchange.

Staking guidance update: FINMA is expected to update its guidance on staking services, addressing the specific regulatory treatment of restaking (protocols that use staked assets as collateral for additional yield-generating positions) and liquid staking tokens (tokenised representations of staked positions that can be traded or used as collateral).

Frequently Asked Questions

How does FINMA regulate DeFi protocols in 2025? FINMA applies an “effective decision-maker” analysis — identifying individuals or entities with material control over or economic benefit from a DeFi protocol, even if the protocol is nominally autonomous. These parties may have regulatory obligations including AML compliance and, depending on activities, banking or securities dealer authorisation. FINMA has not yet published formal DeFi-specific guidance comparable to its 2018 ICO guidelines, but formal guidance is expected in 2026.

Does MiCA apply to Swiss crypto companies? MiCA directly applies only within the EU. Swiss companies are not required to comply with MiCA for their Swiss operations. However, Swiss crypto firms serving EU-resident clients must use MiCA-authorised entities within the EU — typically requiring the establishment of an EU subsidiary (Luxembourg is the preferred jurisdiction for Swiss digital asset banks) and obtaining MiCA authorisation there.

What is the DLT trading facility licence and who holds it? The DLT trading facility licence was created by the Swiss DLT Act (2021) and allows the holder to operate a regulated trading platform for DLT securities, combining trading and settlement in a single blockchain-native infrastructure. As of early 2026, SIX Digital Exchange (SDX) holds the only DLT trading facility licence in Switzerland. Additional licences may be granted to eligible applicants meeting FINMA’s statutory requirements.

What is Project Helvetia and why does it matter? Project Helvetia is the Swiss National Bank’s research programme exploring wholesale central bank digital currency (w-CHF) for DLT securities settlement. Phase III (2024) demonstrated live settlement of SDX-listed tokenised bonds using w-CHF, making Switzerland the most advanced jurisdiction globally in integrating central bank money with regulated blockchain securities infrastructure. An operational decision on permanent w-CHF deployment is expected in 2026.

How does FINMA’s 2025 AML guidance affect crypto firms? FINMA’s 2025 AMLA guidance updates include refined Travel Rule implementation requirements (particularly for self-hosted wallet interactions and DeFi protocol flows), updated higher-risk customer categories for crypto-specific risk patterns, and enhanced requirements for politically exposed persons using crypto services. Swiss crypto intermediaries that are SRO-VQF members must implement these updates through their compliance programmes.

Internal Links

• FINMA Crypto Banking Framework: How Switzerland Licences Digital Asset Banks
• The Swiss DLT Act: How Switzerland Legalised Tokenised Securities
• Stablecoins: FINMA Classification and Swiss Legal Treatment
• Real-World Asset Tokenisation in Zug
• Sygnum Bank: The World’s First Regulated Digital Asset Bank
• Zug vs Singapore: The Definitive Comparison