On 22 October 2025, the Federal Council opened the consultation on the amendment of the Financial Institutions Act (FINIA). The aim is to strengthen the legal framework for innovative financial technologies – in particular regarding stablecoins and other crypto-based assets – to enhance client protection, and to safeguard the attractiveness of the Swiss financial center.

The draft introduces two new licensing categories:

• A category for payment institutions, which will replace the current “fintech license” and allow the issuance of specific stablecoins; and

• A category for crypto institutions, covering entities that provide services related to other cryptocurrencies.

Payment Institutions – Summary of Proposed Regulatory Changes

• Introduction of a new licensing category for institutions that issue stablecoins or provide comprehensive payment services.

• Replacement of the existing fintech license under Article 1b of the Banking Act (BankA). See below section 4 for an assessment of the implications of the proposal for already licensed fintech companies.

• Removal of the current limit of CHF 100 million for public deposits.

• Funds received by payment institutions will henceforth be referred to as “client funds”, which are to be distinguished from “public deposits”, the acceptance of which will remain reserved for banks.

Crypto Institutions – Summary of Proposed Regulatory Changes

• New licensing category for providers of crypto-based assets with trading characteristics, for activities such as custody (including custodial wallets and staking services), client trading, proprietary trading, and crypto exchange services.

• Adjustment of the regulations governing settlement accounts with the aim of strengthening Swiss crypto exchanges.

Customer Protection as a Core Element of the Proposal

• Extension of the Financial Services Act (FinSA) to crypto-service providers: Certain provisions — such as suitability assessments, information duties, and rules on managing conflicts of interest — will also apply to providers of crypto-based financial services in future.

• Mandatory publication of a White Paper for public offerings of crypto-based assets with trading characteristics, for the issuance of stablecoins, or for the admission of such assets to trading on a DLT trading system.

• Enhanced client protection, through the segregation of client funds in the event of bankruptcy.

Current Assessment of the Significance for Existing Licensed Fintech Companies

• The draft contains explicit transitional provisions in Art. 74b of the Draft FINIA (VE-FINIA).

• Institutions that already hold a license under an existing financial-market law (e.g. under Art. 1b of the Banking Act) will not require a new license upon entry into force of the revised FINIA.

• However, these institutions must comply with the new requirements within one year of the new provisions entering into force (see Explanatory Report, p. 72 / Art. 74b para. 1 VE-FINIA).

• Art. 74b para. 1 (third paragraph) and para. 2 (second paragraph) VE-FINIA further provides clarifications and distinctions regarding activities that will require authorization in the future (see Explanatory Report, p. 72 et seq.).

Next Steps

• Consultation period until February, 6 2026;

• Evaluation of submissions and preparation of a revised draft law following the consultation;

• Expected entry into force of the new provisions as from 2027.

Conclusion

The Federal Council’s initiative enhances legal certainty and the competitiveness of the Swiss financial center in the FinTech and crypto sectors. The proposed amendments aim to establish a balanced regulatory framework that fosters innovation while strengthening client protection.

We remain available to assist institutions in the Swiss financial market in assessing and clarifying the potential implications of the proposal.