Disclaimer: This information is general in nature and does not replace consultation with a specialist. Switzerland has established itself as the world's leading jurisdiction for blockchain and cryptocurrency businesses. Over the past decade, the country has built a unique ecosystem combining progressive regulation, political stability, and access to capital. The "Crypto Valley" in Canton Zug hosts over 1,100 blockchain companies with a combined valuation exceeding USD 584 billion as of end-2024—a 56% increase from the previous year, according to Chambers and Partners (2025). > "The Swiss blockchain industry, where the top 50 companies are valued at $593 billion and median funding exceeds global medians, reflects vision and resilience. Switzerland must maintain its advantage by fostering a collaborative environment that attracts talent, capital, and transformative projects." — Matthias Ruch, Founder and CEO of CV VC, 2024. This guide provides a comprehensive roadmap for launching a blockchain business in Switzerland in 2026, covering legal structures, registration procedures, banking access, regulatory compliance, taxation, and the unique advantages of the Swiss ecosystem. ## Crypto business in Switzerland: why this is the best jurisdiction for your blockchain startup Switzerland offers a rare combination of regulatory clarity, financial infrastructure, and innovation-friendly policies that make it the optimal jurisdiction for blockchain ventures. The country's approach is built on three pillars: transparent legal frameworks, access to traditional and crypto-native financial services, and a mature ecosystem of talent, investors, and service providers. Regulatory clarity through the DLT Act. Switzerland adopted the Distributed Ledger Technology Act (DLT Act) in February 2021, becoming one of the first countries to provide comprehensive legal recognition for tokenized securities and blockchain-based financial instruments. The law introduced DLT securities as a new asset class and created licensing frameworks specifically designed for blockchain businesses. FINMA (Swiss Financial Market Supervisory Authority) has published detailed guidelines on token classification, ICO procedures, and AML/KYC requirements, eliminating regulatory ambiguity. Political and economic stability. Switzerland ranks second globally in political stability according to the World Bank's 2024 Governance Indicators. This stability extends to property rights, contract enforcement, and the rule of law—critical factors for long-term business planning. The Swiss franc remains one of the world's most stable currencies, and the country's neutrality provides protection from geopolitical risks. Access to capital and crypto-friendly banking. Between 2020 and 2024, blockchain companies in the Crypto Valley raised CHF 2.7 billion in venture capital funding. Switzerland is home to FINMA-licensed crypto banks like SEBA and Sygnum, which provide custody, trading, and corporate banking services specifically designed for digital asset businesses. Traditional Swiss banks have also begun offering services to vetted blockchain companies, though with stricter due diligence requirements. Mature ecosystem and talent pool. The Crypto Valley Association, founded in January 2017, coordinates a network of over 41,000 professionals, companies, and investors. Major blockchain projects including Ethereum Foundation, Cardano Foundation, and Tezos Foundation are headquartered in Switzerland. The country's universities—particularly ETH Zurich and University of St. Gallen—produce blockchain-specialized graduates and conduct cutting-edge research in distributed systems, cryptography, and tokenomics. Tax competitiveness. Corporate tax rates vary by canton, ranging from 11.95% in Zug to 21.15% in Zurich (combined federal, cantonal, and municipal rates). For individual investors, capital gains from private cryptocurrency holdings are tax-free, making Switzerland attractive for both companies and their employees. > Switzerland's cryptocurrency market was USD 20,757 million in 2024, projected to USD 48,070 million by 2033 (CAGR 9.78%). — IMARC Group (2025) > "Zug continues to retain its leading position as a hub... Zurich and Liechtenstein have also seen increased venture funding." — Chambers and Partners, Blockchain 2025 Report The combination of these factors has created a self-reinforcing ecosystem where regulatory certainty attracts capital, which in turn attracts talent and infrastructure, further strengthening Switzerland's position as the global blockchain hub. ## Registering a blockchain company in Switzerland: step-by-step instructions Disclaimer: This information is general in nature and does not replace consultation with a specialist. Launching a blockchain company in Switzerland requires navigating a structured process involving legal entity formation, capital deposit, notarial certification, and commercial registry filing. The entire process typically takes 2-4 weeks for standard cases, though obtaining a FINMA license (if required) can extend timelines to 4-8 months. ### Step 1: choosing the legal form: AG vs. GmbH Swiss law offers two primary corporate structures for blockchain businesses: Aktiengesellschaft (AG, equivalent to a corporation) and Gesellschaft mit beschränkter Haftung (GmbH, equivalent to a limited liability company). The choice depends on your business model, funding strategy, and operational requirements. AG (Corporation) requires a minimum share capital of CHF 100,000, with at least CHF 50,000 paid in at formation. Shares can be freely transferred, making AG the preferred structure for companies planning to raise venture capital or issue tokens to a broad investor base. At least one board member with signatory authority must be a Swiss resident. GmbH (Limited Liability Company) requires a minimum share capital of CHF 20,000, fully paid in at formation. Ownership stakes (quotas) are not freely transferable—transfers require approval from other shareholders, making GmbH suitable for closely held companies or projects with a small founding team. GmbH has simpler governance requirements and lower formation costs, but may be perceived as less credible by institutional investors and banks. For blockchain startups planning to conduct an ICO, raise venture funding, or operate as a regulated financial intermediary, AG is typically the better choice. For consulting firms, development studios, or projects with a small team and no immediate fundraising plans, GmbH offers cost savings and administrative simplicity.

Comparison of AG and GmbH legal forms for crypto business in Switzerland
Parameter	AG	GmbH
Minimum share capital	CHF 100,000 (CHF 50,000 paid-in)	CHF 20,000 (fully paid-in)
Shareholder anonymity	Not mandatory disclosure	Yes, ownership disclosure required
Management complexity	Mandatory board of directors; formal AGM procedures	Shareholder-managed; flexible, fewer formal requirements
Share transfer flexibility	Freely transferable	Restricted; requires approval from other shareholders
Investor credibility	High; preferred for capital-raising and growth	Moderate; suitable for SMEs

### Step 2: registration process from A to Z The registration process follows a standardized sequence mandated by Swiss commercial law: 1. Preparation. Develop your business model and, if applicable, prepare a whitepaper outlining your token economics, technical architecture, and use case. Select a company name and verify its availability through the Zefix commercial register database. The name must be unique within your canton and cannot mislead about the nature of your business. 2. Founding documents. Draft the Articles of Association (Statuten/Statuts) with the assistance of a Swiss notary. The Articles must specify the company name, registered office, business purpose, share capital structure, and governance rules. For blockchain companies, the business purpose should be broadly defined to cover token issuance, trading, custody, and related activities. Prepare the founders' resolution documenting the initial capital contribution and board appointments. 3. Share capital deposit. Open an escrow account at a Swiss bank and deposit the required share capital (CHF 50,000 for AG or CHF 20,000 for GmbH). The bank will issue a capital confirmation certificate (Kapitaleinzahlungsbestätigung) required for registration. Note that opening a corporate bank account as a blockchain company can be challenging—see the banking section below for strategies. 4. Notarial certification. Attend a notarial appointment where the founders sign the Articles of Association and founding resolution. The notary verifies the identity of all founders, confirms compliance with legal requirements, and certifies the documents. If foreign founders cannot travel to Switzerland, they can grant power of attorney to a Swiss representative. 5. Commercial register filing. Submit the certified documents, capital confirmation, and board member signatures to the commercial register (Handelsregisteramt) of your chosen canton. The registry reviews the application for completeness and legal compliance, typically within 1-2 weeks. Upon approval, your company receives a unique identification number (UID) and is officially registered. For blockchain companies planning to operate as Virtual Asset Service Providers (VASPs)—including exchanges, custodians, or token issuers—additional steps are required after commercial registration. You must affiliate with a Self-Regulatory Organization (SRO) for AML compliance or apply directly to FINMA for a license, depending on your business model. This process requires submitting a detailed business plan, AML/KYC policies, proof of adequate capital, and documentation of beneficial owners. For more details on legal entity formation, consult our comprehensive guide.

Swiss Company Registration Roadmap

Preparation

Business model definition, name check via Zefix, and whitepaper drafting.

Documents

Drafting Articles of Association and Founders' Resolution with notary.

Capital

Deposit share capital (AG: 50k / GmbH: 20k) into a Swiss blocked account.

Certification

Notarial meeting to verify founders and sign all founding documents.

Registration

Filing to Commercial Register. Receipt of UID after approx. 1-2 weeks.

Total Duration: 2-4 weeks (Standard) • 4-8 months (With FINMA License)

{{cta:cta-1}} ### Step 3: formation costs and timelines Understanding the cost structure and timeline is essential for budgeting and planning your launch.

Approximate costs and timelines for registering a crypto company in Switzerland
Expense category	Approximate cost (CHF)	Timeline (days/weeks)
Government registration fee	420-1,200 (varies by canton and structure)	Included in 1-2 week registry review
Notary services	500-2,000 (depends on canton and complexity)	1-3 days for appointment scheduling
Legal advisory	800-2,000 (document preparation and compliance review)	1-2 weeks for document drafting
Total formation costs	1,720-5,200	2-4 weeks (standard case)

Additional costs may include: - Registered office rental: CHF 1,200-3,600 annually for a virtual office or domicile service - Resident director service: CHF 2,000-5,000 annually if you need a nominee Swiss resident director - SRO membership: CHF 1,500-3,000 annually for AML compliance affiliation - FINMA license application: CHF 10,000-50,000+ in legal and consulting fees (if applicable) The 2-4 week timeline applies to straightforward cases where all documents are prepared correctly and the bank account opens without delays. Blockchain companies should budget an additional 2-4 weeks for banking due diligence and 4-8 months if a FINMA license is required. ## How to open a bank account for a crypto business in Switzerland Disclaimer: This information is general in nature and does not replace consultation with a specialist. Opening a corporate bank account is one of the most significant challenges for blockchain companies in Switzerland. Traditional banks apply heightened due diligence to crypto-related businesses due to AML concerns, and many simply refuse to serve the sector. However, Switzerland's crypto-friendly banking infrastructure provides viable solutions. The banking challenge. Swiss banks are required to implement risk-based customer due diligence under the Anti-Money Laundering Act (AMLA). For blockchain companies, this means extensive documentation requirements: detailed business plans, proof of regulatory compliance, transparency on beneficial owners, and explanations of fund flows. Banks must verify that your company is registered in the commercial register, has a physical office in Switzerland, and has clear policies for preventing money laundering and terrorist financing. Traditional banks like UBS, Credit Suisse (now part of UBS), and cantonal banks generally avoid crypto businesses unless the company has a proven track record, substantial capital, and a low-risk business model (e.g., blockchain infrastructure providers rather than exchanges or token issuers). The Swiss Bankers Association has published guidelines on working with blockchain companies, but these are recommendations rather than binding standards, and individual banks maintain discretion. For more context on banking trends, see our analysis on Switzerland as the new Hong Kong for corporate businesses. Crypto-friendly banking solutions. Switzerland is home to specialized banks that have obtained FINMA licenses specifically to serve digital asset businesses. These institutions understand blockchain business models and have built compliance frameworks tailored to the sector.

Crypto-friendly banks and their key services for blockchain businesses in Switzerland
Bank name	Key services for crypto business	Official website
SEBA Bank	Custody of digital assets, crypto trading, tokenization services, corporate accounts with fiat and crypto integration	seba.swiss
Sygnum Bank	Regulated crypto banking, asset tokenization, staking services, institutional custody	sygnum.com
Dukascopy Bank	Cryptocurrency trading, custody (fiduciary deposits authorized by FINMA), Bitcoin deposits/withdrawals to accounts	dukascopy.bank

These banks typically require: - Completed commercial register entry - Detailed business plan and whitepaper (if applicable) - AML/KYC policies and compliance officer appointment - Proof of adequate capital and financial projections - Background checks on all beneficial owners and board members Account opening with crypto-friendly banks takes 4-8 weeks on average, compared to 2-3 weeks for traditional businesses. Expect to provide extensive documentation and participate in multiple compliance interviews. Alternative strategies. If you cannot immediately secure a Swiss bank account, consider these interim solutions: - Escrow services: Use a licensed escrow provider to hold your share capital during formation, then transfer to a corporate account once opened - Foreign accounts: Open a corporate account in a crypto-friendly jurisdiction (e.g., Liechtenstein, Estonia) while continuing to pursue Swiss banking - Payment service providers: Use regulated payment processors like Datatrans or SIX Payment for transaction processing while maintaining a basic account for capital requirements The Swiss Bankers Association's guidelines emphasize that banks should assess blockchain companies on a case-by-case basis rather than applying blanket restrictions. Demonstrating regulatory compliance, transparent ownership, and a clear business model significantly improves your chances of securing banking services. ## Regulation of blockchain and cryptocurrencies: compliance guide Disclaimer: This information is general in nature and does not replace consultation with a specialist. Switzerland's regulatory framework for blockchain and cryptocurrencies is built on the principle of technology neutrality: existing financial regulations apply to blockchain businesses based on their economic function, not the underlying technology. This approach provides clarity while ensuring consumer protection and market integrity. ### The role of FINMA and the "DLT Act" as the legal foundation FINMA's supervisory mandate. The Swiss Financial Market Supervisory Authority (FINMA) is the independent regulator responsible for supervising banks, insurance companies, securities dealers, and other financial intermediaries. FINMA's mission is to protect creditors, investors, and policyholders while ensuring the proper functioning of Swiss financial markets. For blockchain businesses, FINMA determines whether a company's activities require licensing under existing financial market laws. FINMA issues licenses for crypto exchanges (as banks or securities dealers), fintech companies accepting deposits up to CHF 100 million, and other regulated activities. FINMA also enforces AML/KYC requirements and can issue warnings, revoke licenses, or order asset seizures for non-compliance. FINMA has published several key guidance documents for the blockchain sector: - ICO Guidelines (February 2018): Establishes the framework for token classification and ICO regulation — FINMA, ICO Guidelines, 2018 (last updated September 2019). - Supplement to ICO Guidelines (September 2019): Updates on stable tokens and payment systems - Guidance on Stablecoins (July 2024): Clarifies AML/KYC requirements for stablecoin issuers The DLT Act. Adopted by the Swiss Parliament in February 2021 and effective since August 2021, the Federal Act on the Adaptation of Federal Law to Developments in Distributed Ledger Technology (DLT Act) introduced several critical innovations: 1. DLT securities: The law recognizes tokenized securities (rights recorded on a distributed ledger) as legally valid instruments equivalent to traditional securities. This enables companies to issue shares, bonds, or other financial instruments directly on a blockchain without requiring paper certificates or intermediary registries. 2. DLT trading systems: The law created a new licensing category for platforms that facilitate trading of DLT securities. These systems can operate with lighter regulatory requirements than traditional stock exchanges, provided they meet specific technical and organizational standards. 3. Segregation of crypto assets in bankruptcy: The DLT Act clarifies that crypto assets held in custody are segregated from the custodian's bankruptcy estate, protecting client assets in case of insolvency. 4. Legal certainty for smart contracts: The law confirms that smart contracts can have legal effect under Swiss law, provided they meet the requirements for valid contracts (offer, acceptance, consideration). The DLT Act positions Switzerland as one of the few jurisdictions with comprehensive blockchain-specific legislation, reducing legal uncertainty for companies and investors. ### Token classification under FINMA guidelines FINMA classifies tokens into three categories based on their economic function, not their technical implementation. This classification determines which regulatory requirements apply. Payment tokens are intended as a means of payment for goods and services or as a store of value. Examples include Bitcoin and Ether. FINMA treats payment tokens as equivalent to foreign currencies. Companies dealing in payment tokens must comply with AML regulations but do not need securities licenses unless they also provide other regulated services (e.g., custody, exchange). Utility tokens provide access to a specific application or service. For example, a token that grants access to a decentralized storage network or a gaming platform. Utility tokens are not classified as securities if they genuinely provide utility and are not marketed as investments. However, if utility tokens are traded speculatively before the underlying service is functional, or if they include investment-like features (e.g., profit-sharing), FINMA may reclassify them as asset tokens. Asset tokens represent ownership of physical assets, companies, earnings, or entitlements to dividends or interest. Examples include tokenized real estate, equity tokens, or debt instruments. FINMA treats asset tokens as securities under the Financial Market Infrastructure Act (FMIA). Issuers must comply with prospectus requirements if the tokens are standardized and suitable for mass trading, and intermediaries dealing in asset tokens need securities dealer licenses. Hybrid tokens. Many tokens combine characteristics of multiple categories. For example, a token might function as both a payment method within an ecosystem and provide access to services (payment + utility), or represent ownership while also granting governance rights (asset + utility). FINMA assesses hybrid tokens based on their predominant function and may apply multiple regulatory frameworks. Companies are responsible for self-classifying their tokens for regulatory reporting purposes. FINMA reviews these classifications during licensing procedures and can reclassify tokens if it determines the economic function differs from the company's assessment.

FINMA Token Classification & Requirements

Category 01

Payment Tokens

Intended as a means of payment or store of value (e.g., Bitcoin).

AML Compliance: Mandatory

Securities Law: Not Applicable

Category 02

Utility Tokens

Provide access to a digital application or service via blockchain infrastructure.

AML Compliance: Generally No

Securities Law: Only if investment purpose

Category 03

Asset Tokens

Represent assets such as debt, equity, or dividends (e.g., Tokenized Shares).

AML Compliance: Mandatory

Securities Law: Prospectus Required

{{cta:cta-1}} ### Anti-money laundering (AML/KYC) requirements All blockchain companies operating as financial intermediaries in Switzerland must comply with the Anti-Money Laundering Act (AMLA). This includes exchanges, custodians, token issuers, and payment service providers. Core obligations: - Customer identification: Verify the identity of all customers conducting transactions. The threshold of CHF 1,000 applies for linked transactions within 30 days (and not per day). In the context of exchange transactions of virtual currencies for cash or other anonymous means of payment, technical measures are mandatory to avoid the threshold being exceeded by such linked transactions. Verification requires government-issued ID, proof of address, and beneficial owner documentation for corporate clients. - Transaction monitoring: Implement systems to detect suspicious transactions, including unusual patterns, high-risk jurisdictions, or politically exposed persons (PEPs). - Record keeping: Maintain records of customer identification, transactions, and risk assessments for at least 10 years. - Suspicious activity reporting: Report suspicious transactions to the Money Laundering Reporting Office Switzerland (MROS) without notifying the customer. - Internal controls: Appoint a compliance officer, conduct regular risk assessments, and train employees on AML procedures. SRO affiliation or FINMA licensing. Financial intermediaries must either affiliate with a Self-Regulatory Organization (SRO) recognized by FINMA or obtain a direct FINMA license. SRO membership is typically faster and less expensive (2-4 months, CHF 1,500-3,000 annually) but requires ongoing compliance audits. Direct FINMA licensing is required for larger operations or companies conducting regulated activities beyond AML (e.g., banking, securities dealing). Stablecoin issuers. FINMA's July 2024 guidance clarifies that stablecoin issuers must apply AML/KYC procedures similar to banks, including verification of token holders and beneficial owners. This applies regardless of whether the stablecoin is classified as a payment token or asset token. In order to protect depositors and mitigate the risks, FINMA has developed minimum requirements for the applicability of bank default guarantees: in the event of the bankruptcy of the stablecoin issuer, each customer must have their own claim against the Swiss bank issuing the default guarantee. ### DeFi, staking, and other blockchain financial services 64% of respondents see high long-term potential in blockchain, up from 37% in 2024. — University of St. Gallen FSI (2025) Switzerland's regulatory framework extends to emerging blockchain financial services such as decentralized finance (DeFi) protocols, staking services, and yield farming. FINMA applies a substance-over-form approach, evaluating whether these activities constitute regulated financial services regardless of their decentralized nature. For staking services, FINMA distinguishes between custodial and non-custodial models. Custodial staking providers must comply with banking or fintech licensing requirements if they accept client assets. Non-custodial staking, where users retain control of their private keys, generally falls outside FINMA's direct supervision but may still trigger AML obligations if the service provider facilitates transactions. DeFi protocols that enable lending, borrowing, or trading may require securities dealer licenses if they operate as organized trading facilities or provide investment services. The key determinant is whether the protocol's operators exercise control over client assets or transaction execution. ### Conducting an ICO/STO in Switzerland: requirements and process Switzerland's approach to Initial Coin Offerings (ICOs) and Security Token Offerings (STOs) is governed by FINMA's ICO Guidelines, which apply a case-by-case assessment based on token classification. Payment token ICOs. If you are issuing a pure payment token (cryptocurrency with no investment features), you do not need a securities prospectus. However, you must comply with AML requirements: affiliate with an SRO or obtain a FINMA license, implement KYC procedures for all token purchasers, and report suspicious transactions. Utility token ICOs. Utility tokens are not classified as securities if they provide genuine access to a service and are not marketed as investments. However, if utility tokens are transferable or traded on secondary markets before the service is operational, FINMA may classify them as securities, requiring a prospectus and securities dealer license for intermediaries. To avoid securities classification, ensure your utility token has a clear use case, is not marketed with investment language, and is distributed only to users who intend to use the service. Asset token STOs. Asset tokens are always classified as securities under Swiss law. Issuers must prepare a prospectus complying with the Financial Services Act (FinSA) if the tokens are offered to the public and are standardized for mass trading. The prospectus must include detailed information on the issuer, the token's economic rights, risks, and financial statements. Intermediaries facilitating asset token sales need securities dealer licenses from FINMA. Practical steps for conducting an ICO/STO: 1. Token classification: Determine whether your token is payment, utility, or asset-based. Consult with Swiss legal counsel to ensure accurate classification. 2. Regulatory compliance: If classified as a security, prepare a prospectus and engage a licensed securities dealer. If classified as payment or utility, affiliate with an SRO for AML compliance. 3. Whitepaper preparation: Draft a comprehensive whitepaper explaining your project's technology, token economics, team, roadmap, and risks. While not legally required for all token types, a whitepaper is essential for investor transparency. 4. KYC implementation: Set up a KYC process to verify all token purchasers, including identity verification, source of funds checks, and PEP screening. 5. Token distribution: Use a smart contract or escrow mechanism to distribute tokens after the ICO closes. Ensure compliance with securities laws if tokens are immediately tradable. ## Taxation of cryptocurrencies and blockchain businesses Disclaimer: This information is general in nature and does not replace consultation with a specialist. Switzerland's tax system for cryptocurrencies is competitive and transparent, with no special crypto tax—digital assets are taxed under existing frameworks for income, wealth, and corporate profits. ### Taxes for legal entities Corporate income tax. Blockchain companies operating as AG or GmbH pay corporate income tax on their profits at both federal and cantonal levels. The federal rate is 8.5% of net profit (effective rate ~7.83% after accounting for the tax itself in the tax base). Cantonal and municipal rates vary significantly: - Canton Zug: 11.95% combined (federal + cantonal + municipal) - Canton Zurich: 21.15% combined - Canton Geneva: ~20% combined

Corporate Tax Impact: Canton Comparison

Combined federal + cantonal + municipal

Canton Zug 11.95%

Lowest rate in Switzerland. Ideal for holding structures and IP boxes.

Canton Zurich 21.15%

Higher tax burden, offset by access to deeper talent pool and banking infrastructure.

Note: Rates are approximate for 2026. Capital gains for private individual investors remain tax-free in both jurisdictions.

Profits from cryptocurrency trading, blockchain services, mining, and token sales are included in taxable income on the same basis as traditional business activities. Companies can deduct ordinary business expenses, including salaries, rent, software development costs, and marketing. Capital tax. Cantons levy an annual tax on a company's equity capital, typically 0.01-0.5% depending on the canton. There is no federal capital tax. Digital assets held on the balance sheet are valued at fair market value as of December 31 and included in the capital tax base. Tax optimization strategies. Companies can reduce their effective tax rate by: - Choosing a low-tax canton (Zug, Schwyz, Nidwalden) - Structuring as a holding company to benefit from participation exemptions on dividend income - Utilizing double taxation treaties (DTTs) to minimize withholding taxes on cross-border payments ### Taxes for individuals (investors and employees) Wealth tax. All cryptocurrency holdings must be declared in the annual tax return at their fair market value as of December 31. Wealth tax rates are set by cantons and municipalities, typically ranging from 0.1% to 1% of total net wealth. The Swiss Federal Tax Administration publishes annual cryptocurrency valuation rates for major coins (Bitcoin, Ether, etc.) to ensure consistent reporting. Capital gains tax exemption. This is one of Switzerland's most attractive features for crypto investors: capital gains realized by private individuals from the sale of cryptocurrencies are tax-free at both federal and cantonal levels. This exemption applies if the individual is classified as a private investor rather than a professional trader. FINMA and tax authorities use the following criteria to distinguish private investors from professional traders: - Holding period: Assets held for more than 6 months are presumed to be investments - Trading volume: Moderate trading activity (not daily or high-frequency trading) - Leverage: No use of borrowed funds to finance trades - Systematic approach: No systematic trading strategy or professional infrastructure If you are classified as a professional trader, capital gains are taxed as ordinary income at progressive rates (federal: 0-11.5%, cantonal: 0-34.5%, depending on canton and income level). Income tax on mining, staking, and airdrops. Cryptocurrency received from mining, staking, or airdrops is taxed as ordinary income at the time of receipt, based on the fair market value in CHF. This income is subject to federal and cantonal income tax at progressive rates. Subsequent capital gains on these coins remain tax-free if you are a private investor. ### VAT for crypto and token operations Switzerland's Value Added Tax (VAT) system applies to blockchain businesses based on the nature of the services provided, not the use of blockchain technology. VAT exemption for payment tokens. The Swiss Federal Tax Administration (FTA) does not charge VAT on the purchase or sale of payment tokens (cryptocurrencies like Bitcoin, Ether). This treatment aligns with the exemption for foreign currency exchange under Swiss VAT law. VAT on utility and asset tokens. The VAT treatment depends on the token's function: - Utility tokens: If the token provides access to a service, VAT applies to the service at the standard rate (8.1% as of 2024) or reduced rate (2.6% for certain goods) based on the CHF value of the transaction. - Asset tokens: If the token represents a financial instrument (e.g., equity, debt), the issuance and trading are generally VAT-exempt under financial services exemptions. VAT registration threshold. Companies with annual turnover exceeding CHF 100,000 must register for VAT with the FTA. As of January 1, 2025, electronic platforms with sales exceeding CHF 100,000 are treated as "presumed suppliers" and must collect and remit VAT on behalf of sellers. {{cta:cta-1}} ## The "Crypto Valley" ecosystem: key players and opportunities ### Crypto Valley in Zug: the heart of Switzerland's blockchain industry The term "Crypto Valley" was coined in 2013 when Johann Gevers relocated his blockchain company Monetas to Canton Zug. Gevers envisioned Zug as a global hub for blockchain innovation, leveraging the canton's low corporate tax rate (11.95%), business-friendly regulations, and proximity to Zurich's financial infrastructure. By 2023, the Crypto Valley ecosystem had grown to over 1,135 active blockchain companies, employing approximately 5,000 people. The combined valuation of the top 50 companies reached USD 584.33 billion at the end of 2024, a 56% increase from USD 373.45 billion in 2023, according to Chambers and Partners (2025).

Crypto Valley Snapshot 2026

Source: CV VC / Chambers & Partners

Combined Valuation

$584B

+56% growth YoY

Active Companies

1,100+

Concentrated in Zug & Zurich

Capital Raised (2020-24)

2.7B

Swiss Francs (CHF)

Why Zug? Several factors contributed to Zug's emergence as the blockchain capital: - Tax competitiveness: Zug offers one of Switzerland's lowest corporate tax rates and has historically attracted multinational headquarters - Regulatory support: The Canton Zug Office for Economic Affairs actively supported blockchain startups, providing guidance on registration and compliance - Early adopters: Zug became the first government in the world to accept Bitcoin for public services in 2016, signaling openness to innovation - Network effects: As major projects like Ethereum Foundation (2014) and Cardano Foundation established headquarters in Zug, the ecosystem attracted more startups, investors, and service providers Crypto Valley Association (CVA). Founded in January 2017 by Bitcoin Suisse, Bussmann Advisory, iProtus, Lucerne University, Luxoft, Monetas, and Thomson Reuters, the CVA is an independent organization that coordinates the ecosystem. The CVA's mission is to develop the optimal environment for cryptographic technologies and blockchain in Switzerland and internationally. CVA activities include: - Networking: A members-only portal connecting 41,000+ professionals, companies, and investors - Education: The annual Crypto Valley Conference (7th edition in 2025, organized with Lucerne University of Applied Sciences and Arts) attracts 1,200+ attendees - Advocacy: Working groups on regulation, cybersecurity, and taxation produce white papers and policy recommendations for Swiss authorities - Membership: Companies and individuals can join the CVA through a board-approved application process, with annual fees supporting ecosystem development ### Famous projects with Swiss roots Switzerland is home to some of the world's most influential blockchain projects: Ethereum Foundation (established February 2014 in Zug) — The nonprofit organization supporting the development of Ethereum, the world's second-largest blockchain by market capitalization. Ethereum pioneered smart contracts and decentralized applications (dApps), enabling the DeFi and NFT ecosystems. Cardano Foundation (Zug) — Oversees the development of Cardano, a proof-of-stake blockchain focused on scalability, interoperability, and sustainability. Cardano is known for its peer-reviewed research approach and academic partnerships. Tezos Foundation (Zug) — Supports the Tezos blockchain, which features on-chain governance and formal verification for smart contracts. Tezos raised $232 million in one of the largest ICOs in 2017. DFINITY (Zurich) — Develops the Internet Computer Protocol (ICP), a blockchain designed to host decentralized applications at web speed. Polkadot (Zug) — Created by Ethereum co-founder Gavin Wood, Polkadot is a multi-chain protocol enabling interoperability between different blockchains. The Web3 Foundation, which supports Polkadot, is based in Zug. Solana Foundation (Zug) — Supports the Solana blockchain, known for high-throughput transaction processing. Solana has become a major platform for DeFi and NFT applications. The presence of these projects creates a virtuous cycle: they attract developers, investors, and service providers, which in turn makes Switzerland more attractive for new blockchain ventures. ### Impact of European regulation (MiCA) on Swiss market 75% of decision-makers say Switzerland is acting too cautiously versus the EU's MiCA framework. — University of St. Gallen FSI (2025) The European Union's Markets in Crypto-Assets Regulation (MiCA), which entered into force in 2023, establishes a comprehensive regulatory framework for crypto-assets across the EEA. While Switzerland is not an EU member and MiCA does not apply directly to Swiss companies, the regulation has significant implications for the Swiss blockchain ecosystem. Swiss companies providing services to EU customers must comply with MiCA requirements, including authorization, disclosure, and conduct rules. This creates both challenges and opportunities: Swiss firms must invest in compliance infrastructure, but they can also leverage Switzerland's established regulatory framework as a competitive advantage when seeking MiCA authorization. FINMA has indicated that it will monitor MiCA's implementation and may adjust Swiss regulations to maintain regulatory equivalence and facilitate market access for Swiss firms. The Swiss Federal Council's October 2025 consultation on amendments to the Financial Institutions Act reflects this proactive approach, proposing new licensing categories for stablecoin issuers and crypto-asset service providers. ## Jurisdiction comparison: Switzerland vs. Liechtenstein, Singapore, Dubai Choosing the right jurisdiction is a strategic decision that affects your regulatory obligations, tax burden, access to banking, and ecosystem support. Here's how Switzerland compares to three other popular blockchain jurisdictions.

Comparative analysis of jurisdictions for crypto business: Switzerland, Liechtenstein, Singapore, Dubai
Criterion	Switzerland	Liechtenstein	Singapore	Dubai (UAE)
Regulatory clarity	High; DLT Act and FINMA guidelines provide comprehensive framework for token classification, ICOs, and licensing	Flexible legal framework with Token and TT Service Provider Act (TVTG); supports holding structures and tokenization	Efficient and incorruptible judicial system; Payment Services Act regulates crypto businesses	Free zones with simplified registration procedures; VARA (Virtual Assets Regulatory Authority) oversees crypto in Dubai
Corporate tax rate	11.95%-21.15% (varies by canton; Zug lowest at 11.95%)	12.5% fixed rate	17% corporate tax (effective rate can be lower with incentives)	0% in free zones; 9% federal corporate tax outside free zones (introduced 2023)
Banking access	Strict client verification; crypto-friendly banks (SEBA, Sygnum, Dukascopy) available but require extensive due diligence	Strong banking sector focused on financial services; banks more accessible for blockchain companies than in Switzerland	Access to international banks and payment systems; crypto-friendly banks like DBS and XFERS	Access to international banks in free zones; growing number of crypto-friendly institutions
Ecosystem development	Mature ecosystem with 1,135+ companies, CHF 2.7B VC funding (2020-2024), Crypto Valley Association network	Smaller ecosystem but growing; benefits from proximity to Switzerland and EU market access	Developed fintech infrastructure; government support for blockchain innovation	Free economic zones for logistics, IT, fintech; rapid growth in crypto startups since 2020
International reputation	Leading position in rule of law, asset protection, and political stability (World Bank rank #2)	Stability and confidentiality reputation; EEA member provides EU market access	Strict property rights enforcement; ranked highly for ease of doing business	Growing popularity for business operations; regulatory framework still maturing

When to choose Switzerland: - You need regulatory certainty and a proven legal framework for token issuance - You plan to raise venture capital from European or US investors who value Swiss credibility - You require access to traditional banking alongside crypto-native services - You want to be part of a mature ecosystem with established service providers and talent pool When to consider alternatives: - Liechtenstein: If you need a holding structure with lower capital requirements and want EU market access - Singapore: If your primary market is Asia and you prefer a lower corporate tax rate - Dubai: If you want zero corporate tax in a free zone and are targeting Middle Eastern markets Switzerland's combination of regulatory clarity, ecosystem maturity, and international reputation makes it the optimal choice for blockchain companies prioritizing long-term stability and credibility over short-term tax savings. ## Ready to launch your crypto project in Switzerland? {{cta:cta-1}} Switzerland offers a unique combination of innovation, stability, and legal certainty for blockchain businesses. Our team of experts is ready to assist you at every stage: from selecting the optimal canton and legal structure to company registration, opening a bank account, and obtaining a FINMA license if required. We provide: - Legal entity formation: AG or GmbH registration with full documentation and notarial services - Regulatory compliance: SRO affiliation, FINMA license applications, AML/KYC policy development - Banking solutions: Introductions to crypto-friendly banks and assistance with account opening - Tax optimization: Canton selection and corporate structure planning to minimize tax burden - Ongoing support: Accounting, annual reporting, and compliance monitoring Get a free consultation to take your first step into the Crypto Valley.

Blockchain and crypto business in Switzerland: complete guide to launching in 2026