Switzerland, and particularly the canton of Zug – known worldwide as “Crypto Valley” – has become one of the leading global centers for blockchain and cryptocurrency projects. This reputation is not accidental but the result of a deliberate regulatory approach that combines legal clarity with openness to innovation.
Why Switzerland for an ICO?
- Clear regulatory framework – FINMA (the Swiss Financial Market Supervisory Authority) published guidelines on ICOs in February 2018, providing clear classification of tokens into payment tokens, utility tokens, and asset tokens. Each category has different regulatory requirements.
- No specific ICO legislation – rather than creating a new law, Switzerland applies existing financial market laws (Banking Act, Securities Act, Anti-Money Laundering Act) to token offerings based on their economic function. This pragmatic approach provides flexibility.
- Foundation structure – many ICO projects use the Swiss foundation (Stiftung) structure, which provides governance flexibility and tax advantages.
- Crypto-friendly banking – several Swiss banks, including Sygnum and SEBA, hold FINMA licenses and provide banking services specifically for blockchain companies.
- International reputation – Switzerland’s reputation for stability, rule of law, and financial sophistication provides credibility to blockchain projects.
Practical considerations
- AML/KYC compliance is mandatory for all token offerings.
- Projects must carefully analyze whether their tokens qualify as securities under Swiss law.
- The establishment and ongoing costs of a Swiss structure are significant but reflect the quality and reliability of the jurisdiction.
Paweł Osiński
Attorney, expert in cryptocurrency regulations and international corporate structures