The Federal Department of Finance (Switzerland) published the Federal Council’s consultation on amending the Financial Institutions Act to update Switzerland’s regulatory framework for innovative, technology-driven financial business models, including stablecoins and crypto-asset services. The package is intended to support market development and the competitiveness of the Swiss financial centre while addressing risks to financial stability, integrity, and investor and consumer protection, and to implement international standards. The draft introduces two new licence categories. A “payment instrument institution” licence would replace the existing fintech licence, require segregation of client funds in the event of institutional failure, remove the current CHF 100 million cap on accepting client deposits, and allow issuance of a special type of stablecoin subject to specific obligations, with anti-money laundering due diligence requirements for stablecoin issuance set out in greater detail. A “crypto-institution” licence would cover firms providing services with cryptocurrencies, with licensing and operating requirements modelled on those for securities firms but less extensive because crypto-institutions do not provide services with financial instruments; crypto-institutions and other crypto service providers would also face conflict-of-interest prevention requirements. The consultation runs until 6 February 2026.

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