The Swiss Financial Market Supervisory Authority (FINMA) has opened bankruptcy proceedings against the FinTech start-up SWISS4.0 SA, citing justified concerns that the institution is overindebted and has serious liquidity problems. Valfor Avocats Sàrl has been appointed as the bankruptcy liquidator. After closely monitoring the institution, FINMA had required early steps to improve its financial situation, but SWISS4.0 SA and its corporate bodies did not implement adequate measures within a reasonable period. The firm is described as a micro-start-up with around 250 customers. FINMA highlighted that, in the event of a FinTech institution’s bankruptcy, client assets are neither privileged nor covered by deposit protection and that FinTech-licensed institutions must explicitly inform clients of this. It also reiterated that the FinTech licence allows acceptance of public deposits up to CHF 100 million or cryptoassets, provided these are not invested and no interest is paid. As part of a regulatory project to amend financial market legislation for innovative business models of financial institutions, FINMA indicated it is working to ensure client assets will enjoy adequate protection in future if a FinTech institution fails.
Swiss Financial Market Supervisory Authority (FINMA) 2025-03-04
Swiss Financial Market Supervisory Authority opens bankruptcy proceedings against SWISS4.0 SA and appoints Valfor Avocats as liquidator
FINMA has initiated bankruptcy proceedings against FinTech start-up SWISS4.0 SA due to overindebtedness and liquidity issues, appointing Valfor Avocats Sàrl as liquidator. Despite prior interventions, SWISS4.0 SA failed to improve its financial situation. FINMA emphasized that client assets in FinTech bankruptcies are not protected by deposit insurance and is working on legislative amendments to enhance client asset protection.