Cryptocurrency Exchange License in Switzerland

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Switzerland has made important changes to several of its laws, which could provide a strong foundation for the future crypto-currency trading platform based on Blockchain technologies. The “Crypto Valley”, an independent, state-supported union created to create the leading Swiss crypto-ecosystem and blockchain. You can expand your commercial horizons by obtaining a cryptocurrency exchange licence in Switzerland. This will allow you to connect your business with a trustworthy and promising space.

Switzerland is the cryptocurrency-friendly state. It is a state that supports crypto-currencies and has adopted a progressive stance toward crypto-currency regulations. While Switzerland isn’t the most affordable country to start a business, there are many advantages that make it attractive for cross-border entrepreneurs.

Entrepreneurs interested in starting a cryptostartup can benefit from the jurisdiction

Leader pays attention to reforming the legislative base, taking into account the situation of blockchain and crypto business development. In 2014, digital currencies were granted legal status. As a virtual currency, crypto-currencies can be purchased and sold via the Internet. This was the basis for the development of approval structures in crypto exchange.

A Swiss company registered in crypto-currencies may offer many benefits to its owners, including:

  • Stable economy and stable political environment
  • Favorable business environment
  • The Swiss government actively supports crypto-currency and has published ICO guidelines as well as FINMA documents.
  • Local Crypto Valley offers a variety of blockchain platforms, which are highly popular and extremely modern. This creates a favorable environment that is conducive to companies.
  • Low taxes in many cantons, including Zug which is the center of crypto-currency.
  • Possible tax exemption for dividends
  • This industry requires highly qualified staff.

Regulation of crypto-assets in Switzerland

Although the state has not yet established a law to regulate cryptocurrencies and tokens, it is working on it. The country is implementing the existing legislative framework for the financial sphere with respect to different crypto projects. The following categories are used to classify tokens:

  • Assets are an analog to security tokens. These assets guarantee income shares for the issuing company. There are also tokens that allow physical assets to be traded on the blockchain. When classifying tokens, particular legal positions that have relation to the token must be taken into consideration.
  • Utility tokens are product tokens that grant rights to purchase products based on the structuring of token issuers. Because there is no interaction with the capital market
  • Payment tokens – fiat (Bitcoin and Ethereum, etc. ).

Information and requirements for applying for a Swiss Cryptocurrency License

The company’s structure

  • Minimum one shareholder (individual, legal entity)
  • One director is required (foreign residents allowed).

Taxation

  • UK companies generally have to pay income tax at 19%.
  • For mutual funds and public investments structures, a 20% special rate is available.
  • The VAT standard rate is 20%, the reduced rate 5 percent, and the rate of 0 percent.

Accounting Requirements

  • Annual reports and reporting are mandatory.
  • Accounting records should be maintained in English
  • VAT refunds are available once per 3 months.

Secretary – Not Required

Legal address – Not required

Required: Registered address

Register Agent – Not Required

It is now possible for crypto-currency and ICO exchanges to pool capital. The functional responsibilities of FINMA regulators have increased. He now oversees the activities of non-fiat fund organizations. It is the FINMA regulator who takes preventive steps against fraud and possible risks.