Switzerland’s Regulatory Framework for Stablecoins
In a bid to regulate stablecoins, Switzerland has initiated a public consultation, inviting feedback on a proposed framework that would oversee issuers under the guidelines of the Swiss Financial Market Supervisory Authority (FINMA). The proposal, made public on October 22, aims to develop a structured legal environment for stablecoin payment solutions. While Switzerland is relatively late in this regulatory race compared to financial powerhouses like Singapore and Dubai, experts believe this cautious approach allows the nation to learn from the experiences of others and sidestep potential pitfalls.
Key Aspects of the Proposed Regulation
The proposed regulation includes the establishment of a new licensing category for institutions involved in issuing blockchain-based tokens that maintain value stability. Issuers will be obligated to:
- Fully back these tokens with high-quality liquid assets
- Maintain segregated reserves
- Provide key details about their operations in a publicly accessible whitepaper that must receive FINMA approval
Furthermore, foreign stablecoins traded within Switzerland will be classified as crypto assets instead of recognized payment currencies, easing regulatory burdens on offshore issuers who do not sell tokens directly in the Swiss market. Notably, the proposal stipulates that any issuer must inform FINMA at least 60 days before launching a new stablecoin and grants token holders the right to redeem their tokens for face value within a brief timeframe.
Expert Opinions on the Framework
Dea Markova, a policy director at Fireblocks, remarked that Switzerland’s deliberate pace in crafting this framework allows it to glean insights from regulatory developments in the EU and the US, emphasizing that stablecoins could significantly enhance the nation’s tokenized asset and bond markets.
Hany Rashwan, founder of 21Shares, suggested that stablecoins could fortify the strength and sovereignty of the Swiss franc.
Consultation Process and Historical Context
The consultation process will remain open until February 2026, after which the Swiss government plans to finalize the legislation and implement the new regulatory framework. Historically, stablecoins have been integral to Switzerland’s crypto landscape, facilitating retail transactions, e-commerce, and municipal tax payments, albeit under existing financial laws like the Banking Act and the Anti-Money Laundering Act without a specialized licensing system for payment instruments.
Future of Stablecoins in Switzerland
FINMA had previously released guidance in 2022 aimed at stablecoin issuers, addressing relevant risks and challenges. Several licensed banks in Switzerland, including Sygnum and SEBA, have begun incorporating stablecoins into their services, responding to the increasing demand. As the stablecoin sector is set to experience rapid growth, multiple global jurisdictions are racing to establish regulations, propelled by the US’s GENIUS Act, enacted in July 2025, which defines clear rules for fiat-backed stablecoins. Subsequently, various economies, including the EU and Japan, as well as tech-savvy regions like Singapore and Hong Kong, have undertaken initiatives to create standards for stablecoin issuance and management.
