The financial regulator of Switzerland, FINMA, has adopted a stricter approach to the cryptocurrency sector, aiming for investor protection and ensuring clarity of regulations in its 2025 annual report. The change is the transition to the non-technical supervision based on the broader policy and risk-centered supervision.
The 2025 edition, unlike its 2024 report, which focused more on operational aspects such as staking and custody, condenses all crypto coverage in a shorter section but with a sharper regulatory intent. According to FINMA, “As practice shows, consumers take on significant risks when buying, trading and transferring cryptocurrencies.”
This shows regulators’ changing focus; they put consumer protection as a priority over innovation without protection. Notably, crypto is not listed among the nine most important systemic risks in the FINMA Risk Monitor 2025, which means that it is perceived by the authorities as more of an issue of investor protection than a threat to financial stability.
Statistics also indicate decreasing engagement from the sector. Inquiry volumes in FinTech and crypto declined from 104 in 2023 to 92 in 2024 and further to 75 in 2025. This implies a maturing yet more cautious regulatory environment.
Although it has been stricter in its tone, FINMA still encourages innovation in financial infrastructure. It licensed the first Distributed Ledger Technology (DLT) trading facility license in Switzerland to BX Digital AG, a subsidiary of the Boerse Stuttgart Group.
It is one of the first cases globally where trading and settlement of tokenized securities occur over a public blockchain, based on smart contracts on Ethereum. The system links to the Swiss Interbank Clearing (SIC) network of the Swiss National Bank, which adds institutional-grade reliability.
There is a notable regulatory reform being done by suggested changes in the Financial Institutions Act (FINIG). The Federal Council states that the reform will present two new types of licenses:
Introduction of payment institutions, which would allow issuance of “value-stable crypto-based means of payment” (stablecoins), and the removal of the CHF 100 million limit
Cryptocurrency institutions, including custody, trading, staking, and exchange services subject to direct supervision by FINMA
This represents a shift towards complete regulatory control as opposed to the existing self-regulatory organization (SRO) model. The proposal will likely make it to parliament by 2026 or 2027, and it is likely to be implemented by 2027.
Also Read: The Legal Battle Over Crypto Regulation in the U.S.
The operational rules have also been tightened by FINMA. According to its 2026 custody guidance, it is only allowed to outsource to foreign custodians where there exist similar regulatory and insolvency protections.
In the case of stablecoins, the regulator asserts that the redemption claims are deposits under the banking law and therefore must be heavily safeguarded. Anonymous stablecoins remain banned and identity checking under anti-money laundering rules has been mandatory since 2021.