Many people in business seek to obtain a crypto permit in Europe. This is because this area is one of the most reliable and stable in the world despite the rather strict regulation of financial activities. Next, we will consider whether getting a crypto license in Switzerland is worth overcoming many obstacles.
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Regulation of this industry
FINMA supervises the local crypto business. It creates many rules for crypto projects to ensure compliance with laws. FINMA issues permits and regulates companies’ compliance with legislation aimed at combating MLA.
You must obtain a permit to operate in this country related to virtual assets legally. The FTA considers digital coins to be financial assets that can be used in commercial transactions. The state government actively supports the crypto business. FINMA always takes drastic measures against suspicious crypto companies.
Basic rules for digital coins
This country is loyal to digital coins and blockchain. The state does not have special legislation on digital currency, but the existing legislative framework is applied to control this financial sector. The main legal document for transactions with such assets is the DLT Law, which regulates the following:
- issuing permits for crypto activities;
- carrying out trade;
- combating illegal transactions.
This law also creates an infrastructure to support trading operations and an algorithm for firms’ actions in the event of bankruptcy. The National Bank acts as a guarantor of the reliability of the infrastructure; it controls the subjects of such market:
- DLT trading platforms;
- central securities depositories;
- payment systems.
The Central bank has the right to request financial firms to provide the required data and papers to detect possible risks that may threaten the stability of the state’s financial sector.
Organizations are strictly regulated based on anti-money laundering legislation. Their activities are registered, followed by careful verification and systematic reporting.
Organizations that issue tokens must comply with specific regulations depending on the properties and functions of these tokens, which the Regulator divides into three types: payment, utility, and assets. Each token type has its own legal rules in securities, civil rights, and taxation laws. The Regulator does not consider payment tokens legal tender since they are not considered guards but are used exclusively for expenses.
Benefits of this crypto permit
Despite rigorous and precise control by the Regulator, the Swiss Bank, and government authorities, licensing here has many benefits.
Transparency and stability
Control of the business here has long been established and is very stable. Therefore, no digital currency legal framework adjustments are planned in the next few years. Everything functions according to precise requirements, ensuring the complete confidence of entrepreneurs.
Multi-stage tax system
The country has a three-tier income tax system:
- federal (same rate throughout the country) – 8.5%;
- cantonal (same rate for a specific canton) 11.9-21%;
Taxes are small and contribute to business development.
Crypto firms have enormous prospects for financial growth because several institutions and banks have a positive attitude toward digital coins. Opening a bank account for transactions and creating a storage facility is possible.
Having a permit, the company will become a beautiful partner for cooperation. Consequently, the business will actively develop, and a prestigious image will contribute to a high rating in the crypto market.
Despite the strict control of the relevant authorities, this country is a desirable jurisdiction for starting a crypto business. In addition, taxation is low and relatively transparent, contributing to greater profits.
If you are still determining whether this jurisdiction is right for you, you can contact Gofaizen-Sherle for help. Specialists will study your activities and tell you how well it meets the requirements of regulators. They will provide complete information about the crypto industry regulation in this country and answer possible questions. If, as a result of the consultation, you understand that this country is unsuitable for you, they will help you choose another jurisdiction.