Breaking News, Explained: What FINMA’s New Rules Mean for Compliance

Switzerland is preparing one of its largest regulatory changes for the country’s crypto and fintech sectors in years. On October 22, 2025, the Swiss Federal Council launched a public consultation on amendments to the Financial Institutions Act (FinIA), proposing two new FINMA-supervised licence categories: payment instrument institutions and crypto-institutions. 

The consultation runs until February 6, 2026, and the revised framework is expected to take effect in late 2026 or early 2027, with a transition period for firms to adjust.

Switzerland’s “self-regulatory organisation” (SRO) model—traditionally used for licensing by most crypto and fintech companies—will no longer be the default supervisory route for crypto and fintech firms operating in the country. Instead, many will move to direct licensing from FINMA, the Swiss government body responsible for financial regulation.

What are Switzerland’s new FINMA license categories?

Payment instrument institutions

The first proposed category, payment instrument institutions, will effectively replace the former fintech licence under SRO oversight. Unlike the previous system, where firms were capped at holding CHF 100 million ($126.2 million) in deposits, the new model removes this limit entirely. 

Firms authorized under this category will also be permitted to issue stablecoins in accordance with Switzerland’s strict anti-money laundering, governance, and segregation rules. Client funds must be protected in a way that ensures they are bankruptcy-remote, meaning that even if the firm collapses, client assets cannot be touched by creditors. The adjustments aim to enhance consumer protections and increase the attractiveness of Switzerland as an investment destination.

Crypto-institutions

The second new category, crypto-institutions, is designed for companies providing custody and trading of crypto-based assets with trading characteristics. It is lighter than a Swiss securities firm licence, but requires direct FINMA supervision. Firms will face enhanced obligations to prevent conflicts of interest and promote stability. This gives Switzerland a licence that reflects how modern virtual asset service providers operate, ensuring they meet obligations for security and financial integrity.

Together, these two proposed licences update Switzerland’s regulatory landscape for crypto and fintech firms. Virtual asset trading platforms that once operated under an SRO license will soon need to apply for a “crypto-institution” licence, while firms issuing stablecoins may need to be licensed as payment instrument institutions. SROs will continue to exist, but will not apply to companies that handle client assets, issue stablecoins, or offer trading services.

Why Switzerland’s new FINMA license categories matter, and keep the country a top crypto hub

Switzerland has long been viewed as one of the world’s most crypto-friendly jurisdictions, and the new crypto and fintech licensing systems could help boost this reputation. The earlier licensing system had a limiting deposit cap, while businesses found themselves navigating obligations that weren’t designed with crypto in mind.

By modernizing the licensing regime and recognizing stablecoin issuance within regulated perimeters, Switzerland is positioning itself to remain competitive against other emerging global standards. This includes the GENIUS Act, which regulates stablecoins in the US, and competition from hubs rapidly adopting stablecoins, like Hong Kong and Dubai.

Understandably, Switzerland aims to maintain its reputation for financial stability in the context of stablecoins. Under the new rules, payment instrument institutions will be able to issue “Stable Payment Crypto-Assets.” These must be pegged to a single fiat currency, fully backed, redeemable at par, issued in Switzerland, and supported by robust governance and segregation measures. Switzerland is creating one of the world’s most structured and conservative regulatory environments for issuing stablecoins and strengthening its consumer protections and attractiveness.

What crypto and fintech firms should do next in Switzerland

The first step is to evaluate which licence type aligns with your company’s current and future business model. Firms operating under an SRO should assume they will need to transition to the new categories. SROs will remain only for small, non-custodial intermediaries and consulting firms. Custody and trading of crypto-based assets with trading characteristics will fall under the crypto-institution licence. Stablecoin issuance and payment-instrument businesses will fall under the payment instrument institution licence. 

Once the appropriate licence pathway is clear, organizations should begin a comprehensive analysis. Governance frameworks, AML programs, conflict-of-interest procedures, segregation models, insolvency-protection mechanisms, and operational-risk controls may all need to be updated. Concerned stakeholders can participate in the consultation until February 6, 2026.

How Sumsub can help

Sumsub can help firms build compliant onboarding and monitoring programs that meet FINMA’s expectations, from identity verification and enhanced due diligence to ongoing screening and behavioral monitoring. Our platform also integrates blockchain analytics and wallet-risk assessment, which can support the obligations associated with the new rules.

As our tools are built to comply with multiple crypto regulations and scenarios, companies operating across Switzerland, the EU, and other markets can maintain compliance in different markets while aligning with MiCA and other emerging standards.

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