How crypto-sales are regulated in Switzerland

How crypto-sales are regulated in Switzerland

Opening a cryptocompany in Switzerland is relevant because the state is respectable. It is possible to profitably optimize taxation legally and open an account in a financial institution. For more information about crypto sales in Switzerland, contact our experts at IT-OFFSHORE.

Regulatory specifics

Based on how the ICO was designed, the laws of the financial market are used. It distinguishes between several types of tokens - payment, service, and asset tokens.

Payment tokens include those that are used as a means of payment or a means to transfer value. Utility tokens are needed to access a service. Asset tokens are considered analogous to stocks.

Cryptocurrency tokens are considered intangible assets according to the laws of the country. There are differences between tokens that represent value outside the blockchain. Because they have the status of assets, they may be confiscated in case of bankruptcy of the owner.

Nuances of opening a company

Doing cryptocurrency business in Switzerland is relevant because the country has a positive reputation and is friendly to electronic currency. The state is stable financially, and economically, and politically.

What should be considered when opening a company:

  • It is most beneficial to reduce taxation by opening a firm in the cantons of Zug or Lucerne;
  • Crypto holdings must pay property taxes;
  • Traders need to pay capital gains taxes;
  • Crypto-assets received as payment for labor are subject to income tax;
  • Mining is subject to taxation.

ICO tokens are given the status of securities. To receive or transfer bitcoins, it is not necessary to obtain a cryptocurrency license in Switzerland.

AML regulations must be complied with in order to operate legally. Many banks in the country offer convenient tools to handle cryptocurrencies.

It takes about 3 months to obtain a license in the country to conduct cryptocurrency activities. It is necessary to provide the founding documentation, prove the legitimacy of the origin of funds, and make a strategy for business development for the next few years. It is required to have a charter capital of 100,000 euros, ensure the safety of customer assets, and have AML/CFT reporting.

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