Offshore Cryptocurrency License in Switzerland

The ground of Switzerland holds a firm grip when it comes to finance and banking. The nation holds a robust financial sector that contributes a lot to the growth of the economy and stands one of the most popular countries when it comes to offshore business incorporation. Over the years, the offshore business establishment has increased to a great extent. Switzerland opens a soft ground for business investors at a global level to come forward and invest in cryptocurrency. Holding enormous potential on blockchain technology, the nation aspires to provide a suitable business environment to the potential investors.

This guide outlines the details regarding the cryptocurrency that one needs to know before investing. If you are planning to proceed ahead with an offshore company in Switzerland, this guide will help you to understand the essentials.

What is Cryptocurrency?

Cryptocurrency, a digital asset designed as a medium of exchange or can be called a virtual currency that gets secured using cryptography. In general, most of the cryptocurrencies are decentralized on the medium of blockchain technology. The records of ownership are stored in a digital ledger or a computerized database. The core aim of a cryptocurrency is to:

  • Control the creation of additional digital coin records
  • Secure the transaction records
  • Verify the transfer of coin ownership

Cryptocurrency License in Switzerland

Now, it is to be noted that a cryptocurrency license in Switzerland needs to be obtained from the FINMA (Swiss Financial Market Supervisory Authority). This governing body is responsible for financial regulation. The authority is responsible for supervising the banks, financial institutions, stock exchanges, and other financial intermediaries. Now, when it comes to Switzerland Cryptocurrency licenses, the ground holds the possibilities for the four different types of licenses, namely:

  • Fintech License
  • Exchange License
  • Investment Fund License
  • Banking License

Some of the features of a cryptocurrency license in Switzerland are highlighted below:

  • The minimum paid-up capital required is 100,000 CHF
  • There must be at least one director and one shareholder
  • The federal effective tax rate is 7.83%
  • The physical presence of an office is required in Switzerland

It is to be noted that the cryptocurrency license in Switzerland is operated by the Anti-Money Laundering Act (AMLA), which can also be defined as the Crypto-Law in Switzerland. The law regulates the relevant business activities to the following business entities:

  • Banks
  • Investment Companies
  • Insurance Institutions
  • Securities Dealers
  • Fund managers
  • Casinos

To know more, here’s a guide on the six reasons marketers care about cryptocurrency.

Conditions to be Met Before Issuing a Cryptocurrency License in Switzerland

As per the governing body, specific laws are to be met by the financial intermediary that plans to hold a cryptocurrency license. The following conditions are to be met accordingly:

  • It must be registered in the commercial register as a commercial undertaking
  • Must be officially authorized to conduct the business activities
  • The organization along with the shareholder(s) and director(s) must hold a good reputation
  • Assurance of compliance are to be provided with its duties under AMLA
  • All the business licensing requirements are to be met
  • The cryptocurrency application needs to be signed by the applicant

Benefits of Obtaining a Cryptocurrency License in Switzerland

Some of the advantages that business investors can grab by obtaining a cryptocurrency license in Switzerland are highlighted below:

  • Complete exemptions from dividend tax possibilities
  • Low tax in cantons and corporate tax
  • The friendly business environment for cryptocurrency and blockchain
  • Reliable and most stable economies in the world
  • Holds “Tax Reform and AHV Financing” that helps to decrease the tax drastically

How to Obtain a Cryptocurrency License in Switzerland?

Now, to obtain a cryptocurrency license in Switzerland, one needs to submit the essential set of documents to the governed authorities.  The complete process of obtaining a cryptocurrency license in Switzerland are highlighted below:

  1. Select a business consultant: Business experts like Business Setup Worldwide can help you to deal with the process in a much effective and smooth way.
  2. Submission of the essential documents: It is to be noted that documentation plays a significant role when it comes to obtaining a cryptocurrency license. You can get a detailed list of the documents to be submitted to the authorities in the next section of the article.
  3. Once the documents are submitted, the next step is to proceed ahead with opening an offshore bank account

Documents Required to Obtain a Cryptocurrency License in Switzerland

A notarized copy of the below-mentioned documents are to be submitted accordingly:

  • Passport copy of the company director(s) and shareholder(s)
  • Proof of identity and address proof of the director(s) and shareholder(s)
  • Bank statement of the shareholder(s) and director(s)
  • Bank reference letter of each director
  • Proof of source of income
  • Detailed business plan
  • Legal references for each shareholder/ director
  • Non-criminal records of the shareholder(s) and director(s)
  • Apostilled company documents if the director(s) or shareholder(s) are legal persons
  • Company manuals that include the following:
    • Corporate governance
    • AML/ Compliance
    • Security
    • IT manual
    • Remuneration Policy

Why Avail Professional Services?

Availing professional services is one of the smart moves that you can make at the right time. By proceeding ahead, you can grab the following benefits:

  1. Less Burden

Once you handover the legal proceedings to a certified legal expert, they can help you to grab the required license in a much easier and faster way. This helps you to utilize your time and resources in a better way. Additionally, your burden gets decreased to a great extent.

  1. Acts as An Advisor

Professional experts are well-versed with the market situations and can help you to guide your business accordingly. With the help of their knowledge, you can proceed ahead to take the necessary steps to grow your business.

  1. Well-versed with Legal Proceedings

Now, the moment you decide to start a business in a foreign land, you need to comply with the legal proceedings. By proceeding with experts, you can experience a quick move in the legal processes as they are well-versed with the respective processes.

  1. Worth for the Money Paid

Business professionals see the worth of paying a business expert in solving their legal proceedings. It turns out worth paying a consultant because they help and sorts the complete business incorporation proceedings. This might turn out to be a difficult move when headed alone or might end up costing even more.

By now, you have got an idea of how an expert can help you to complete the business proceedings. Read our latest guide on the core reasons for how an offshore business consultant can help you to start a business.

How Can We Help?

Business Setup Worldwide has been performing as one of the top ten business consultants in the UAE. Since it’s inception, we have been helping numerous business investors to start their business in different global locations. With a team of experts, we take the initiative of understanding your business and provide tailored solutions accordingly. In case you hold any queries, feel free to have a word with our experts. Contact us today-we’d glad to assist.

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