← Regulations / Switzerland / Operating Models / Custodial SaaS

Custodial wallet / SaaS in Switzerland

Hosted wallet provider that holds keys on behalf of end users, often white-labeled to businesses (custody as a service).

Conditional AI-Generated · Unreviewed

Custodial SaaS is conditionally permitted in Switzerland with a local entity, subject to AML obligations and high licensing burden.

Verdict Details

Permitted
conditional
Local entity required
Yes
Licensing burden
High
Last updated
2026-07-13

AML Obligations

  • KYC mandatory for transactions exceeding CHF 1,000 per month; prove ownership of non-custodial wallets (ch.aml.threshold-kyc-mandatory-for-transactions)
  • Enhanced Due Diligence (EDD) required for high-risk clients (e.g., PEPs), unusual transactions, or third-party involvement (ch.aml.enhanced-due-diligence-edd-required)
  • Collect personally identifiable information (PII) to prevent fraud, identity theft, and money laundering (ch.aml.collect-personally-identifiable-information-pii)
  • Internal controls, staff training, and transaction monitoring (e.g., blockchain analytics for amounts over CHF 1,000) required (ch.aml.internal-controls-staff-training-and)
  • Retain client identification data, beneficial owner details, and transaction records for at least 10 years (ch.aml.retain-client-identification-data-beneficial)
  • Conduct regular, risk-based reviews to keep data current (ch.aml.conduct-regular-risk-based-reviews-to)
  • Suspicious activity reporting to Money Laundering Reporting Office Switzerland (MROS) (ch.aml.money-laundering-reporting-office-switzerland)
  • Travel Rule obligations apply for crypto transfers (ch.licensing.legislation-amla-anti-money-laundering-act)
  • Join a recognized SRO (VQF, SO-FIT, AOOS) for AML compliance and supervision (ch.aml.anti-money-laundering-act-amlagwg-core)

Key Restrictions

  • Clients' crypto assets must be held in bankruptcy-remote segregation under the DLT Act (ch.licensing.custody)
  • Banking license (CHF 10M+ capital, 12-18 months) or FinTech license (CHF 300K capital, 3-6 months, no lending) required for custodial wallet services holding client crypto assets (ch.licensing.custody)
  • No single 'crypto license' — activity-dependent licensing: SRO membership insufficient for custody of third-party assets (ch.licensing.vasp)
  • Technology neutrality applies: custody of crypto is regulated same as custody of traditional financial assets based on economic function (ch.licensing.technology-neutrality-regulation-focuses-on)
  • A local Swiss entity (corporation) is required to obtain a FINMA license and join an SRO

Key Risks

  • Regulatory ambiguity around allocation of AML obligations between SaaS custodian and white-label client — FINMA likely expects both parties to have compliance obligations
  • Banking-license burden (CHF 10M+ minimum capital, lengthy process) may be prohibitive for smaller custodial wallet operators
  • FinTech license caps deposits at CHF 100M and prohibits lending, limiting business model flexibility
  • Enforcement risk if FINMA determines the custody service constitutes unlicensed deposit-taking
  • Travel Rule compliance complexity for cross-border crypto transfers handled through the platform

Evidence

This verdict synthesizes the following facts. Each fact links to its primary source(s).

licensing 85% confidence

FINMA — All financial market supervision — licensing, AML enforcement, ICO/STO guidance, stablecoin regulation

[primary] FINMA
licensing 95% confidence

SROs (VQF, SO-FIT, AOOS) — Self-regulatory organizations for financial intermediation — common path for smaller crypto businesses

[primary] SROs (VQF, SO-FIT, AOOS)
licensing 20% confidence

DLT Act (Federal Act on Adaptation to DLT) (2021) — DLT securities, DLT trading facilities, crypto asset segregation in bankruptcy — amends 10 federal laws

licensing 20% confidence

AMLA (Anti-Money Laundering Act) (1998) — AML/CFT for VASPs — strict KYC/CDD, suspicious activity reporting, Travel Rule

licensing 20% confidence

FinIA (Financial Institutions Act) (2020) — Financial institutions licensing — asset managers, trustees

licensing 20% confidence

Banking Act / FMIA (1934) — Banking license, DLT trading facility license, securities dealer license

licensing 20% confidence

VASP: Activity-dependent — no single 'crypto license'. SRO membership (1-3 months, no minimum capital): exchange, brokerage. FinTech license (3-6 months, CHF 300K): deposit-taking up to CHF 100M without lending. Banking license (12-18 months, CHF 10M+): full banking. DLT Trading Facility (6-12 months): multilateral DLT securities trading.

licensing 20% confidence

CUSTODY: Banking license or FinTech license required for holding client crypto assets. DLT Act provides legal certainty — client crypto segregated in custodian bankruptcy.

licensing 20% confidence

Technology Neutrality: Regulation focuses on the economic function and purpose of an asset or activity, not the underlying technology. This means that if a crypto asset or service performs a function traditionally regulated by financial law, it will be subject to those regulations.

licensing 20% confidence

Licensing and Authorization: FINMA grants licenses for financial market activities. Depending on the nature of a crypto project, a FINMA license (e.g., banking, securities dealer, FinTech, DLT trading facility) might be required.

aml 20% confidence

Anti-Money Laundering Act (AMLA/GwG): Core legislation mandating AML/CFT obligations for financial intermediaries, including VASPs handling cryptocurrencies, custodians, and exchanges. It requires joining a recognized SRO and full compliance with KYC, record-keeping, and reporting.

aml 20% confidence

Threshold: KYC mandatory for transactions exceeding CHF 1,000 per month; prove ownership of non-custodial wallets.

aml 20% confidence

Enhanced Due Diligence (EDD): Required for high-risk clients (e.g., PEPs), unusual transactions, or third-party involvement; includes ongoing risk reviews and client segmentation.

aml 20% confidence

Collect personally identifiable information (PII) to prevent fraud, identity theft, and money laundering.

aml 20% confidence

Internal controls, staff training, and transaction monitoring (e.g., blockchain analytics for amounts over CHF 1,000) are required.

aml 20% confidence

Retain client identification data, beneficial owner details, and transaction records for at least 10 years (per AMLA standards).

aml 20% confidence

Conduct regular, risk-based reviews to keep data current; applies to both supervised and SRO-affiliated VASPs.

aml 20% confidence

Swiss Financial Market Supervisory Authority (FINMA): Primary overseer; licenses exchanges, issues guidelines (e.g., token classification), enforces AML, and supervises banking/securities activities involving crypto.

aml 20% confidence

Money Laundering Reporting Office Switzerland (MROS): Handles suspicious activity reports under AMLA.

Verdict Attribution

Source:
AI-Generated · Unreviewed
AI synthesized:
2026-07-13 (deepseek-chat)
Last updated:
2026-07-13
Confidence:
high

This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.

Conditional — custodial wallet / SaaS providers in Switzerland require either a banking license (CHF 10M+ capital) or FinTech license (CHF 300K capital, deposits capped at CHF 100M, no lending) to hold client crypto assets, plus SRO membership for AML compliance, with asset segregation protected under the DLT Act.

Questions this verdict aims to answer

  • What custody license / qualified-custodian status applies?
  • What segregation, insurance, and proof-of-reserves rules apply?
  • What AML obligations attach to the SaaS vs the white-label client?