Stablecoins: how they are regulated in Switzerland

A stablecoin is a token designed to hold a stable value, typically pegged to a currency such as the franc or the euro, or to a basket of assets. The idea is simple; the legal classification much less so. In Switzerland there is no “stablecoin law”: there is the practice of FINMA, which classifies each project on the basis of its actual structure. And depending on the structure, the obligations change radically.

The principle: what counts is the underlying right

FINMA does not look at the name “stablecoin”, but at what the token embodies and which rights it grants the holder vis-à-vis the issuer. The key question is: what does the token holder actually own? A claim against the issuer? A share in a managed pool of assets? A simple means of payment backed by reserves? The answer determines the applicable regime.

The main classifications

Depending on how it is constructed, a stablecoin may fall under different regimes:

Bank deposit. If the holder has a redemption claim against the issuer and the latter accepts public funds, the token may constitute the acceptance of deposits — an activity reserved for banks. In that case a banking licence is required, unless the structure brings the operation within specific exceptions (for example coverage through adequate guarantees).
Collective investment. If the reserve assets are managed on behalf of and for the benefit of the holders, following logics of return and diversification, the project may fall under the rules on collective investment schemes.
Payment token with reserves. Some structures aim to have the token classified as a backed means of payment, reducing the banking perimeter — but with stringent constraints on how the reserves are held and protected.
Derivative or security token, where the peg is to a basket of assets or it embodies financial rights.

The regime is not a matter of choice: it flows from the architecture of the project. Designing the structure before launching is what determines the outcome.

The crux of reserves and guarantees

The heart of a credible stablecoin is its reserves: what backs them, where they are held, who is answerable for them and how they are protected in the event of the issuer’s insolvency. FINMA has paid particular attention to the topic of guarantees: when holders have a protected right — for example through a bank guarantee — both the licensing perimeter and the effective protection of holders change. Transparency, quality of reserves and clear rights are not marketing: they are legal elements that shift the classification.

The anti-money-laundering dimension

There is then a layer that applies almost always: anti-money laundering. Issuing and circulating a stablecoin typically involves activities relevant under the Anti-Money Laundering Act (AMLA): identification of holders, verification of the beneficial owner, monitoring and, when tokens are transferred, the travel rule requirements. The issuer must set up a solid KYC/AML framework, with membership of a self-regulatory organisation (SRO) or FINMA authorisation depending on the perimeter.

The typical mistakes

Launching before classifying: the structure is decided upstream, not after the first user.
Opaque reserves: without clarity on coverage and custody, trust — and a favourable classification — collapse.
Underestimating AML: a stablecoin is a means of payment, and means of payment attract anti-money-laundering attention.
Ignoring the cross-border dimension: distributing the token abroad opens up further regimes to coordinate.

How we approach it

Regulating a stablecoin properly means aligning legal structure, reserve model and AML framework from the design stage. SIH ONE handles the structuring and advisory: we classify the project according to FINMA’s practice, we design the architecture of the reserves and guarantees, and we build the anti-money-laundering framework. Our team brings hands-on experience as an AMLA Compliance Officer, a concrete advantage when the framework has to withstand scrutiny. Activities subject to authorisation — from the banking licence to supervisory regimes — go through authorised partners.

This guide is informational and does not constitute legal or tax advice. The regulatory framework for digital assets is evolving: we always verify the specific case.

Do you have a stablecoin or payment token project to structure? Let’s talk: we will define the classification and the right regulatory path.