Switzerland Rolls Out $1.2B Stablecoin Plan Under FINMA’s New Rules
Switzerland has launched a major regulatory consultation on stablecoins to create a clear and safe environment for digital payments.
Quick overview
- Switzerland has initiated a regulatory consultation on stablecoins to establish a safe environment for digital payments.
- A new licensing category for stablecoin issuers will be introduced under FINMA, requiring strict transparency and reserve management.
- The consultation aims to gather feedback on integrating stablecoin payment systems into existing regulatory frameworks.
- Experts believe this move could enhance Switzerland's role in digital finance and bolster the stability of the Swiss franc.
Switzerland has launched a major regulatory consultation on stablecoins to create a clear and safe environment for digital payments. The announcement from Swiss regulators on October 22 unveiled a brand new licensing category under the FINMA banner for the issuers of what they’re calling “value-stable blockchain-based tokens”. This is the biggest step Switzerland has taken so far toward integrating stablecoins into its financial system, which could be worth over $1.2 billion in market activity.
The consultation seeks public and industry comments on how to make stablecoin-based payment systems work with regulatory frameworks. Even though others, such as Singapore and Dubai, have been working on this for longer, Switzerland’s slow, considered approach is giving it a chance to learn from others’ experiences and avoid costly regulatory mistakes.
Key Requirements That Issuers Have to Meet
Under the proposed rules, people who issue stablecoins must stick to some tough requirements around transparency and how they manage their reserves:
- Issued tokens must be fully backed by high-quality liquid assets, so if someone wants to cash them in, there are actually assets to back them.
- Issuers must keep their reserves separate from other assets to protect investors.
- They have to get a FINMA-approved white paper written that explains the project, including how the financials work and what safeguards are in place.
- They have to give FINMA 60 days’ notice before launching a stablecoin and ensure that anyone holding the coin can cash it in at face value right away.
Foreign stablecoins sold in Switzerland will be classified as crypto assets rather than payment instruments. But offshore issuers don’t have to set up shop in Switzerland or duplicate their reserves unless they’re actually issuing coins to people in the country.
A Big Move Forward for Financial Stability
Industry experts think that Switzerland is positioning itself to play a major role in the world of digital finance. Dea Markova of Fireblocks said that this framework has the potential to be a “game changer” for building markets for tokenised assets and bonds—and that it’s all thanks to the introduction of “cash-on-chain” mechanisms.
Hany Rashwan, founder of 21Shares, also thinks that stablecoins could help make the Swiss franc even more stable and attractive to investors around the world, which is exactly in line with Switzerland’s long-standing reputation as a responsible and prudent financial operator.
The consultation will remain open until February 2026, after which the government will finalise and implement the new laws.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save