Switzerland: FINMA Token Classification Framework
In Switzerland, the Swiss Financial Market Supervisory Authority (FINMA) classifies tokens based on their economic function and intended use case. This functional approach determines whether a token falls under existing financial market laws and which regulatory requirements apply.FINMA does not create new legal categories for digital assets but instead evaluates how each token fits within Switzerland’s well-established financial and securities frameworks.
FINMA’s Three Token Categories
FINMA recognizes three primary token types:
Payment Tokens
Designed as a means of exchange or payment for goods and services.
Not linked to specific projects or claims on issuers.
Examples: cryptocurrencies like Bitcoin or Litecoin.
Typically exempt from securities regulation but may fall under AML laws.
Utility Tokens
Provide access to a digital application, platform, or service.
Must serve a clear utility function at the time of issuance.
May be unregulated if they do not also confer investment characteristics.
Asset Tokens (Security Tokens)
Represent ownership, debt claims, or economic participation rights.
Functionally similar to stocks, bonds, or derivatives.
Classified as securities under Swiss law and subject to financial market regulations.
Tokens with overlapping characteristics (e.g., utility + investment return) may be classified as hybrids, in which case the stricter regulatory regime applies.
Implications for Issuers
If a token is classified as an asset token (security), it triggers compliance obligations such as:
Securities law disclosures
KYC/AML and investor onboarding control.
Potential licensing for issuance, custody, or secondary market trading
Prospectus filing or exemption under the Swiss Financial Services Act (FinSA)
FINMA supports tokenized asset models but emphasizes legal clarity and investor protection.
Key Insight for Issuers
In Switzerland, most tokenized equity, real estate, debt, or revenue claims are classified as asset tokens and regulated as securities. To issue tokens legally, issuers must align their model with FINMA’s classification and comply with Swiss financial market law, including FinSA, FinIA, and AMLA obligations where applicable.
Was this helpful?