The Swiss Federal Council has launched a consultation on a proposed amendment to the Financial Institutions Act.

The bill aims to update the regulatory framework to support market development, integrate innovative financial technologies, and mitigate risks to financial stability, integrity, and investor and consumer protection.

The consultation will run until 6 February 2026.

The proposed amendment introduces two new license categories.

Payment instrument institutions would replace the existing fintech license, with adjustments to improve attractiveness and consumer protection.

Client funds would be segregated in the event of institution failure, and the current CHF 100 million limit on taking client deposits would be removed.

These institutions would also be permitted to issue a special type of stablecoin, subject to defined obligations, including detailed anti-money laundering due diligence requirements.

Crypto-institutions would provide services with cryptocurrencies.

Their licensing and operational criteria are based on those for securities firms but are less comprehensive, as they do not offer services with financial instruments.

They must also meet requirements to prevent conflicts of interest.

“Certain adjustments are still necessary in order to further improve the attractiveness of the Swiss regulatory framework and to strengthen consumer protection,”

the Federal Council said in its 2022 evaluation report.

The new bill also implements international standards for the supervision of stablecoins and other cryptocurrency services.

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