The Swiss Financial Market Supervisory Authority (FINMA) has opened bankruptcy proceedings against the fintech startup SWISS4.0 SA due to serious liquidity issues and concerns over over-indebtedness.

FINMA has appointed Valfor Avocats Sàrl as the bankruptcy liquidator.

FINMA had been closely monitoring SWISS4.0 SA and had previously imposed measures to improve its financial position.

However, the company and its management were unable to implement sufficient corrective actions within the required timeframe.

Given the ongoing financial distress, FINMA was compelled to declare the startup bankrupt on 4 March 2025.

SWISS4.0 SA was a micro-startup with approximately 250 customers.

In November 2022, FINMA granted SWISS4.0 a fintech license to operate as a financial institution.

The fintech licensing framework under Article 1b of the Swiss Banking Act was designed with intentionally low regulatory requirements to facilitate innovation and encourage new business models.

However, this also means there is a heightened risk that some business models may prove unsustainable in practice.

In the event of a fintech institution’s bankruptcy, customer funds are neither prioritised nor covered by deposit insurance.

Fintech-licensed institutions are therefore legally required to inform their customers of this risk.

As part of ongoing regulatory efforts to adapt financial market laws to innovative business models, FINMA is advocating for improved protection of customer funds in cases of institutional failure.

Under the fintech licence, institutions may accept public deposits of up to 100 million Swiss francs or crypto-based assets.

However, these funds cannot be invested or accrue interest.

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