Planned revision of the Financial Institutions Act (FINIG) – introduction of two new licence categories

The planned revision of the Financial Institutions Act (FINIG), which is expected to come into force in 2027, provides for the introduction of two new licence categories for payment institutions and crypto institutions. These consist of crypto-loans, which enable the development and harmonisation of tokenisation standards through new asset classes, and crypto-derivatives. As part of the revision, other financial market laws – namely the FIDLEG, the AMLA, the FINMAG and the FinfraG – are also to be amended.

The basis for the two new licence categories is an adjustment to the definition of ‘token’, which is currently divided into three categories by FINMA (payment tokens, utility tokens and asset tokens). Accordingly, the revision will further differentiate this into ‘stable crypto-based means of payment’ on the one hand, and ‘crypto-based assets of a trading nature’ on the other.

Stablecoins issued in Switzerland (1.), whose value is pegged to a single state-issued fiat currency (2.), whose value must be kept stable (3.) and whose issuer is obliged to repay the holder the fixed value of the stablecoin (4.) are now to be designated as stable crypto-based means of payment. Stablecoins that do not meet one of these four requirements, on the other hand, are to be classified as collective investment schemes, financial market instruments or, newly, crypto-based assets of a trading nature.

Payment institutions

The introduction of the payment institution licence planned under the new FINIG is intended to replace the fintech licence introduced in 2018. Consequently, the business activities described in Art. 1b of the Banking Act and Art. 51a of the new FINIG are very similar. The most significant amendments relate, on the one hand, to the new term ‘customer funds’, which is now specifically introduced for all activities of payment institutions. This is intended to simplify the differentiation between payment institutions and banks, as well as their differing treatment.

Furthermore, the revised FINIG is intended to include, with regard to payment institutions, an obligation to segregate customer funds (which are not part of the bankruptcy estate); a prohibition on paying interest; an exclusive right to issue stable crypto-based means of payment; the removal of the licensing requirement above the threshold of CHF 100 million; a disclosure obligation regarding the terms and conditions of the token, reserves and material risks; and subjection to the AMLA and the FIDLEG.

Crypto-institutions

However, according to the revised FINIG, the newly introduced concept of crypto-institutions is also intended to include a prohibition on unsecured proprietary trading and credit transactions; an obligation to segregate assets, and subjection to the AMLA and the FIDLEG. Subjection to the AMLA means that crypto-institutes must now implement the measures provided for in the AMLA and are thus directly subject to FINMA – and no longer, as was previously the case, to the self-regulatory organisation (SRO).

Transitional provisions

For both new licence categories (payment institutions and crypto-institutions), providers not previously regulated must submit a licence application within 12 months of the revision coming into force. Financial institutions already subject to supervision are obliged to ensure compliance with the new regulatory requirements within the same timeframe. Banks wishing to carry out activities as payment institutions must establish a separate legal entity for this purpose.

Conclusion

The planned amendment to the FINIG contributes to the international harmonisation of the regulatory framework in the area of crypto-based financial services. Financial institutions already active in the crypto sector should closely monitor further developments and familiarise themselves with the new requirements at an early stage to ensure compliance with the law.