Swiss Council Proposes FinIA Amendments for Crypto Regulation

TLDR

• New licensing for stablecoin and crypto institutions proposed.
• Consultation period runs until February 6, 2026.
• FINMA to oversee compliance with new regulations.

On October 22, 2025, the Swiss Federal Council initiated a consultation for proposed changes to the Financial Institutions Act (FinIA). The proposed amendments aim to update regulations concerning stablecoins and crypto institutions. The council’s objective is to modernize Switzerland’s financial regulatory framework while addressing financial stability and consumer protection issues.

This move by the Swiss Federal Council is part of an ongoing effort to maintain the country’s leadership in the fintech and blockchain sectors. The proposal comes after previous regulatory actions, such as the introduction of the fintech license in 2018 and blockchain regulations in 2021.

Details of the Proposed Regulatory Amendments

The proposed amendments call for new licensing and oversight mechanisms for entities dealing in stablecoins and other cryptocurrency-related activities. According to the Federal Council’s official statement, the new regulations are designed to enhance market conditions, draw in innovative financial technologies, and ensure robust financial stability and consumer protection measures.

The Swiss Financial Market Supervisory Authority (FINMA) will play a crucial role in implementing these changes. It is expected to introduce new standards for licensing, supervising stablecoin issuers, and maintaining adequate reserves and redemption processes. Details of the proposals are available in an important document from Swiss Federal Department of Finance.

Impact on Crypto Institutions and Assets

The amendments will directly affect institutions currently operating under Switzerland’s fintech license. These companies will have one year to comply with the new requirements. The proposal eliminates the previous CHF 100 million deposit limit, thereby expanding growth opportunities for payment institutions.

New regulations specifically target stable payment crypto-assets, involving fiat-pegged Swiss stablecoins. While Ethereum (ETH) and Bitcoin (BTC) are included for prospective custody and payment services, the primary emphasis remains on stablecoins. Additional details on how the regulations impact the industry can be found in Swiss crypto regulations and their impact on the industry.

Consultation and Next Steps

The consultation for these regulatory amendments will run until February 6, 2026. Subsequently, the bill will be submitted to the Swiss Parliament for potential approval in the second half of 2026. Stakeholder input is encouraged through official government channels, as highlighted in the consultation text.

‘Download the full details regarding the amended regulations and their potential implications for crypto institutions and payment services.’ As of now, no public reactions have been recorded from high-profile figures in the crypto industry. The full regulatory impact will emerge over time as the consultation progresses and new compliance standards are built.