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Opening a new business is always a risk because it is necessary to take into account a large number of different factors. For the crypto industry, the legislative framework of this area and whether it is possible to obtain a work permit here quickly is particularly important. Today, we want to discuss how long it takes to get a Switzerland crypto license, what stages people need to go through, and what you should pay attention to.
Who controls activities?
The main regulatory body for companies’ financial activities is FINMA. The regulator’s responsibilities include issuing crypto activity licenses and ensuring organizations comply with the AML program. FINMA and the SIF formulate company requirements, ensuring compliance with Swiss legislation. Their joint work results in the development of blockchain projects and adjustments to financial legislation.
A permit is necessary for legal and financial activities related to virtual currency. The Swiss Tax Office defines e-money as financial instruments for commercial transactions. FINMA and the Swiss authorities support crypto firms using distributed ledger technology and take action if they identify illegal financial transactions within the company.
The process of receiving a document
To permit crypto activities, you must go through several stages, which we will describe below.
Preparation of preliminary documentation (5 working days)
In the first stage, you need to come up with a unique name for your firm and collect the required package of such papers :
- copies of identity cards of the company’s management ;
- documentary evidence of registration of management personnel – provide paid utility bills;
- powers of attorney;
- detailed description of the company’s business program and its structure.
You can proceed to the next registration stage when all the necessary documents have been completed.
Staff formation and firm organization (4 weeks)
Registering your company takes place at this stage, and all corporate documents are prepared. It is also necessary to form a staff and appoint a manager (resident) and a responsible AML officer. Next, purchase or rent an office by providing a Sales and Purchase Agreement or a Lease Agreement.
Licensing (3 – 5 weeks)
The necessary papers for licensing are prepared, and an AML and KYC program is developed and implemented into the company’s activities. Then, an application for a permit is submitted to the SRO. At this stage, there is close cooperation with a representative of the SRO until permission for activities is obtained.
Opening a bank account (4 – 6 weeks)
To select a bank, you need to analyze several banks. To do this, you should compare the financial risks and the requirements set by the bank (to what extent they will satisfy your firm ). You also need to check the bank for compliance with your AML program. To start opening a bank account, you must prepare the required papers, including the movement of money, the source of capital, the purpose of extending the report, a list of potential partners, and much more.
Thus, registering a crypto organization can take from 2.5 to 3.5 months.
What criteria must you meet?
Licensing requirements may vary depending on the type of permit and the company’s services provided. We list the general requirements for all kinds of crypto licenses:
- firm form (LLC, JSC, or corporation);
- a detailed business project, which reflects the goals, services provided, management scheme, internal control program (audit), reporting, risk assessment and compliance with legal requirements;
- financial reserve for current costs of operations and the occurrence of risks – from 20 thousand Swiss francs;
- presence of a physical office within the state;
- at least one manager and AML officer must be Swiss residents.
The financial activities of all organizations are strictly controlled by the authorities and the Regulator. Particular emphasis is placed on compliance with AML/CTF and KYC policies and ensuring the reliability and safety of financial transactions and customer protection.
Conclusion
This country is a very reliable and promising jurisdiction for crypto activities. The country has all the conditions for implementing a business project: stable politics and economy, developed infrastructure, and innovative technologies. The permit is one of the most prestigious in the world, thereby increasing the company’s rating and promoting effective development. The presence of a permit will attract business partners who value reliability and security in financial activities.
