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Switzerland issues Stablecoin Guidance

Writer's picture: Michael BacinaMichael Bacina

Updated: May 2, 2024


Swiss Financial Market Supervisory Authority FINMA, has announced supplemental guidance for stablecoins (FINMA adopts the term stable coins), including Libra. This guidance is in addition to FINMA's guidance for other blockchain based crypto-graphic tokens.


FINMA recognises that stablecoins can vary greatly depending on what asset is backing the token and what the rights the holder of the token enjoys.


That is, FINMA's approach considers the substance of the token and its purpose is the starting point.


Libra Association's request for FINMA comment was answered by FINMA saying Libra would "fall under financial market infrastructure regulation" and would require a "payment system licence" and compliance with the Swiss Anti-Money Laundering Act and that the additional services planned for Libra "would clearly go beyond those of a pure payment system" and so would be subject to additional regulation.


Read the full release and guidance here.



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