The Swiss Financial Market Supervisory Authority (FINMA) has published new guidance on how banks and securities firms must disclose crypto-based assets in their annual financial statements, bringing long-awaited clarity to an issue that has lingered since the country’s Distributed Ledger Technology (DLT) Act came into effect in 2021.
From “Cryptocurrencies” to “Crypto-Based Assets”
The terminology shift is central. Under the DLT Act, the term crypto-based assets formally replaces the narrower category of “cryptocurrencies,” previously equated with payment tokens. This broader scope recognizes a wider set of blockchain-based assets, including custody arrangements, while reaffirming that asset tokens remain classified as securities.
Previously, cryptocurrencies held by banks for clients were treated as fiduciary transactions under Article 16 no. 2 of the Banking Act, requiring off-balance sheet disclosure. With the DLT Act, this framework became outdated: crypto-based assets can now be treated as custody assets under Article 16 no. 1bis, even if they are not securities.
FINMA’s Key Guidance
- End of Fiduciary Classification
- Crypto-based assets are no longer to be disclosed as fiduciary transactions under FINMA Circular 20/1.
- The old margin no. 214 disclosure category must remain blank going forward.
- Banks Must Maintain Transparency
- Although fiduciary reporting no longer applies, FINMA stresses that disclosure remains essential due to the technological and operational risks inherent in crypto custody.
- Banks may choose where to disclose these items in their financial statement notes but must ensure comparability with prior years.
- Changes to Supervisory Reporting
- Amounts relating to fiduciary crypto holdings are no longer to be reported under the AU201/AUH201 forms of the AUR_U supervisory survey.
- Instead, FINMA will rely on the new EHP survey on crypto-based assets, ensuring consistent oversight of banks’ and securities firms’ crypto custody activities.
- Crypto-assets qualifying as securities must still be reported under custody account volume disclosures.
Implications for Switzerland’s Crypto Industry
1. Stronger Regulatory Certainty
For Swiss banks and crypto custodians, this guidance removes the grey area around whether crypto holdings for clients should be treated like fiduciary investments. The new custody asset designation aligns disclosure with traditional financial instruments, signaling institutional acceptance.
2. Increased Compliance Burden
Banks must adjust internal reporting systems to comply with the revised framework, especially ensuring transparent footnotes and consistent year-to-year comparisons. Smaller banks entering the crypto custody market may face higher compliance costs.
3. Boost for Institutional Adoption
Clearer disclosure standards reduce legal uncertainty for global investors. Switzerland’s crypto custody sector could benefit from increased institutional participation, particularly from pension funds, family offices, and international wealth managers who demand regulatory clarity before allocating capital.
4. Competitive Edge for Switzerland
The move reinforces Switzerland’s reputation as a crypto regulatory pioneer. By clarifying disclosure obligations, FINMA is providing a model that other regulators—particularly in the EU and Asia—may look to replicate as banks globally integrate digital asset services.
5. Ongoing Risks
FINMA’s insistence on transparency reflects recognition of the unique risks tied to crypto custody: operational failures, cyberattacks, and blockchain-specific vulnerabilities. The regulator is signaling that while crypto is accepted, it must be handled under stringent oversight.
Conclusion
FINMA’s Guidance 03/2025 is more than a technical accounting update. It is a strategic signal: Switzerland is embedding crypto into its mainstream financial regulatory framework while insisting on high disclosure standards.
For the Swiss crypto industry, the message is double-edged—greater legitimacy and institutional inflows, but also greater compliance obligations. Ultimately, the move strengthens Switzerland’s position as a global hub for regulated digital finance, balancing innovation with prudence.
Original Document:
- FINMA Guidance 03/2025: Disclosure of crypto-based assets in banks’ annual financial statements (5 Sept 2025) – FINMA
