Switzerland: Federal Council opened consultation on amendment to Financial Institutions Act, including licensing for payment instrument institutions

On 22 October 2025, the Federal Council opened a consultation on the amendment to the Financial Institutions Act, including licensing for payment instrument institutions, until 6 February 2026. The amendment to the new payment instrument institution licence replaces the former financial technology (fintech) firms licence under the Banking Act. The amendment applies to entities accepting client deposits and offering payment services, including the issuance and custody of Swiss stablecoins. It removes the previous CHF 100 million cap on deposits and mandates segregation of client funds, allowing deposits only with Swiss banks, other payment institutions, or in high-quality liquid assets with short-term maturity. As with the former fintech licence, these institutions may not pay interest or engage in lending or credit activities.