Switzerland: Federal Council opened consultation on amendment to Financial Institutions Act, including quality of service requirement

On 22 October 2025, the Federal Council opened a consultation on the amendment to the Financial Institutions Act, including quality of service requirement, until 6 February 2026. It applies to entities engaged in crypto asset services, stablecoin issuance, and payment operations, particularly those serving retail clients. The framework mandates whitepapers for crypto offerings, standardised risk disclosures, and suitability assessments, alongside operational requirements including asset segregation, redemption rights for stablecoin holders at par value within a short period, and transaction recording with audit trails. The amendment also provides that payment institutions are required to guarantee on-demand redemption, maintain 100% asset backing in the same currency, and notify the Financial Market Supervisory Authority of any breaches. It also requires crypto asset providers to ensure asset availability, segregation, and transparency.