Switzerland: Federal Council opened consultation on amendment to Financial Institutions Act, including user identification requirement

On 22 October 2025, the Federal Council opened a consultation on the amendment to the Financial Institutions Act, including user identification requirement, until 6 February 2026. The amendment applies to payment institutions issuing stablecoins and intermediaries in secondary market transactions. It also requires issuers to conduct full Know Your Customer (KYC) verification, identify beneficial owners, and maintain ongoing monitoring. It also requires them to adopt either a whitelist or blacklist system with risk-based controls or ensure that all secondary holders are verified by supervised intermediaries. It also requires issuers to retain the technical ability to block, freeze, or retrieve tokens to enforce anti-money laundering compliance.