Switzerland: Financial Market Supervisory Authority adopted guidance on custody of crypto-based assets

On 12 January 2026, the Financial Market Supervisory Authority (FINMA) adopted its guidance on the custody of crypto-based assets to address operational and legal risks. The guidance explains the risks associated with custody of crypto-based assets and specifies requirements for supervised institutions, including banks, securities firms, and portfolio managers, to ensure the protection of client assets in connection to relevant legislation, including the Distributed Ledger Technology Act and the Banking Act. According to the document, institutions must ensure that crypto-based assets are segregable in the event of a custodian's insolvency. When delegating custody to third parties abroad, the guidance stipulates that the foreign custodian must be subject to equivalent prudential supervision and provide comparable bankruptcy protection. Portfolio managers using non-equivalent custodians must prove they have informed clients of increased risks, informed clients about alternative custodians, and obtained written consent. Furthermore, direct investments in crypto-based assets within collective investment schemes must generally be held by a Swiss custodian bank unless specific delegation conditions are met.