Swiss Regulator FINMA Outlines New Rules on Crypto Custody Risks and Bank Requirements
Switzerland's Financial Market Supervisory Authority (FINMA) has issued stringent new guidance on cryptocurrency custody, targeting operational vulnerabilities and investor protections. The framework highlights cyber risks, counterparty exposures, and insolvency contingencies unique to digital asset storage.
Banks and portfolio managers must now use prudentially supervised custodians, with segregated crypto holdings potentially qualifying for capital relief. Product issuers face heightened disclosure requirements, mandated to deliver explicit risk warnings about crypto's speculative nature.
The rules acknowledge blockchain's distinctive challenges—irreversible transactions, private key dependencies, and third-party delegation risks. FINMA's approach mirrors traditional asset safeguards while adapting to crypto's technical realities.
