Switzerland Bars Russian Nationals From Buying Swiss Crypto Companies
Switzerland's regulator FINMA said on 6th November that Russian nationals and Russia residents can no longer acquire ownership of Swiss crypto service firms.
The Swiss Federal Council decided on 4th November to adopt the measures of the European Union's 21st sanctions package against Russia and Belarus, according to FINMA's notice of 6th November. FINMA is the Swiss Financial Market Supervisory Authority.
In the financial sector, FINMA said, the Federal Council tightened its crypto measures further. Russian nationals and people resident in Russia may no longer acquire ownership of Swiss companies that provide crypto-related services, regardless of the type of service.
The Federal Council's press release of 4th November gives the same rule: Russian nationals and persons resident in Russia may no longer acquire an interest in Swiss companies providing services in the crypto sector, "regardless of the nature of the services offered". Neither notice says what happens to stakes Russian nationals or residents already hold, and neither names an affected Swiss company.
Dates And Duties For Intermediaries
The Federal Department of Economic Affairs, Education and Research extended and adjusted the Russia and Belarus sanctions lists on 3rd November, FINMA said. The list changes took effect on 4th November, and the sectoral measures came into force on 5th November. The Federal Council's release lists the crypto rule under measures targeting the financial sector; neither notice gives the rule's own date.
FINMA called on financial intermediaries to implement the bans, freeze the assets of sanctioned persons and report the affected business relationships to SECO, Switzerland's State Secretariat for Economic Affairs. A report to SECO does not replace anti-money-laundering checks, FINMA added. Where suspicion remains, the intermediary is to clarify it under article 6 of the Money Laundering Act and, if it cannot, report immediately to the Money Laundering Reporting Office under article 9.
What Else The Swiss Package Contains
According to the Federal Council, 254 further individuals, companies and entities face asset freezes. Transaction bans cover 33 Russian banks, one third-country bank and 17 financial institutions and crypto service providers, along with other companies, airports and ports. The release does not name the 17. It extends some existing exemptions, among them for the orderly winding-up of business in Russia, but states no exemption to the crypto ownership rule.
How This Compares With The EU Package
The European Union's own account of the package, published by its delegation to Ukraine on 24th July, after the EU adopted the package on 23rd July, describes crypto measures of a different kind: a transaction ban extended to 14 crypto-related platforms based in Georgia, Panama, the UAE, the Marshall Islands, Kyrgyzstan and Belarus, and a new option to ban crypto-asset services from a whole third country. That page does not mention a bar on Russian ownership of crypto firms.
FINMA and the Federal Council say the crypto tightening is among the financial-sector measures Switzerland adopted from the package. Neither says the ownership bar is an EU provision, so which EU measure it matches, if any, is not stated.
Context
The US Treasury has issued an order on MEXC transfers under the Combating Russian Money Laundering Act, described in our earlier report. The Financial Action Task Force has also opened a targeted review of crypto. For how rules differ by country, see crypto regulations explained globally.
