FINMA, the Swiss Financial Market Supervisory Authority, classifies tokens into three categories: payment, utility and asset. This classification, set out in its ICO guidelines of 16 February 2018, rests on the token's economic function and its transferability. It determines which rules apply in Switzerland: anti-money laundering, securities law or FINMA authorisation.
This detail page deals with a single question: how a token is classified, and what that classification entails. For an overview of supervision, see our page FINMA and cryptocurrencies. The taxation of cryptocurrencies, which lies outside FINMA's remit, is covered in our section crypto regulation and taxation.
What criteria does FINMA use to classify a token?
FINMA judges a token by what it does, not by the technology behind it. It applies existing Swiss financial market law, in the name of technology neutrality. It neither favours nor penalises blockchain.
Two phrases sum up this approach, according to its press release of 11 September 2019:
- "Substance over form": only the token's economic function and purpose count;
- "Same risks, same rules": a risk comparable to that of a bank calls for the same requirements as a bank.
Two criteria then guide the classification: the token's economic function and its transferability. On the second point, FINMA checks whether the token is already tradable or transferable before the ICO even begins. The name an issuer gives its token is therefore not enough to classify it.
This framework is FINMA's own, not a global standard. In 2018, the authority noted that there was no universally recognised classification of tokens, in Switzerland or elsewhere. Its guidelines answered questions of regulatory status and supplemented its supervisory guidance 04/2017. They did not create ICO-specific regulatory requirements: FINMA applied existing financial market law, case by case.
What is a payment token for FINMA?
A payment token is a pure "cryptocurrency", as FINMA understands the term, with no link to other functions or projects. It is used to pay and it is transferable. For FINMA, it is not a security. It also notes that some tokens only acquire their payment function, and their acceptance as such, over time.
This token is, however, subject to the rules against money laundering. FINMA considers ICOs whose tokens serve as a means of payment and are already transferable to be clearly subject to these rules. The Anti-Money Laundering Act (AMLA) covers anyone who accepts assets belonging to third parties, or helps to invest or transfer them. FINMA cites the provision of wallets, exchange, payment services and trading in virtual currencies such as bitcoin.
Anyone subject to the AMLA must join a self-regulatory organisation (SRO). They must also comply with due diligence obligations, such as identifying beneficial owners. The choice of a possible licence on top of this membership is covered on our page FINMA crypto authorisation.
What is a utility token?
A utility token provides access to a digital application or service. FINMA does not treat it as a security on two conditions: it confers only this right of access, and it can be used for that purpose from the date of issue.
The classification can, however, shift. If a utility token also has an investment function, or only that one, FINMA treats it as a security, in other words as an asset token. If it can be used, or is intended to be usable, as a general means of payment, it may also fall under the Anti-Money Laundering Act.
What is an asset token?
An asset token represents a share in physical assets, a company or earnings. It can also give a right to dividends or interest. Depending on its economic function, FINMA treats it as equivalent to a share, a bond or a derivative financial instrument.
FINMA considers it a security. Its issue generally triggers a prospectus requirement under the Code of Obligations. Its trading follows the rules on securities trading, and a securities firm licence must be considered.
A platform that trades these tokenised securities on a multilateral basis needs a licence as a distributed ledger technology (DLT) trading facility. This status is governed by the Financial Market Infrastructure Act (FinMIA).
Can a token fall into several categories?
Yes: FINMA accepts hybrid forms. A single token can combine access to a service, a payment function and an investment function. The rules for each function then apply.
| Category | Function | Treatment by FINMA |
|---|---|---|
| Payment token | Means of payment, pure cryptocurrency | Not a security; Anti-Money Laundering Act and SRO membership for intermediaries |
| Utility token | Access to a digital application or service | Not a security if it only provides this access and can be used from issue; treated as an asset token if it has an investment function; Anti-Money Laundering Act if it is used to pay |
| Asset token | Share in physical assets, a company or earnings; right to dividends or interest | Security; prospectus requirement as a general rule; rules on securities trading |
Where do stablecoins fit?
Stablecoins go through the same framework, case by case. FINMA made this clear in a supplement to its ICO guidelines, presented in its press release of 11 September 2019. In it, FINMA said it had been examining a growing number of such projects since 2018.
These tokens limit their volatility through backing assets: currencies, commodities, real estate or securities. The requirements depend on these assets and on the rights granted to the holder; Annex 2 of the supplement gives an overview. Depending on the case, FINMA cites the Anti-Money Laundering Act, securities trading, the Banking Act, the Collective Investment Schemes Act and the FinMIA.
The Libra project served as an example in 2019, at the request of the Geneva-based Libra Association. According to FINMA's preliminary assessment, it would have required a payment system licence under the FinMIA. This licence entails requirements on capital, liquidity and reserve management. FINMA set a fundamental condition: the association, not the token holders, had to bear the gains and risks of reserve management in full.
FINMA also clarified the scope of this opinion. Its classification could change as the project evolved, and a licensing procedure could only begin with a concrete application. Questions of tax, competition or data protection went beyond supervisory law and therefore fell outside its remit.
A dated example shows why the holder's rights matter. On 12 October 2026, the Financial Stability Board (FSB) submitted a note on global stablecoins to the G20 finance ministers, reports Journal du Coin. In it, the FSB puts their capitalisation at 300 billion dollars in mid-2026, 99% backed by the dollar. The FSB describes an issuer that "may not know who holds its liabilities", while its reserves remain anchored in one or two jurisdictions. This note concerns global financial stability, not Swiss classification.
What does this classification change for an SME or an individual?
For an SME or a start-up, the token's classification comes before any launch. FINMA asks it to check whether it is subject to the AMLA and whether it may need a licence, before starting the activity. It provides a dedicated address, fintech@finma.ch, for presenting a project.
As early as its 2018 guidelines, FINMA announced enforcement proceedings against fraudulent models or those that circumvent the law. It observed at the time that financial market law affected ICOs mainly through anti-money laundering and securities trading. Cases falling under the Banking Act or the Collective Investment Schemes Act were rarer.
For an individual, a token's category says nothing about its market risk. It indicates which rules govern the provider that sells or holds it. As early as 2018, FINMA warned that the prices of tokens acquired in an ICO are generally highly volatile. It also noted civil law uncertainties regarding the transfer of the rights attached to tokens. The FINMA website publishes an "Authorised institutions" section and a "Warnings" section, which our page on the FINMA crypto warning list explains in detail.
Key figures
- 3 types of tokens distinguished by FINMA: payment, utility, asset.
- 2 classification criteria: economic function and transferability.
- 16 February 2018: FINMA's ICO guidelines.
- 11 September 2019: supplement devoted to stablecoins.
- 300 billion dollars: stablecoin capitalisation in mid-2026, 99% backed by the dollar, according to the FSB.
- 80% of the institutions surveyed in the University of St. Gallen's Swiss Blockchain Survey 2026 see stablecoins and central bank digital currencies as the main trend.
What we don't know yet
Several points remain open in the sources consulted. The FINMA documents on stablecoins cited here date from 2019: they do not say how this practice has evolved since. In 2018, FINMA reserved the right to publish a circular on the application of the law to ICOs; the sources consulted do not say whether it did so. FINMA mentions a planned amendment to financial market law to promote innovative business models, without specifying its content or timetable. Finally, the FSB note sets no reporting date and adds no recommendations: those of 2023 remain the reference.
Sources
- Journal du Coin: FSB note to the G20 on stablecoins (12 October 2026)
- FINMA: "FINMA publishes ICO guidelines" (16 February 2018)
- FINMA: "FINMA publishes its position on stablecoins" (11 September 2019)
- FINMA: official website (authorised institutions and warnings)
- 2clics: FINMA and cryptocurrencies and FINMA crypto authorisation
