Switzerland Crypto-Friendly Business Framework: Licensing, Regulations & Benefits
Explore Switzerland's crypto-friendly framework, licensing options, AML rules, tax benefits, and how to align with EU MiCA for a successful crypto business.
AML Compliance
When working with AML compliance, a set of laws and procedures aimed at preventing money laundering and terrorist financing. Also known as anti‑money laundering, it requires transaction monitoring, reporting of suspicious activity, and close coordination with KYC verification, the process of confirming a user’s identity before allowing access to financial services. In practice, AML compliance encompasses risk assessments, customer due‑diligence checks, and continuous auditing. The rule “AML compliance requires robust transaction monitoring” holds true across exchanges, wallets, and DeFi platforms, while “KYC verification supports AML compliance” by providing the first line of defense against illicit actors. Understanding these links helps traders spot legit platforms and avoid hidden scams.
How Crypto Exchange Licensing Fits In
The next piece of the puzzle is crypto exchange licensing, the official permission granted by a jurisdiction for a platform to operate legally. This licensing framework shapes AML compliance because regulators often embed strict AML/KYC mandates into the licensing terms. For example, Vietnam’s new licensing directive (Resolution No. 05/2025) forces exchanges to hold a $379 M capital floor, limit foreign ownership, and enforce VND‑only trading – all measures that tighten AML oversight. Similarly, Indian exchange reviews highlight how non‑compliant platforms run into FIU scrutiny and ultimately get black‑listed. The semantic link “Regulatory frameworks shape crypto exchange licensing” explains why a well‑licensed exchange usually offers better AML safeguards, automatic SAR filing, and transparent fee structures.
Putting theory into practice means checking a platform’s AML policy, its KYC workflow, and whether it holds a valid crypto exchange license before you deposit funds. The articles below walk you through real‑world examples: a Bitbaby Exchange review that flags AML gaps, a deep dive into Vietnam’s licensing rules, and a checklist for spotting red flags in Indian exchanges. You’ll also find guides on project vesting terms, airdrop safety, and the impact of Iran’s mining subsidies on blockchain compliance. By the time you finish reading, you’ll have a clear checklist for evaluating any crypto service: confirm licensing, verify KYC procedures, and ensure the platform meets AML standards. Ready to see the detailed analyses? Browse the collection and start applying these compliance basics right away.