FINMA sets crypto-asset custody duties for authorised financial institutions
Swiss authorised firms remain responsible for crypto custody provider controls
FINMA
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Change
On 12 January 2026, FINMA issued guidance making authorised financial institutions responsible for ensuring that crypto-based asset custody arrangements use appropriately monitored providers and protect client assets from a custodian’s bankruptcy estate.
Why it matters
Authorised financial institutions cannot rely on external crypto custody providers without retaining responsibility for provider oversight, technical controls and insolvency protection. Foreign custody arrangements create additional legal risk because firms must ensure client crypto-based assets remain segregated if the custodian becomes insolvent.
Implications
- — FINMA-supervised authorised financial institutions offering crypto-based asset custody must verify that custody providers are appropriately monitored and supported by robust technical infrastructure — failure leaves the institution responsible for client asset-safekeeping risks.
- — Authorised financial institutions using third-party custodians must ensure client crypto-based assets are legally protected from the custodian’s bankruptcy estate — failure exposes clients to insolvency risk while responsibility remains with the authorised institution.
- — Authorised financial institutions using foreign crypto custodians must resolve cross-border insolvency and asset-segregation issues before relying on those providers — failure leaves custody arrangements legally exposed if the foreign custodian fails.
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