Over the past few years, Switzerland has made progress in formulating clear crypto regulations, making it a digital innovation hub that has attracted hundreds of blockchain companies. According to Henley and Partners’s recent report, Switzerland was among the top ten countries that witnessed massive crypto adoption in 2023.
Are you in Switzerland and looking to buy your first digital currency? If so, this article is designed for you. We’ll demonstrate how to buy Bitcoin, the most popular cryptocurrency, while in Switzerland. Stick around.
Are Cryptocurrencies Legal in Switzerland?
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As mentioned, Switzerland has adopted clear rules for crypto. The country’s financial regulators recognize Bitcoin and other leading cryptocurrencies as legal property or assets. They also allow exchanges and peer-to-peer trading platforms to offer crypto services to Swiss citizens after obtaining the required licenses. Note that gains realized via crypto trading are subject to income taxes in Switzerland.
Platforms that offer crypto services are classified as virtual asset service providers. They are required to comply with Switzerland’s Financial Services Act, the Know Your Customer, and Anti-Money Laundering policies. These providers must secure licenses from the Financial Market Supervisory Authority.
Crypto Adoption in Swiss Banking Sector
Here is how financial institutions in Switzerland are embracing crypto and blockchain technology:
Crypto Services
Swiss banks provide the following crypto services:
Trading: Several banks have partnered with reputable trading platforms to allow their customers to purchase and sell digital assets.
Wealth management: Many financial institutions have added Bitcoin to their investment portfolios as part of their diversification strategies.
Custodial services: Some Swiss banks relieve their customers of the burden of holding digital assets by storing them on their behalf.
Banks in Switzerland Adopting Blockchain Technology
Cantonal Bank is one of the financial institutions embracing crypto and blockchain technology in an effort to attract the younger generation and diversify its income streams. Falcon Private Bank, on the other hand, recently hired crypto experts to research and advise on crypto storage services. Santander Private Banking International started offering custody and crypto trading services to high-net-worth customers at the start of 2024.
How to Purchase Bitcoin in Switzerland
This guide shows you three ways of buying Bitcoin while in Switzerland. They include:
Crypto Exchanges
Several well-known crypto exchanges have set up shops in Switzerland. They include Crypto.com., Kraken and Binance. Follow these steps to buy Bitcoin from any of the mentioned exchanges:
1. Select a cryptocurrency exchange. Crypto platforms offer varying user experiences. Some are beginner-friendly, while others only cater to advanced users. Therefore, if you are a beginner, we recommend picking a crypto exchange with an easy-to-understand user interface.
2. Create a trading account. The process of setting up an account involves entering your email, providing a unique password, and completing the Know Your Customer checks.
3. Fund your trading account. The exchange will allow you to deposit funds after verifying your identity. Many platforms support common payment methods like debit/credit cards and bank transfers.
4. Place a buy order. To purchase Bitcoin, you need to place an order in the spot market. You can buy BTC using the limit or market order types. As a beginner, choose the market order type so your buy order can be filled almost instantly.
5. Store your Bitcoin. After buying Bitcoin, it will be displayed in your exchange account. For extra security, it is advisable to transfer it to a non-custodial wallet.
Bitcoin ATMs
There are over 120 Bitcoin ATMs in Switzerland. You can buy Bitcoin using these ATMs by depositing cash, choosing BTC, and entering the wallet address for receiving the coins.
Peer-to-Peer Platforms
These platforms allow crypto users to trade directly with each other. Remitano and Paxful are two of the most used peer-to-peer (P2P) platforms in Switzerland. To buy Bitcoin from a P2P platform, you first need to set up and verify an account. After that, go to the “Buy” section and select BTC and your preferred seller. Next, place a buy order by making payments using the supported payment method. Once the seller receives funds, they will instruct the P2P platform to transfer the purchased Bitcoin to your account.
And that’s it. You are now a Bitcoin holder in Switzerland. Congratulations!