MLL Legal is a leading Swiss law firm with a history that dates back to 1885. It is one of the largest commercial law firms in Switzerland, with 155 lawyers in four offices in Switzerland, as well as two abroad – in London and Madrid – serving clients seeking Swiss law advice. The firm has a strong international profile and brings together recognised leadership and expertise in all areas of law affecting commerce today, with a particular focus on high-tech, innovative and regulated sectors.

Dr Reto Luthiger is a Partner with the firm and Co-head of MLL Legal’s Regulatory, FinTech & DLT practice group, as well as its Insurance and Compliance & Internal Investigations industry groups.

He advises and represents domestic and international traditional finance, FinTech and crypto clients in financial markets regulatory and civil law matters, as well as proceedings before Swiss regulator FINMA, self-regulatory organisations (SROs), supervisory organisations (SOs) and other authorities and courts.

Dr Luthiger has recognised expertise in financial market regulations, FinTech and blockchain, and possesses wide-ranging experience in banking, anti-money laundering, financial services and instruments, securities regulations, capital markets, financial markets infrastructure and collective investment schemes law.

In addition, he acts as CEO of the Self-Regulatory Organization of Swiss Association of Investment Companies (SRO SAIC), and serves as member of the board of Global Blockchain Business Council (GBBC) and SR Saphirstein AG (fiat24), holding a FinTech licence from FINMA. He is also Co-head of the Swiss Crypto Valley Association’s (CVA) regulatory working group.

He wrote his PhD-thesis on the area of AML, which was awarded with the Professor Walther Hug prize, and co-authored a commentary on the Swiss Financial Services Act/Swiss Financial Institutions Act, as well as another concerning the Swiss Financial Market Infrastructure Act/Book-Entry Securities Act. Dr Luthiger is known for his sound knowledge – particularly in matters of banking, AML, securities, FinTech, DLT/blockchain, FATCA, CRS and CARF, as well as corporate law.

Being a full-service, international and top-ranked law firm specialised in highly regulated, technology-intensive and IP-rich industries, we are used to offering an integrated and holistic approach for all client types with all sorts of requirements. In particular, we are used to serving startups, including crypto and FinTech clients, who have bespoke needs and expectations that are different to those of more traditional players.

I primarily serve startup clients who require multi-disciplinary legal work in the FinTech and crypto space via one integrated point of entry, with an emphasis on financial regulatory work, often encompassing (complex) structuring work, incorporations, commercial/contracts law, tax, as well as immigration. Conversely, my client base also includes more traditional, well-established players, who are looking for highly specialised AML or regulatory advice.

Law firms are losing more and more standardised work and are engaged mainly in highly complex matters, which is fascinating; however, the workload reduces over time, and it is becoming much more difficult to train the next generation of legal practitioners. AI and other data technologies accelerate this process even faster, and so we need to find ways of ensuring sufficient work while also training future lawyers.

As a leading law firm also specialised in technology, we try to overcome these issues at least partly by investing in – and implementing – the latest technology in our own systems. We recently introduced a new IT system and further implemented Microsoft Copilot into our business IT framework. Meanwhile, we were one of the first Swiss law firms to develop a tool for automated documents, and we are currently in the final stages of developing PACTIS – a legal tech tool for SMEs and their advisers, which enables companies to handle their basic legal tasks competently, efficiently and as independently as possible. PACTIS offers intelligent automation of legal documents and digitisation of legal processes, as well as simplified access to legal know-how and legal experts who are on hand to assist with more specific and complex challenges.

In mid-2023, the Swiss crypto industry was at a pivotal juncture regarding the regulatory treatment of crypto staking. This process enables crypto holders to support the operational functionality of blockchain networks and, in return for providing validation services with correct and system-compliant behaviour, to receive a reward. Within this context, there was a central concern from the crypto industry regarding Swiss regulator FINMA’s proposition – which could be detrimental to the industry – wherein entities offering staking services may require a banking licence, since staked assets shall not be kept available for clients at all times in view of risk profiles and the unstaking period.

Following various interactions and discussions with the industry and supervised entities, to which I also contributed, FINMA finally published a clear approach in its recent FINMA Guidance 08/2023, entitled “Staking”, which is unique on a global scale and brings the Swiss crypto space to the forefront. This was a win-win outcome for all parties involved, though it demanded hard work, deep technological know-how, as well as creativity in arriving at solutions to finally get there.

From the client side, one of the highlights was a crypto client – with whom we developed a comprehensive tokenised structured products programme and established its corporate and contractual structures – which was finally able to launch its first products in 2023. This was challenging but extremely interesting work and is, from a human point of view, one of the best and most respectful client relationships I have experienced. I am so thankful to these clients, and I highly appreciate still being able to work with them.

I see several transformative impacts that FinTech could have on the banking & finance landscape going forward:

Enhanced Financial Inclusion
FinTech platforms can provide access to financial services to unbanked and underbanked populations. Mobile banking apps, microfinance and digital payment solutions can reach people in remote or underserved areas, facilitating financial inclusion and economic growth. This is particularly relevant for Switzerland, with its highly developed financial sector, which can leverage technology to serve broader demographics.

Improved Efficiency & Reduced Costs
Automation and digital processes in FinTech can significantly reduce operational costs and improve efficiency for financial institutions. Such technologies as AI and blockchain can streamline back-office operations, reduce errors and enhance transaction speeds. This can lead to more competitive pricing, as well as improved service offerings in the financial sector.

Increased Transparency & Security
Blockchain technology, a core component of FinTech, can provide greater transparency and security in financial transactions. By utilising immutable ledgers, financial institutions can reduce fraud, enhance auditability and increase trust in financial systems.

Disruption of Traditional Banking Models
FinTech startups are challenging traditional banking models by offering innovative and customer-centric financial products. Peer-to-peer (P2P) lending platforms, robo-advisers and neobanks provide alternatives to conventional banking services, often with lower fees and more flexible terms. This competition can drive traditional banks to innovate and improve their offerings.

Personalised Financial Services
Data analytics and AI enable FinTech companies to offer highly personalised financial services. By analysing customer data, FinTech firms can tailor products to individual needs, improving customer satisfaction and engagement. This can range from personalised investment advice to customised loan products.

Regulatory Technology (RegTech)
FinTech innovations are also transforming regulatory compliance through RegTech solutions. These technologies help financial institutions comply with regulations more efficiently and accurately by automating such processes as KYC (Know Your Customer), AML (Anti-Money Laundering) and transaction monitoring. This is particularly relevant in Switzerland, given the country’s robust regulatory framework.

Cross-Border Transactions & Global Reach
FinTech can simplify cross-border transactions and expand the global reach of financial services. Digital currencies, blockchain-based payment systems and international P2P lending platforms enable seamless international transactions with lower fees and faster processing times compared to traditional methods.

Switzerland has remained an attractive destination for foreign investment due to its economic stability, robust legal system, high-quality infrastructure and strategic location in Europe. Despite global economic challenges, Switzerland continues to draw significant foreign investment, ranking highly in terms of economic competitiveness and innovation.

In recent years, there has been notable activity in M&A involving foreign investors. For example, in 2022, there were more than 150 M&A transactions involving foreign buyers and Swiss targets, exceeding the record in 2021. Major transactions included UBS’s acquisition of Credit Suisse, which was a high-profile intervention to stabilise the banking sector.

Meanwhile, FDI in Switzerland showed a recovery in 2022, reaching USD 13.3 billion, a significant rebound from previous years wherein outflows were recorded (https://www.lloydsbanktrade.com/en/market-potential/switzerland/investment / https://unctad.org/publication/world-investment-report-2024). This trend continued in 2023, with Switzerland witnessing a 25% increase in investment projects, the highest level since 2011 (https://www.swissinfo.ch/eng/business/investment-projects-boom-in-switzerland/46683304).

Additionally, Switzerland’s regulatory environment remains favourable, with various cantons offering tax incentives to attract investment, despite some restrictions following EU criticisms. The country also ranks highly in global indices for business environment and economic freedom, further cementing its status as an attractive hub for foreign investments.

Overall, Switzerland’s combination of stability, innovation and strategic positioning continues to make it an appealing destination for foreign investors, even amid broader economic uncertainties.

We provide bespoke, cross-border advice to Swiss and international clients. Our multilingual team is highly capable of skillfully navigating differing cultures and market conditions. With unparalleled, international experience, we are experts at setting up and managing international projects expeditiously.

I have many personal connections with local counsels in many jurisdictions, with whom I have worked in the past and gathered experience. Indeed, every one of our more than 155 lawyers has a similar network potential available to them. Furthermore, MLL Legal is top-ranked and maintains a membership within the INTERLEX Group, an elite network of leading independent law firms connecting clients to lawyers with preeminent expertise in approximately 60 countries around the globe.

At the end of 2023, the Federal Council adopted the amendment to the Swiss Capital Adequacy Ordinance (CAO) for banks. This bill transposes the final Basel III standards espoused by the international Basel Committee on Banking Supervision (BCBS) into Swiss law. The amended CAO will enter into force on the 1st of January, 2025.

The Swiss Federal Council has initiated a consultation to amend the Financial Market Infrastructure Act (FinMIA). Key proposed changes include:

• Strengthening Financial Market Infrastructures: Enhancing capital requirements and recovery plans to prevent failures of systemically important entities, such as central counterparties;
• Derivatives Trading: Easing access for foreign supervisory authorities to Swiss trade repositories, as well as simplifying rules for small, non-financial counterparties;
• Market Abuse Prevention: Improving measures against insider trading and market manipulation, with expanded monitoring powers for FINMA.

Moreover, the Swiss Federal Council has proposed amendments to the Anti-Money Laundering Act (AMLA) alongside the draft Transparency Register Act. Key elements include:

• Federal Transparency Register: Introducing a non-public central register for beneficial owners of legal entities, managed by the Federal Department of Justice and Police;
• Expanded Due Diligence: Extending AML obligations to high-risk consultancy activities, particularly in legal and real estate sectors;
• Additional Measures: Lowering the threshold for cash payments in precious metals trading and applying AML rules to all cash transactions in real estate.

At the same time, the Federal government is working on the adaptation of the FinTech licence in the Swiss Banking Act so that one or two separate authorisations are created to appropriately cover payment service providers (including stablecoins), as well as crypto asset service providers (CASP).

Finally, the Federal Tax Administration is attending to the implementation of OECD’s Crypto Asset Reporting Framework, which is poised to come into force in Switzerland on the 1st of January, 2026.