---
type: free_zone
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "europe", "fatf", "crypto_friendly"]
aliases: ["LUGANO", "CHE-LUG", "Lugano"]
created: 2026-04-13
updated: 2026-04-02
compile_into: ["[[country--switzerland]]"]
sources:
  - name: "FINMA"
    url: "https://www.finma.ch"
    type: "official"
  - name: "FINMA DLT Act"
    url: "https://www.finma.ch"
    type: "framework"
---

# 🇨🇭 Lugano (Crypto City) (LUGANO) — Crypto Regulation

> Switzerland, including Lugano as a crypto city, maintains a crypto-friendly regulatory environment under the supervision of FINMA. The regulatory framework includes the FINMA DLT Act, supporting innovation and proportional oversight.

## Overview

| Field | Value |
|-------|-------|
| Status | crypto_friendly |
| Sub-jurisdiction of | [[country--switzerland|Switzerland]] |
| Risk Score | 15/100 (Low Risk) |
| Enforcement Level | Low |
| Region | [[domain--europe|europe]] |
| Currency | [[entity--chf|CHF]] |

## Tax

| Type | Rate |
|------|------|
| VAT on Crypto | No |

The regulator page does not specify detailed tax rates or rules for cryptocurrencies.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--finma|FINMA]] |
| Framework | FINMA DLT Act |
| Ease | medium |
| Cost | N/A |
| Timeline | N/A months |

Licensing is required under the FINMA DLT Act with a proportional and risk-based approach to supervision.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| [[concept--fatf|FATF]] Member | No |
| FATF Status | fsrb_only |

## DeFi

**Status:** regulated

DeFi activities are regulated under the existing FINMA framework, ensuring compliance with AML and licensing requirements.

## Stablecoins

**Status:** regulated

Stablecoins are regulated under the FINMA framework with specific requirements for issuance and custody.

## NFTs

**Status:** no_rules

No specific NFT regulation; generally permitted

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.15/kWh |
| Renewable Energy | 30% |
| Climate | temperate |
| Infrastructure | excellent |

Mining is legal with moderate electricity costs and good infrastructure in a temperate climate.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | very_stable |
| Sanctions | No |
| Corruption Index | 85/100 |
| Ease of Business | very_easy |
| Internet Freedom | free |
| Banking Access | open |

## Enforcement

No significant enforcement actions reported; jurisdiction actively encourages crypto business

## CBDC Status: exploring

---

*Data source: [Soken Crypto Legal Map](https://soken.io/crypto-map/). Last reviewed: 2026-04-13.*

**Sources:**
- [FINMA](https://www.finma.ch)
- [FINMA DLT Act](https://www.finma.ch)