Switzerland is a relatively small Alpine country mostly known for its mountains and banking sector. In 2021, Switzerland took a positive approach towards blockchain and crypto regulation and became one of the first countries in the world to enact legal regulations for blockchain technology - the Distributed Ledger Technology (DLT) Act. The organised blockchain environment emerged in the Swiss canton of Zug, also called a 'Switzerland's Crypto Valley', which has attracted a large number of blockchain projects by favourable tax regimes and crypto-friendly infrastructure. Swiss crypto companies are supervised by the lcoal regulator - the Swiss Financial Market Supervisory Authority (FINMA). 

According to the Swiss DLT Act, ledger-based securities, or cryptocurrencies, are subject to the same regulations as traditional securities, and therefore, can be legally exchanged, transferred and used for commercial activities in line with other asset classes like property or gold. 

FINMA has issued guidelines on how it classifies different types of tokens and cryptocurrencies, which are based on their characteristics and the rights they confer to their holders. According to these guidelines, there are three main types of tokens recognized in Switzerland:  

1. Payment tokens: these are tokens that are intended to be used as a means of payment and are interchangeable with other forms of money. Bitcoin (BTC) and Ethereum (ETH) are examples of payment tokens. They do not grant holders any rights to participate in a company's decision-making or to receive a share of its profits.  
2. Utility tokens: these are tokens that grant holders access to a specific application or service. They are not intended to be used as a means of payment and do not confer any rights to participate in a company's decision-making or to receive a share of its profits.  
3. Security tokens: these are tokens that represent an investment in an asset or a company, such as shares in a company, and can give rights to participate in a company's decision-making or to receive a share of its profits.   

• It is worth noting that these classifications are not set in stone and that the tokens can be classified differently based on the case and the rights they are giving. Also, the distinction between these types of tokens is not always clear-cut, and some tokens may exhibit characteristics of more than one category.    

The Switzerland Cryptocurrency License, also known as the Swiss Distributed Ledger Technology (DLT) license, is a license issued by the Swiss Financial Market Supervisory Authority (FINMA) that allows companies to legally operate in the cryptocurrency and blockchain space in Switzerland. This license is required for any company that wants to offer services related to payment tokens, such as trading, buying, and selling them. The license is also required for companies that want to issue new tokens, such as initial coin offerings (ICOs) or security token offerings (STOs).

To obtain a Swiss DLT license, a company must meet certain requirements set by FINMA. These requirements include having a proper organizational structure and adequate risk management systems in place, as well as conducting proper due diligence on their clients to prevent money laundering and terrorist financing. The company must also comply with all Swiss regulations and laws related to the financial industry, such as data protection and financial reporting.

The Swiss DLT license is intended to create a legal framework for the blockchain and cryptocurrency industry in Switzerland, in order to ensure the protection of investors and consumers, as well as promote innovation and growth in the sector. Obtaining a Swiss DLT license is a complex and demanding process, but it can give companies access to a highly reputable and stable financial market and provide a higher level of legal certainty for their activities.