Swiss sanctions and crypto assets services: When can providers refuse instructions?
Swiss sanctions and crypto assets services: When can providers refuse…
<p>In two decisions of 28 April 2026 (4A_535/2025 and 4A_537/2025), the Swiss Federal Supreme Court addressed the application of Switzerland's sanctions asset freeze regime to crypto assets held with a Swiss provider of crypto asset brokerage and custody services. The Court confirmed that, where concrete indications give rise to the suspicion that crypto assets may be owned or directly or indirectly controlled by a sanctioned person, the service provider may validly refuse to execute client instructions to release or transfer those assets.</p>
<p>The decisions clarify the interaction between the service provider’s public-law obligations under the Swiss sanctions framework and its contractual duties towards the client. They also raise practical questions specific to the custody of digital assets, in particular where access to the assets depends on wallets, private keys or custody infrastructure.</p>