Cross-border dimensions
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Swiss creditors in Singapore proceedings
A Swiss creditor of a Singapore platform may prove in the Singapore liquidation or scheme without any Swiss proceeding. The proof is filed with the liquidator in the ordinary way, with the claim valued in Singapore dollars at the date of the winding-up order. A Swiss creditor with a proprietary claim should assert it early, by letter to the liquidator and if necessary by application to the court, because the liquidator will treat all balances as debts unless challenged. The Singapore moratorium under s 64 binds the Swiss creditor in respect of acts in Singapore. It does not prevent the Swiss creditor from attaching Swiss assets of the debtor in Switzerland, since Swiss courts do not give effect to a foreign restructuring moratorium without recognition under Art. 166 ff. PILA, which a s 64 moratorium does not obtain.
Singapore proceedings in Switzerland
Switzerland recognises a foreign bankruptcy decree, and since 2019 a foreign composition or similar proceeding, under Arts 166–175 PILA. The decree must have been issued in the state of the debtor's seat or of its centre of main interests, must be enforceable there and must not be contrary to Swiss public policy. Recognition opens a Swiss ancillary bankruptcy over the debtor's Swiss assets, unless the Swiss court dispenses with it because no privileged Swiss creditors exist. A Singapore liquidator who needs access to a Swiss bank account of the platform must take this route, which takes several months and involves the Swiss bankruptcy office. A Singapore scheme moratorium has no Swiss effect. A Singapore scheme itself is recognised only through the Art. 166 ff. route as a composition.1
Singapore recognition of Swiss proceedings
A Swiss bankruptcy of a Zug AG or GmbH with Singapore assets is recognised in Singapore under the Model Law as a foreign main proceeding if Switzerland is the centre of main interests, which for a Swiss-incorporated company is presumed. The Swiss bankruptcy office or a court-appointed administrator qualifies as a foreign representative. Recognition brings a stay and allows the foreign representative to take control of Singapore assets, including tokens at Singapore exchanges, by application to the court.2 The FINMA-ordered liquidation of an unlicensed Swiss crypto firm under Art. 37 FINMASA qualifies as a foreign proceeding for these purposes, because it is a collective proceeding under the supervision of a public authority, although no Singapore decision has yet addressed a FINMA liquidation.
| Issue | Singapore | Switzerland |
|---|---|---|
| Customer tokens in custodian's bankruptcy | Trust analysis on terms of service; regulatory segregation for licensees since 2023 | Statutory segregation right Art. 242a DEBA; Art. 16 BankA for banks |
| Debtor-in-possession moratorium | s 64 IRDA, days, conditions on disclosure | Composition moratorium Art. 293 ff. DEBA, with administrator |
| Displacing management | Judicial management (Part 7 IRDA) | Bankruptcy; FINMA liquidation for licensees |
| Recognition of other hub's proceeding | Model Law, Third Schedule IRDA | Arts 166 ff. PILA, ancillary bankruptcy |
| Effect of moratorium abroad | None in Switzerland | None in Singapore |
| Scheme / composition binding dissenters | 75 % in value, majority in number, per class | Composition agreement Art. 305 DEBA majorities |
| Distribution in kind of tokens | Permitted in schemes; practised | Segregation in kind under Art. 242a; otherwise realisation |
| Court specialisation | Single judge handled all 2022–2023 cases | Cantonal bankruptcy courts; FINMA for licensees |
Notes
- Swiss Private International Law Act (PILA; IPRG), SR 291, Arts 166–175, as amended with effect from 1 January 2019. ↩
- Insolvency, Restructuring and Dissolution Act 2018, Third Schedule, Arts 15–21 of the Model Law as enacted. ↩
For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of October 2026.