Peach Bitcoin, a Swiss peer-to-peer bitcoin trading platform, is temporarily changing the way its marketplace operates as Swiss regulators reconsider the compliance framework that allowed the company to offer bitcoin trading without traditional know-your-customer (KYC) checks.

The company said the change will take effect on September 1, 2026, while it appeals the regulatory decision. During this period, Peach will pause its current escrow-based model and operate without custody of bitcoin in the trading process.

Peach has offered its peer-to-peer service since 2022. Unlike a traditional exchange, the platform connects buyers and sellers directly. The company says users control their own bitcoin, while its escrow system has been designed to help protect both sides of a transaction.

Peach Bitcoin uses a 2-of-2 multisignature escrow system, meaning that neither the buyer, the seller, nor Peach can access or move the funds on their own. The seller holds one signature, while Peach holds the other.

Once the buyer sends the fiat payment to the seller’s account and the seller confirms receipt, both the seller and Peach sign the transaction. This releases the bitcoin from escrow and sends it to the buyer.

This means that Peach never holds or has access to the funds belonging to either party at any stage of the transaction.

Nevertheless, the dispute centers on whether Peach's existing compliance structure still meets Swiss anti-money-laundering requirements.

According to Peach founder and CEO @proofofsteph, the company received a letter from a regulator last month saying that its previous compliance agreement should be reconsidered.

Peach says the original framework was accepted in 2022 and allowed the company to operate a KYC-free marketplace subject to trading limits and other controls. The company also says it successfully passed independent audits in 2023, 2024 and 2025.

Peach argues that its model is different from a conventional custodial exchange. In its explanation, the company says trades are directly between two users and that the escrow mechanism is mainly a technical tool designed to make transactions safer.

It says the bitcoin involved in a trade is controlled through predetermined transaction conditions rather than being freely held by Peach.

The company has said it intends to challenge the regulator's position rather than immediately abandon its no-KYC model. At the same time, Peach says it will comply with the final decision if its appeal is unsuccessful.

For users, the temporary system will bring some significant changes.

During the appeal period, not everyone will be able to create a bitcoin sell offer. According to Peach, sellers will need to have completed KYC, been manually approved, or have a qualifying transaction history.

According to the company’s announcement, only the following users can create sell orders:

Buying bitcoin will remain available more broadly, but with additional limits. Peach says purchases will be capped at 500 Swiss francs (~616 USD) per transaction, while the maximum premium will be 6%.

The platform will continue to provide its in-app dispute resolution, but its escrow system will temporarily be unavailable. The company will continue charging its 2% fee on completed transactions.

The regulatory dispute comes at a time when Swiss authorities are paying close attention to digital asset businesses and their anti-money-laundering controls.

Switzerland has generally developed a reputation as a Bitcoin-friendly financial center, but companies operating in the sector remain subject to detailed rules covering customer identification, transaction monitoring and the handling of digital assets.

The Swiss Financial Market Supervisory Authority, or FINMA, has repeatedly highlighted money-laundering risks in the digital asset sector.

In 2022, FINMA said Swiss rules requiring information to be exchanged in payment transactions also apply to blockchain-based transactions. It has also issued separate guidance on the risks involved in holding digital assets for customers.

That makes Peach's case notable beyond the company itself. The platform has built its business around the idea that people can trade bitcoin directly while retaining control of their funds and, where legally permitted, without providing identity documents.

Peach currently describes itself as a Swiss-licensed financial service provider and a member of the PolyReg self-regulatory organization.

The immediate impact is therefore likely to be a more restricted Peach marketplace rather than a complete shutdown. The company says the new arrangement is temporary and will remain in place while its appeal is considered.