FINMA requires all cryptocurrency providers to step up their game and monitor for the usage of digital assets in illegal transactions by criminals.
According to reports, Switzerland’s Financial Market Supervisory Authority – FINMA – will force local digital asset providers to take further measures to prevent criminals from using cryptocurrencies. The watchdog would also focus on bitcoin ATMs, believing that drug dealers frequently utilize them.
FINMA Pursues Cryptocurrency Criminals
According to a Finews report, Switzerland’s financial regulator — the Swiss Financial Market Supervisory Authority, or FINMA for short – will closely monitor local cryptocurrency providers in an effort to crackdown on money laundering activities.
Swiss platforms and brokers dealing in digital assets would need to beef up their monitoring efforts and keep an eye out for instances when criminals use cryptocurrencies. The Bern-based watchdog believes the campaign is “critically required,” pointing out that criminals utilize the asset class to finance terrorism.
FINMA has also shifted its focus to bitcoin automated teller machines. According to the authority, such ATMs are routinely used as payment channels by drug dealers. Switzerland is a small country, but its 130 Bitcoin automated teller machines rank it sixth among countries with the most stations.
Additionally, FINMA adopted an anti-money laundering rule, lowering the bar for unidentified cryptocurrency purchases from 5,000 Swiss Francs (CHF) to 1,000 CHF (about $1,080). In other words, all financial institutions that deal with digital assets are required to gather data on anyone initiating transactions over this threshold.
UBS: Cryptocurrency Regulations Could Cause Confusion
UBS, one of Switzerland’s largest banks, recently revealed its opinions on the hot topic of digital asset legislation, indicating that the implementation of certain rules could have a negative influence on the market.
Additionally, the bank warned its customers that regulatory crackdowns might deflate the crypto markets’ “bubble-like” nature. Additionally, the Swiss bank classified the asset class as “speculative,” indicating that it could be risky for professional investors:
“While we can’t rule out future price gains in cryptos, we see this as a speculative market that poses significant risks to professional investors.”
On the other hand, when the cryptocurrency market was surging in early May, UBS took a different stance. It wanted to enable its rich customers to gain exposure to digital assets through third-party vehicles later in 2021.
Also Read: Money Laundering Rules for Crypto Providers in Switzerland
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