The Swiss Financial Market Supervisory Authority – FINMA – is introducing new rules and will require local providers of digital asset services to take further steps to prevent crimes committed through cryptocurrencies. The regulator also focused on BTC ATMs, believing that drug dealers often use these machines.
FINMA introduces new rules to prevent criminal use
According to a report by the Finews, the Swiss financial regulator – the Swiss Financial Market Supervisory Authority, or FINMA – wants to closely monitor local cryptocurrency service providers to try to curb money laundering.
Swiss platforms and digital asset brokers would need to step up their monitoring efforts to see if suspicious entities are using cryptocurrencies. The Bern-based regulatory authority considers the initiative to be urgent and necessary, stressing that criminals also use this asset class to finance terrorist acts.
FINMA also turned its attention to BTC machines. According to the regulator, drug traffickers often use ATMs as payment systems. It is worth noting that Switzerland is a relatively small nation, but its 130 cryptocurrency ATMs rank it sixth among the countries with the largest number of facilities.
FINMA also approved an anti-money laundering measure, lowering the threshold for purchases of cryptocurrencies without the need for identification from 5,000 Swiss francs to 1,000 CHF (approximately $ 1,080). In other words, all financial providers dealing with digital assets must collect data on anyone who initiates transactions that exceed this amount.
UBS: Cryptocurrency regulation could cause problems
One of the leading Swiss banks – UBS – recently shared its views on the current topic of digital asset regulation and stated that the implementation of certain rules may have a negative impact on the market.
The bank also warned its customers that regulatory interventions could affect overvalued cryptocurrencies and burst the bubble. The Swiss bank has also described the asset class as speculative and warns that it could be dangerous for professional investors:
“While we cannot rule out future price gains for cryptocurrencies, we see it as a speculative market that poses significant risks for professional investors.”
On the other hand, as the cryptocurrency market grew in early May, UBS had a different approach. At the time, it intended to enable its clients to acquire digital assets through third-party services this year.