The Federal Financial Market Supervisory Authority (FINMA) is reportedly requiring local digital asset providers to take additional measures to prevent criminals from using cryptocurrencies. The watchdog would also turn its sight towards bitcoin ATMs as it believes that drug dealers often use these machines.
FINMA targets criminals using crypto
According to a Finews report, Switzerland’s financial regulator – the Federal Financial Market Supervisory Authority or simply FINMA – is closely monitoring local crypto providers in an attempt to crack down on money laundering transactions.
Swiss platforms and brokers dealing with digital assets would have to enhance their monitoring efforts and observe if bad actors employ cryptocurrencies. The Bern-based watchdog believes the initiative is “urgently needed”, stressing that criminals are using the same asset class to finance acts of terrorism.
FINMA also turned its attention towards bitcoin automated teller machines. According to the regulator, drug traffickers frequently use these ATMs as payment systems. It is worth noting that Switzerland is a relatively small nation, but its 130 Bitcoin automated teller machines place it in the sixth position among the countries with the most stations.
FINMA also adopted an anti-money laundering provision whereby it lowered the threshold for purchases of unidentified cryptos from 5,000 Swiss francs (CHF) to 1,000 CHF (approximately $ 1,080). Or, in other words, all financial providers dealing with digital assets have to collect data on anyone initiating transactions that exceed this amount.
UBS: crypto regulations could cause problems
One of Switzerland’s leading banks – UBS – recently shared its take on the hot topic of digital asset regulation, as it indicated that the implementation of certain rules could have a negative impact on the market.
Furthermore, the bank warned its customers that regulatory crackdowns can pop the “bubble-like” crypto markets. The Swiss bank also called the asset class “speculative”, warning that it could be dangerous for professional investors:
“While we can’t rule out future price gains in cryptos, we view this as a speculative market that presents significant risks for professional investors.”
On another note, though, when the cryptocurrency market was booming at the beginning of May, UBS demonstrated a different attitude. At the time, he intended to enable his high net worth clients to gain exposure to digital assets later in 2021 via third party vehicles.
