Switzerland to Impose Anti-Money Laundering Rules on Crypto Providers: Report

According to FINMA, the Swiss Financial Market Supervisory Authority would require digital asset providers in their local areas to take extra measures to prevent criminals from using cryptocurrencies. Because of the high number of drug dealers using these ATMs, the watchdog will also be looking at bitcoin ATMs.

FINMA targets criminals operating with crypto

Finews reports that Switzerland’s financial regulator, the Swiss Financial Market Supervisory Authority (or simply FINMA) would closely monitor local crypto providers in an effort to reduce money-laundering.

Swiss brokers and platforms that deal with digital assets will need to increase their surveillance efforts and monitor for bad actors using cryptocurrencies. The Bern-based watchdog says the initiative is “urgently needed” and stresses that criminals can use the asset class to finance terrorism.

FINMA has also begun to pay attention to bitcoin automated teller machines. The regulator stated that drug dealers often use these ATMs as payment systems. While Switzerland is small, its 130 Bitcoin-automated teller machines rank it sixth among countries with the most stations.

FINMA also adopted an anti-money laundering clause, which lowered the threshold to purchase unidentified crypto from 5,000 Swiss Francs to 1,000 Swiss Francs (around $1.080). In other words, any financial provider dealing with digital assets must collect data about anyone who initiates transactions exceeding this amount.

UBS: Crypto Regulations Could Cause Trouble

UBS, one of Switzerland’s leading banks, recently spoke out on the topic of digital asset regulation. It indicated that certain rules could have a negative impact on the market.

The bank also warned customers that “bubble-like crypto markets” could be popped by regulatory crackdowns. The Swiss bank also called the asset class “speculative”, warning that it could pose a danger to professional investors.

“We can’t predict future price gains in cryptos but we view this market as a speculative one that presents significant risks for professional investors.”

UBS had a different approach to the crypto market boom at the start of May. It had originally planned to allow its wealthy customers digital asset exposure in 2021 via third-party vehicles.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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