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Switzerland Considers Imposing AML Rules On Crypto Providers

Switzerland considers imposing AML rules on its crypto providers as the FINMA requires all of the crypto providers to step up their game and to monitor whether criminals are using digital assets in illicit transactions so let’s read more in our latest crypto news today. The Swiss Financial Market Supervisory Authority- FINMA will require local […]

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Switzerland considers imposing AML rules on its crypto providers as the FINMA requires all of the crypto providers to step up their game and to monitor whether criminals are using digital assets in illicit transactions so let’s read more in our latest crypto news today.
The Swiss Financial Market Supervisory Authority- FINMA will require local digital asset providers to follow new rules and prevent criminals from using crypto. The regulator also turned its sight towards BTC ATMs as they believe that the drug dealers often use these machines. As per the reports, Switzerland considers imposing AML rules that will supervise local crypto providers as an attempt to clamp down on all illicit money laundering transactions.

Swiss platforms and brokers that are dealing with the digital asses will have to enhance their monitoring efforts and see if bad actors are using crypto. The watchdog believes that the initaitive is necessary, stressing that criminals use the asset class to fund terroristic acts. FINNA also turned its attention towards BTC automated teller machines and according to the regulator, the drug dealers use these ATMs as payment systems. It is worth noting that Switzerland is a relatively small country but it has 130 BTC ATMs and it is the sixth place in the world for countries with the most machines.
FINMA passed an anti-money laundering provision that lowered the threshold for unidentified crypto purchases from 5000 Swiss francs to 1000 francs or in other words, teh providers dealing with these assets have to collect some data on anyone that is initiating transactions that surpass this amount. One of the leading banks in Switzerland, UBS, shared its views on the hot topic of digital asset regulations as it indicated that implementing these rules could negatively impact the market. The bank even warned that teh regulatory crackdowns can pop the bubble markets while labeling crypto as an speculative asset class, alerting that it could be dangerous for the 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.”

When the crypto market was booming at the start of May, UBS demonstrated a different attitude and intended to enable its richer customers to receive digital asset exposure through third-party vehicles.