The Swiss Financial Market Supervisory Authority (FINMA) will compel local crypto businesses to take extra measures to prevent criminals from utilising cryptocurrency. The regulator will also focus on bitomats, which it thinks are often used by drug traffickers.
The Swiss financial market supervisory authority will keep a close eye on local cryptocurrency providers, according to a story in Finews. All of this is being done to cut out money laundering activities completely.
Platforms based in Switzerland will have to keep an eye out for criminals who use cryptocurrency. This asset type is being used by criminals to fund terrorist activities, according to the Bernese regulator.
Bitomats also became a focus of FINMA’s attention. The government claims that drug traffickers often use payment methods like this. It’s important to remember that Switzerland is a very tiny nation. Despite this, the country has 130 bitomats, which ranks it sixth in the world.
Additionally, the Financial Markets Authority (FINMA) enacted yet another anti-money laundering regulation. The barrier for unconfirmed cryptocurrency purchases has been reduced from 5,000 Swiss francs (CHF) to 1,000 Swiss francs (approximately $1,080). To put it another way, every financial service provider dealing with digital assets must collect data on anybody who starts a transaction above this limit.
Later, UBS(a Swiss central bank) has expressed its thoughts on digital asset legislation. In his view, putting in place new regulations might have a detrimental effect on the market.
It went on to say that regulatory intervention might lead the “bubble” to collapse. According to UBS, for experienced investors, cryptocurrency trading may be hazardous, which labelled it as “speculative.”
Regulators want to keep a tight grip on the crypto market
Blockchain technology has been a boon to the crypto space. It is now being used in a wide variety of applications, from crypto-mining to financial transactions. As the crypto market continues to grow, there is a growing need for regulation and control of the industry.
Regulators worldwide are trying to control the crypto market and prevent people from using it for illegal activities such as money laundering and terrorism financing. There are several regulations in place in different countries to regulate crypto markets.