Switzerland’s financial watchdog, FINMA, has unveiled a new proposal targeting stablecoin issuers, marking a significant step in regulating this burgeoning sector. The proposal aims to classify stablecoin issuers as financial intermediaries, subjecting them to the same stringent anti-money laundering (AML) requirements as traditional financial institutions. This includes mandatory verification of stablecoin holder identities and establishing the identities of beneficial owners.
FINMA’s move underscores growing concerns about the potential for money laundering and terrorist financing through stablecoins. The regulator believes that imposing stricter AML regulations can mitigate these risks and safeguard the integrity of the Swiss financial system.
Furthermore, the proposal addresses the issue of default guarantees, which some stablecoin issuers utilize to avoid obtaining a banking license. FINMA outlines specific conditions for stablecoin issuers relying on bank guarantees, ensuring adequate protection for depositors. These conditions include maintaining guarantee limits and enabling immediate claims in case of insolvency.
The new guidelines aim to strike a balance between fostering innovation in the stablecoin space and ensuring financial stability. While the proposal has been met with mixed reactions from the industry, it highlights the increasing global focus on regulating cryptocurrencies and their derivatives. As the stablecoin market continues to expand, regulatory frameworks like FINMA’s are likely to shape the future of this rapidly evolving sector.
