Controversial Cryptocurrency Decision To Be Implemented Despite Reactions In Switzerland!

Swiss financial regulator, despite significant backlash from users in the country cryptocurrency Expands money laundering controls for transactions.

The 1,000 Swiss Franc ($1,000) threshold, where customers will have to prove their identity, will now apply to all linked transactions where cryptocurrency is exchanged for cash or another form of anonymous money.

Swiss Financial Market Supervisory Authority Makes Statement on Cryptocurrency Rule

The following statements were used in a report published by the Swiss Financial Market Supervisory Authority (Finma):

“Virtual currencies are often used as a means of payment in illicit trade, especially drug trafficking, on the darknet, or in ransom payments after cyber attacks.

Money laundering risk in the virtual currency space is reinforced by the potential anonymity and speed and cross-border nature of transactions.”

An opinion published by Finma in May recommended tightening the currently set 1,000 francs limit per day to stop smurfing, which means splitting a large payment into smaller payments to avoid money laundering controls.

However, the regulator said the new rules were not neutral between different technologies and customer data stores would be vulnerable to hacking. bitcoin and received numerous responses from the cryptocurrency company.

Finma said today it “stands behind” its plans, rejecting requests to raise the threshold to 25,000 francs, but conceding that the new rules will only need to be applied to anonymous transactions like crypto ATMs.

Switzerland has been trying to position itself as a crypto hub in previous developments.

*Not investment advice.