The Swiss government today published detailed guidance on the issuance of stablecoins, a type of digital asset backed 1:1 by reserve assets under the country's custodian laws.
Following the announcement on Friday, the Swiss Financial Market Supervisory Authority ( FINMA ) announced that stablecoins will be treated according to the same rules that applied to ICO offerings in 2019.
However, the regulator has updated the document to address its concerns about the risks associated with stablecoins and their growing use for money laundering, terrorist financing and sanctions circumvention. .
Anti-money laundering measures
Due to these concerns, the Swiss regulator requires all stablecoin issuers in the country to comply with its anti-money laundering laws.
The regulator said it took the decision after XEM an investigation conducted by the FATF in 2020.
During the investigation, authorities discovered that stablecoins pose many of the same potential money laundering and terrorist financing risks as other cryptocurrencies.
FINMA stated that mandating issuers' compliance with anti-money laundering rules is important to protect the interests of investors.
This is because companies often deploy Token as a trusted payment method on the blockchain , backed by national currencies.
For this reason, stablecoin holders often have payment claims against the issuer.
The regulator explained that the claim is handled in accordance with banking laws to ensure assets remain sound and are fully backed by reserves.
Request identity verification
In addition to regulatory compliance, FINMA requires stablecoin issuers to verify the identity of holders at all times.
The regulator said in a statement on Friday:
“In particular, the identity of all stablecoin holders must be fully verified by the issuer or suitably supervised financial intermediaries.”
The regulator mandates that all stablecoin issuers under its supervision need to implement measures such as contractual transfer restrictions, know-your-customer (KYC) protocols and audits. blockchain control.
The market watchdog believes that implementing these agreements will help ensure that stablecoins are not transferred or used by individuals or entities engaged in illegal activities.
Additionally, the implementation of these strict controls aims to enhance the security and reliability of stablecoins in Switzerland, making the digital asset more attractive to users and legitimate investors. France.
Embrace cryptocurrency innovation
Meanwhile, Switzerland is one of many countries around the world that is adopting a cryptocurrency initiative and opening its borders to this asset class.
Earlier this year in May, the Swiss government launched a public consultation to adopt internationally accepted standards for cryptocurrency taxation.
The European country plans to introduce rules on digital asset tax reporting to “ensure equal treatment” as traditional assets.
The move comes weeks after a cryptocurrency advocacy group based in Switzerland called on the country's central bank, the Swiss National Bank (SNB), to add Bitcoin ( BTC ) to its portfolio. its reserve assets.
Activists believe that adding Cryptoasset to the country's reserve portfolio will further cement its independence from the European Central Bank (ECB).
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