Switzerland’s FINMA Updates Money Laundering Rules, Tightens Crypto Transaction ID Requirements






Switzerland’s Financial Market Supervisory Authority (FINMA) has proposed new rules for cryptocurrency transactions, in response to what it called “heightened money-laundering risks.” The proposed change would lower the client identification threshold for cryptocurrency transactions on digital currency exchanges from 5,000 to 1,000 Swiss francs.

In a press release, FINMA noted that the proposed ordinance change is “mainly technical in nature” and required to comply with the new Financial Services Act and Financial Institutions Act. Both went into effect on January 1. To implement their provisions, FINMA has created a new ordinance for financial institutions and is amending other ordinances and circulars.

The cryptocurrency rule change will also bring Swiss rules into alignment with international standards set by the Financial Action Task Force (FATF) last year. Those directives require exchanges to mandate user identification for all digital currency transactions exceeding $1,000.  Financial service providers are required to collect identification information from all users making such transactions, and submit those records to the proper authorities on a regular basis.

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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