Switzerland Tightens the Reins on Stablecoins
Switzerland’s financial watchdog, FINMA, has taken a step towards regulating the rapidly growing stablecoin market. They’ve released new guidelines that classify stablecoin issuers as financial intermediaries, meaning they’ll be subject to stricter rules.
New Rules for Stablecoin Issuers
These new guidelines aim to increase oversight and reduce financial risks associated with stablecoins. Here’s what’s changing:
- AML Compliance: Stablecoin issuers must comply with Anti-Money Laundering (AML) obligations, just like traditional financial institutions. This includes verifying the identity of holders and identifying beneficial owners to prevent illicit activities like money laundering and terrorism financing.
- Banking License Requirements: The guidelines outline conditions under which stablecoin issuers can operate without a full banking license. This includes having a bank guarantee in case of default and meeting minimum requirements for default guarantees.
A Move Towards Transparency
This move by FINMA is a step towards creating a more transparent and secure environment for stablecoin operations in Switzerland. While these new regulations don’t provide the same level of security as a full banking license, they are a significant step forward in protecting investors and ensuring responsible growth in the stablecoin sector.
The stablecoin market is booming, and regulators around the world are paying attention. 🌎 FINMA’s approach to stablecoin regulation could provide a model for other countries as they grapple with how to best oversee this rapidly evolving asset class.
