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Switzerland expands AML regulations around crypto

The Paypers

The Swiss Financial Market Supervisory Authority (FINMA) has issued an anti-money laundering (AML) ordinance that enforces identity checks for reporting certain cryptocurrency transactions.

According to Cointelegraph, through a notice issued on 2 November 2022, the Switzerland financial regulator stated that it would initiate a threshold of 1,000 Swiss francs for transactions of virtual currencies to cash or other forms of payment. FINMA data indicated that the regulator made adjustments on the basis of the country’s AntI Money Laundering Act and its government’s Anti-Money Laundering Ordinance. 

FINMA officials explained that they received numerous responses concerning the specification of the threshold for transactions with virtual currencies. In view of the risks and recent instances of abuse, FINMA stands by the rule that technical measures are needed to prevent the threshold of CHF 1000 from being exceeded for linked transactions within thirty days.

Cointelegraph reportedly has noted that FINMA enforces a reporting threshold for unidentified digital currency transactions from CHF 5,000 (USD 4,944) to 1,000 (USD 988) in January 2020, with regard to reported increase in cryptocurrency-based money-laundering regulations. It is believed that FINMA will increase the adjusted ordinance and regulations, which are expected to go into effect in January 2023.