Swiss Regulator Issues Guidance on Stablecoins, Emphasizes Money Laundering and Reputational Risks

The Swiss regulator, the Financial Market Supervisory Authority (FINMA), recently issued guidance on stablecoins.FINMA highlights the increased money laundering risks associated with these digital assets.

In addition, the document also addresses the legal aspects of the financial markets related to stablecoin projects and their potential impact on regulated institutions.

FINMA emphasizes that stablecoins not only increase the risk of terrorist financing and sanctions evasion, but also pose a reputational risk for the Swiss financial center as a whole.

In order to mitigate these risks, the Swiss regulator proposes to categorize stablecoin issuers as financial intermediaries.