Swiss Regulator Finma Proposes Lowering Client Identification Limit

Swiss Regulator Finma Proposes Lowering Client Identification Limit

Swiss Regulator Finma has proposed lowering client identification limit set in its Anti-Money Laundering Ordinance.

The Swiss Financial Market Supervisory Authority aims to decrease the threshold for crypto transactions which require user identification from 5,000 to 1,000 Swiss francs.

The market regulator stated that it recognizes the increased risks of money laundering in this area. Therefore, it proposed lowering client identification limit.

“However, the measure may not be to the liking of many crypto businesses operating in the country and their privacy sensitive customers.”

Thus, the amendments came in light of the Swiss government’s Financial Services and Financial Institutions Acts which have been passed by the parliament in June 2018.

In November 2019, the Federal Council, which is the executive body in the country, approved to enforce the laws on 1 January 2020.

Under the new regulations, Swiss market regulator Finma will implement different provisions what are mainly of a technical nature.

The market watchdog has established a new Financial Institutions Ordinance which reads:

“Finma regulates the details of professional indemnity insurance for portfolio managers, trustees and managers of collective assets. It also regulates details on calculating the de minimis threshold for gaining authorization as a portfolio manager.”

However, it seems that Switzerland is not the only country to implement the new global measures regulating cryptocurrencies adopted by the Financial Action Task Force (FATF) in 2019.

FATF’s guidelines state that crypto exchanges should verify customers who transfer cryptocurrencies worth more than € 1,000 ($1,000).

Will Swiss Banks Enter Bitcoin Era?

Cryptolydian earlier that Swiss banks are known for preserving customer wealth. This led some bankers to believe that the local banking sector is qualified for investment in Bitcoin.

Swiss bankers discussed the possibility of expanding in the adoption of cryptocurrencies as well as offering crypto services.

Accordingly, SEBA has announced that it plans to raise nearly CHF 100 million ($103.4 million) in capital from new investors. The move aims to offer crypto services to customers.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.