Altcoin News: Swiss Regulator Introduced New Requirements for Blockchain Companies

August 26, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The Swiss Financial Market Supervisory Authority (FINMA) has published new guidance for blockchain payments in its jurisdiction. They apply to blockchain service providers, including exchanges, custodian services and trading platforms.

FINMA notes that the document was developed in accordance with the recommendations issued in June on the regulation of the digital assets of the Financial Action Task Force on Money Laundering (FATF).

The regulator emphasizes that companies in the field of blockchain cannot evade compliance with applicable legal standards related, for example, to combating money laundering. Moreover, in his opinion, such risks are especially relevant for the blockchain industry due to the presence in it of mechanisms for pseudonymous transactions.

Blockchain service providers should identify customers, take a risk-based approach to monitor their business relationships and notify the Anti-Money Laundering Committee of any suspicious activity on their platforms.

At the same time, the requirements for the transfer of customer information to blockchain companies must be observed to the same extent as banks. Regular communication channels can be used to transmit information.

FINMA emphasizes that it deviates from the recommendations of the FATF, as it refuses to include payments made using unregulated wallet services in the list of exceptions.

In its publication, FINMA notes that at present there are no national or international systems that could ensure reliable transfer of information about payments made using the blockchain. In addition, individual service providers have not yet had time to conclude bilateral agreements for the transfer of information. When such mechanisms appear, their use will become mandatory for participants in the cryptocurrency industry.

Also today it became known that FINMA has issued banking licenses and licenses for securities dealers to blockchain companies SEBA Crypto AG and Sygnum. The regulator noted that for companies whose activities are fully related to the blockchain industry, such licenses were issued for the first time. They will enable SEBA Crypto AG and Sygnum to provide services to institutional and professional clients.

Author: Marko Vidrih