The Swiss FINMA (Financial Market Supervisory Authority) has released the guidelines on for Blockchain payments. The rules will apply to every blockchain service such as exchanges, wallet providers and trading platforms.

The guideline shows how the rules will apply to financial services providers under FINMA supervision in the area of blockchain technology. The guidelines provide information about the technology-neutral application of the regulation to payment transactions on the blockchain. The institutions which come under the supervision of FINMA can only send cryptocurrencies or other tokens to external wallets. These wallets must belong to their own customers with a verifiable identity. The institutions can only receive cryptocurrencies or tokens from such customers. Thus, the institutions under FINMA supervision cannot send tokens to other institutions or receive any from them.

Thus, Blockchain service providers will have to conduct Know Your Customer checks and follow a risk-based approach to monitor their business relationships. Also, they need to notify the Money Laundering Reporting Office Switzerland if they suspect any suspicious activity on their platforms.

Switzerland is gradually becoming a blockchain and cryptocurrency haven in Europe. The Swiss FINMA has approved banking licenses for two blockchain service providers, Sygnum and Seba. The two companies are currently registered in Zug and Zurich respectively. Thus, the two firms now have the mandate to offer services for institutional and professional customers as per the source.