Recently, FINMA (Swiss Financial Market Supervisory Authority) presented a new set of guidelines aimed at stablecoin issuers (such as Tether USDT, for example).
According to these new guidelines, stablecoin issuers will be classified as financial intermediaries and must adhere to the same anti-money laundering (AML) and counter-terrorism financing standards that apply to traditional financial institutions.
The new rules aim to adopt certain principles common to legislations from other countries and mainly provide for:
- Compliance obligations: Stablecoin issuers will be required to verify the identity of their clients, monitor suspicious transactions, and report potentially illegal activities. This initiative was taken to mitigate the risks associated with the illicit use of stablecoins, which may include money laundering, terrorist financing, and other forms of financial crime.
- Investor protection: FINMA emphasized the importance of ensuring that funds held in stablecoins are adequately backed by real resources. Issuers will be required to provide periodic proof demonstrating the complete coverage of stablecoins in circulation and maintain total transparency regarding their reserves.
- Continuous monitoring: FINMA also introduced a continuous monitoring system to oversee the behavior of stablecoin issuers. The goal is to quickly identify any anomalies and intervene promptly to protect investor interests and the stability of the financial market.
The measures adopted by FINMA are part of a broader context of increased regulation of cryptocurrencies worldwide. In the United States, for example, the SEC has intensified its efforts to regulate token offerings and cryptocurrency exchange platforms.
FINMA reaffirmed the importance of international collaboration in regulating cryptocurrency markets. It is essential that regulatory authorities work together to create a consistent and effective regulatory framework. FINMA has actively participated in various international forums, sharing best practices and collaborating with other regulatory authorities.
Market Implications
Market operators will need to quickly adapt to the new regulations by implementing robust compliance systems and ensuring greater transparency in their operations. This could lead to additional costs for issuers, but it will also contribute to creating a safer and more reliable market environment for investors.
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A clear and well-defined regulatory framework can help reassure investors and stimulate growth in the stablecoin market in Switzerland.
The new guidelines from FINMA represent an important step toward creating a safer and more transparent stablecoin market in Switzerland.
