Swiss regulator FINMA targets stablecoin issuers in new proposal
As stablecoins continue to gain traction globally, regulatory initiatives such as FINMA’s guidance are likely to influence policies in other jurisdictions.
In a move aimed at bolstering regulatory oversight and mitigating financial risks, the Swiss Financial Market Supervisory Authority (FINMA) has proposed new guidelines for stablecoin issuers. The proposal comes amid growing concerns over the potential impact of stablecoins on regulated institutions and the broader financial ecosystem.
According to a recent guidance document, FINMA seeks to classify stablecoin issuers as financial intermediaries, highlighting the increased risks associated with money laundering, terror funding, and sanctions evasion linked to these digital assets.
Stablecoins, digital assets linked to traditional currencies or other assets to maintain a stable value, have experienced increased adoption. However, their rapid growth has also prompted regulatory concerns globally due to potential misuse for illicit activities.
Go to Source
Author: Amaka Nwaokocha
