Switzerland requires ID for Crypto Exchange transactions of more than $ 1K


The Swiss financial market regulator (FINMA) adopted an anti-money laundering provision on February February. 7. With reference to additional risk, the threshold for unidentified crypto exchange transactions is lowered from CHF 5,000 to CHF 1,000 (approximately $ 1,020 USD).

The provision comes after the entry into force of the new Financial Services Act and the Financial Institutions Act, which entered into force on January. 1. FINMA has introduced the revised regulation in response to these acts and will consult on the follow-up arrangement until 9 April.

One of the most important changes compared to the new provision is the standardization of Swiss national rules with the Financial Action Task Force or FATF guidelines from June 2019. The international body has imposed a maximum transaction limit of $ 1,000 for unidentified cryptocurrency exchange transactions .

All financial providers involved in cryptocurrencies will need to collect data on anyone who starts transactions for an amount of more than $ 1,000. The information must be regularly submitted to the authorities for assessment.

The initiative is part of a global trend that calls for stricter anti-money laundering regulations. By implementing the directive, FINMA recognizes “the increased money laundering risks” in cryptocurrency transactions, according to its press release.

The European Union has also implemented its Fifth Anti-Money Laundering Directive (5AMLD), which entered into force this year. The new regulation focuses specifically on some types of cryptocurrency transactions, which in particular requires strict reporting of customer information.

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Notes: 0Audience: 3146Registration: 11-07-2018


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