Switzerland has always been famous for a business climate that’s both favorable and convenient. Hundreds of crypto companies have already been attracted to this honeypot, but Switzerland is now expanding on its financial regulatory framework. Some of the rules that are up and coming will see an increase in the oversight levels within the blockchain industry. These new regulations will comply with the newly created international standards when it comes to operating with cryptocurrencies.
Increasing Eyes On Transactors
The regulatory update will also feature the Swiss Financial Market Supervisory Authority, or Finma, proposing new regulation changes themselves. These proposed changes focus on the threshold values that it had established in its Anti-Money Laundering Ordinance. As it stands now, Finma is planning to lower the limit on the amount a single transaction requires for user verification.
As it stands now, sales below 5,000 Swiss Francs need no user verification, but Finma plans on lowering it to 1,000 Francs. Converted, the maximum verification-free transaction would be a little bit over $1000.
The official reasoning for this is that Finma formally recognizes the increased risks in money laundering within cryptocurrency exchanges. Even so, many businesses will not be pleased with its development since it will inevitably cost them their customers, in the long run.
Changing Laws Mandating Further Change
These amendments come as a result of Switzerland implementing a new Financial Institutions Act, as well as a Financial Services Act. Both of these bills passed in the Swiss Parliament almost two years ago, in June of 2018. Through a meeting that happened back in November of 2019, the Federal Council concluded that these bills needed to enter in force on the 1st of January, 2020. The Federal Council holds executive power about the matter, so there was no room for debate.
With the two laws now being implemented, Finma is mandated to adopt various implementing provisions. These provisions are more technical for the most part, according to the announcement Finma had done on Friday.
More Changes To Come
As the press release states, Finma was preparing amendments for other circulars and ordinances, as well. The plan is now to abolish three circulars, having become redundant thanks to the adoption of the new regulations. These changes will soon be put forward for public consultation, with Finma itself speculating that it will happen within the next few months. Global adoption and regulation at its finest.