Cryptocurrency traders in Switzerland who are a fan of anonymity will not be happy to hear that exchanges must now collect ID and information from users signing up to their platforms. This is thanks to new regulation by the Swiss Financial Market Supervisory Authority (FINMA) that went live on February 7.
These regulations are the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA), according to a press release from the group.
However, it’s important to note that these exchanges must only survey those who transact over CHF 1000 on their platforms.
Of course, while enthusiasts are likely a fan of cryptocurrencies’ ability to move around money without being traced, per se, this new regulation eliminates that power and means that traders must reveal themselves due to anti-money-laundering (AML) and know-your-customer (KYC) policies.
That said, governments and regulators in power appreciate KYC and AML policies to limit the number of people who use cryptocurrencies to money launder or commit other illegal activities. This is happening to exchanges and other spaces around the world as well.
For example, Bitfinex has recently increased its KYC policies, now requiring those on the platform to provide a source of income. While it may seem contradictory to the philosophy behind Bitcoin and cryptocurrencies in general, it’s likely that these regulatory policies will also bring more people into the industry and lower the barrier of entry.