Swiss Regulator FINMA Issues Guidance on Stablecoin Issuers, Urges Identity Verification

Jul 28, 2024, 07:58 PM

On July 26, Swiss financial regulator FINMA issued new guidance urging stablecoin issuers to verify the identity of all token holders. The guidance aims to address risks associated with stablecoins pegged to fiat currencies, including potential threats to the Swiss financial reputation and risks posed to issuing banks by default guarantees. The guidance effectively prohibits non-decentralized stablecoins in Switzerland. FINMA's actions reflect growing regulatory scrutiny on digital assets and their impact on financial stability. The guidance also highlights concerns related to anti-money laundering (AML) compliance.