Blockchain Makes Money Laundering Risks Greater, Says Swiss Regulator
Adrian Zmudzinski's original article for cointelegraph.com reduced by 76%
The Swiss Financial Market Supervisory Authority warned the country that Switzerland is particularly prone to money laundering risks for reasons including the use of blockchain technology. In its first-ever yearly risk monitor report - published by FINMA on Dec. 10 - the regulator warns that blockchain and crypto assets exacerbate the country's already existing money laundering risks.
"In addition to traditional money-laundering risks, the financial industry also faces new risks in the area of blockchain technology and the cryptoassets that are attracting growing interest from clients." The regulator admits that, while these new technologies promise efficiency improvements in the financial industry, they also increase the threats of money laundering and terrorism financing. Other than blockchain, FINMA also noted Switzerland's status as a private wealth management hub as a contributor to the high risk of money laundering in the country. As Cointelegraph reported, a recent joint statement adopted by the Council of the European Union and the European Commission reads that no global stablecoin project will begin operation in the EU until the perceived risks like money laundering and tax evasion are addressed.
At the end of November, cryptocurrency exchange BitBay will delist privacy-centric cryptocurrency Monero due to money laundering concerns.
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