Swiss Financial Market Supervisory Authority highlights money laundering risks of digital assets and calls for strong regulation

Odaily News The Swiss Financial Market Supervisory Authority (FINMA) has listed digital assets as a high-risk area for money laundering in its latest risk monitoring report. The report highlights the vulnerability of digital assets, mentioning their use in financial crimes such as sanctions evasion, and the importance of strong regulatory oversight to mitigate these risks. The report states that cryptocurrencies, especially stablecoins, are increasingly linked to money laundering and other illegal activities, including being used for sanctions evasion and darknet transactions, which has heightened the concerns of financial regulators. "For digital assets, FINMA has taken institution-specific measures to reduce money laundering risks," the agency said. It is understood that Swiss financial intermediaries that provide crypto-related services are under closer scrutiny to manage these risks. FINMA added that inadequate risk mitigation measures in this area would endanger individual institutions and create reputational risks for the entire Swiss financial industry.