Switzerland’s Financial Regulator Tightens Rules for Crypto Transactions

The Swiss Financial Market Supervisory Authority (FINMA) has announced an extension of its Anti-Money Laundering (AML) ordinance, reinforcing identity verification requirements for certain cryptocurrency transactions.

In a notice published on Nov. 2, FINMA confirmed its commitment to enforcing a transaction threshold of 1,000 Swiss francs (approximately $997). The rule applies to transactions involving virtual currencies exchanged for cash or other anonymous payment methods. The updated regulation aligns with Switzerland’s broader Anti-Money Laundering Act and its government’s AML Ordinance.

Strengthening AML Measures

FINMA reported receiving significant feedback on the decision to lower the reporting threshold for virtual currency transactions. The regulator defended its stance, citing increased risks and instances of abuse in the crypto sector. To mitigate these risks, FINMA requires technical safeguards to prevent exceeding the 1,000 CHF threshold for linked transactions within a 30-day period.

This isn’t the first adjustment FINMA has made to transaction reporting limits. In January 2020, the regulator reduced the threshold from 5,000 CHF (around $4,944) to 1,000 CHF ($988), citing concerns over rising money laundering activities in the crypto space.

Regulation Timeline and Implementation

The extended ordinance is set to take effect in January 2023. By reinforcing these measures, FINMA aims to enhance transparency and accountability within the rapidly evolving cryptocurrency market.

Lugano’s Crypto Progress

Switzerland continues to make waves in crypto adoption. Recently, Lugano hosted the Plan B conference on Oct. 28, solidifying its position as a hub for blockchain innovation. During the event, the local government announced an economic partnership with El Salvador, which includes plans for the Central American nation to establish a physical presence in Lugano—dubbed by some as a "Bitcoin embassy."

Lugano has become a focal point for crypto enthusiasts demonstrating the real-world utility of Bitcoin, the Lightning Network, and other digital assets. The city’s proactive embrace of cryptocurrency aligns with Switzerland’s broader vision for integrating blockchain technology into its economy while maintaining robust regulatory oversight.

For the latest updates on crypto regulations and innovations in Switzerland, follow Swiss Crypto News.