April 21, 2021

Blockchain contributes to money laundering, according to the Swiss financial regulator

Blockchain contributes to money laundering, according to the Swiss financial regulator

The Swiss Financial Markets Supervisory Authority (FINMA) said the country faces serious money laundering risks and one of the reasons for this is the use of blockchain.

In its annual report, the regulator indicated that blockchain and cryptocurrencies further exacerbate the problems in the financial industry that exist in Switzerland.

Although FINMA recognizes that new technologies are helping organizations become more efficient, the potential for anonymity, the speed and global nature of these tools are growing. make them attractive for use in the criminal field.

The service also indicates that crimesassociated with money laundering inhibit the implementation of nascent financial technologies, and harm the reputation of the country as a whole. Adding that declining bank profits may encourage them to work with high-risk emerging market customers.

The challenge of slowing digital asset integrationyou can already observe the restrictions imposed by regulators and governments of the leading countries of the world. In October, G-7 members agreed that they would not allow the use of such products without addressing control issues and risk minimization mechanisms for the financial system.

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