The Swiss financial regulator is extending checks for money laundering in cryptocurrency transactions, despite considerable resistance from the country’s users.
Customers will have to prove their identity if they make transactions totaling 1,000 Swiss francs ($1,000) within a month when exchanging cryptocurrency for cash or another form of money.
Virtual currencies are often used as a payment instrument for illicit trade, especially drugs, or to pay ransom after cyberattacks,” the Financial Markets Supervisory Authority said in a report.
The risk of money laundering in virtual currency is heightened by the potential anonymity as well as the speed and cross-border nature of transactions.
As a result, the Authority has proposed a reduction in the 1,000 franc limit that had previously been set on a per-day basis.
Switzerland has long sought to assert itself as a cryptocurrency center, while at the same time the country’s regulators are trying to rid it of its reputation as a money-laundering destination.
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