FINMA implements crypto monitoring from CHF 1,000

The Swiss Financial Market Supervisory Authority (FINMA) is calling for stricter crypto surveillance. From next year, a limit of 1,000 Swiss francs will apply to exchange transactions between digital currencies and fiat money .

If an exchange above this threshold takes place within 30 days, the responsible user must identify himself. According to their own statements, the measure serves to fight money laundering.

Switzerland and EU uniform: FINMA decides crypto monitoring from a thousand threshold

Critical voices from FINMA have repeatedly been heard over the past few months . The target of the criticism are cryptocurrencies like Bitcoin . There is a lack of regulation here. As recently as June, the director of the agency said he wanted comprehensive crypto regulation . At that time, the ideas of director Urban Angehrn even exceeded the limits of what was feasible.

However, FINMA is now coming up with a very specific decision. From January 1, 2023, crypto surveillance will apply from a threshold of 1,000 Swiss francs . The federal authority is thus following a development that can also be seen in the European Union.

With legislation called MiCA coming into force in the EU in 2024, the European Union authorities are demanding the exact same threshold.

Money Laundering Ordinance in relation to crypto – details

As FINMA announced in a press release yesterday , a monitoring threshold of CHF 1,000 or more will apply from next year. FINMA is expanding the Swiss Anti-Money Laundering Ordinance to include cryptocurrencies.

The principle is very simple: if a user converts fiat currencies of over 1,000 Swiss francs into cryptocurrencies, the responsible user must identify themselves during this process using the usual KYC process.

According to their own statements, this is how they want to curb money laundering. So far, this has been too easy to do with cryptocurrencies.

The latest findings prove that the money laundering that can be traced takes place largely in the crypto industry itself. Those in charge avoid going through fiat gateways as they are heavily monitored.

Compared to its EU counterparts, FINMA implements the new part of the Anti-Money Laundering Ordinance particularly strictly. Finally , the threshold applies for a period of 30 days instead of just one day.

If there are several exchange transactions between fiat and crypto within a month, these payments are considered to be related and identification is also necessary if the threshold is exceeded.

Technical precautions are needed to avoid exceeding the threshold of a thousand francs for linked transactions within thirty days (and not just per day). However, this obligation only applies to exchange transactions of virtual currencies against cash or other anonymous means of payment.

Explains the authority. By means of an identity check, cases of money laundering should be detected in case of doubt.

At the same time, however, it is also stated that there is no periodic user check according to legal requirements. However, the responsible financial intermediaries (e.g. crypto exchanges) must “issue internal instructions”.

According to this, an operational check of the customers should take place from time to time, but details on this are not specifically prescribed.