<p><strong>Switzerland, known for its stable and innovative financial environment, is facing a new controversy regarding the regulation of stablecoins. FINMA (Financial Market Supervisory Authority) has recently proposed new guidelines to regulate stablecoin issuers. This has sparked mixed reactions within the crypto community.</strong></p> 
<h2 id="h-switzerland-tightens-its-regulation-on-stablecoins">Switzerland Tightens Its Regulation on Stablecoins</h2> 
<p>Stablecoins, this subcategory of crypto backed by traditional currencies or other assets, have gained popularity in recent years. However, their rapid growth has also raised global regulatory concerns, particularly regarding money laundering and terrorist financing. To address these concerns, FINMA proposes to classify stablecoin issuers as financial intermediaries! Subjecting them to the same anti-money laundering obligations as traditional financial institutions. Especially since <a href="https://www.cointribune.com/en/crypto-euro-stablecoins-explode-despite-the-eu/" target="_blank" rel="noreferrer noopener">euro-denominated stablecoins are making waves</a> despite strict European regulations.</p>
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<p>According to the new guidelines, stablecoin issuers will need to verify the identity of stablecoin holders and establish the identity of beneficial owners. Additionally, FINMA requires these crypto issuers to have bank guarantees in case of default, to protect depositors. These measures aim to enhance depositor protection and mitigate financial and reputational risks associated with stablecoins.</p> 
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<h2 id="h-crypto-community-reactions">Crypto Community Reactions</h2> 
<p>Although FINMA asserts that these measures enhance depositor protection, they are not without controversy. Some players in the crypto sector believe these requirements could hinder innovation and the growth of stablecoins in Switzerland. Moreover, banks providing default guarantees could be exposed to legal and reputational risks in case of irregularities at stablecoin issuers.</p> 
<p>FINMA’s proposal represents a significant step in the regulation of stablecoins in Switzerland. It reflects a desire to protect the financial system while addressing the challenges posed by the rapid rise of digital assets. However, it remains to be seen how these measures will be received by the crypto sector and whether they will succeed in balancing innovation and security, as is the case with <a href="https://www.cointribune.com/en/the-eu-takes-the-reins-of-ai-with-historic-legislation/" target="_blank" rel="noreferrer noopener">the AI legislation adopted by the EU</a>.</p>

Crypto: Switzerland Takes Drastic Measures Against stablecoins!

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