The Swiss Financial Market Supervisory Authority （FINMA） releases new guidance on the risks and default guarantees associated with stablecoins.
Points
- FINMA addresses the issuance and regulation of stablecoins.
- Highlights increased risks of money laundering and terrorist financing.
- Emphasizes the need for robust default guarantees.
- Reviews of Swiss banks show deficiencies in risk analysis.
- New guidance aims to enhance transparency and compliance.
The Swiss Financial Market Supervisory Authority （FINMA） has issued new guidance addressing the issuance of stablecoins, emphasizing the associated risks and the need for robust default guarantees. This move comes in response to the growing significance of stablecoin projects in Switzerland and their potential impact on the financial market.
Stablecoins aim to provide a low-volatility payment method on blockchain technology. However, they pose heightened risks of money laundering, terrorist financing, and sanctions evasion. FINMA stresses that these risks can also lead to reputational challenges for the Swiss financial sector.
According to FINMA, stablecoin issuers are classified as financial intermediaries under anti-money laundering regulations. They must verify the identity of holders and the beneficial owner, repeating the verification process if any doubts arise during the business relationship.
The guidance also addresses the use of default guarantees from banks by some stablecoin issuers to avoid the need for a banking license. This arrangement introduces risks for both stablecoin holders and the banks providing the guarantees. FINMA’s minimum requirements for default guarantees aim to safeguard depositors and enhance compliance.
Earlier this year, FINMA reviewed the money laundering risk analyses of over 30 Swiss banks and found many did not meet basic requirements. Issues included inadequate definitions of risk tolerance and missing structural elements essential for risk analysis. The new guidance seeks to address these deficiencies and improve transparency.
解説
- The new FINMA guidance is a critical step in addressing the regulatory challenges posed by stablecoins, ensuring that they are adequately designed and supervised.
- By classifying stablecoin issuers as financial intermediaries, FINMA underscores the importance of thorough identity verification processes to mitigate risks.
- The emphasis on robust default guarantees highlights the need for stablecoin projects to maintain high standards of financial security, protecting both investors and the broader financial system.
- The review of Swiss banks’ risk analyses reveals significant gaps in compliance, prompting the need for more stringent regulatory measures and improved risk management frameworks.
- This guidance aligns with global efforts to enhance the regulation of digital assets, aiming to balance innovation with financial stability and security.