Increasing Risks Associated with Cryptocurrencies
The Swiss Financial Market Supervisory Authority (FINMA), in its Risk Monitor 2024 report, has warned of the growing threat of money laundering through cryptocurrencies. Digital currencies, including stablecoins, are increasingly being used to fund cyberattacks, illicit activities on the dark web, and to circumvent sanctions in geopolitical conflicts.

Stablecoins and Their Role in Sanction Evasion
FINMA highlighted that stablecoins, such as USDT and USDC, have seen a significant increase in illicit transactions, particularly those related to sanction evasion. This situation complicates the fight against money laundering and poses a serious challenge for regulators.

FINMA’s Response: Stringent Measures and Oversight
To mitigate money laundering risks, FINMA is implementing several key steps:

  • On-site inspections – regular audits of financial institutions.

  • Audit program revisions – ensuring effective monitoring mechanisms.

  • Focus on high-risk clients – prioritizing entities with politically exposed customers or links to high-risk regions.

Regarding digital assets, FINMA stated that it takes institution-specific actions to effectively address money laundering vulnerabilities. The regulator also issued guidelines for stablecoins, requiring issuers to verify the identities of token holders and beneficial owners.

Consequences for Crypto Companies
FINMA warned that financial intermediaries operating in the crypto space without proper risk management measures may face legal repercussions and reputational damage. These concerns are echoed by regulators worldwide.

Global Concerns About Cryptocurrencies and Stablecoins

The issue of money laundering linked to cryptocurrencies is not confined to Switzerland. In the UK, the Financial Conduct Authority identified crypto firms as one of the most vulnerable sectors to money laundering in 2022–2023. The authority introduced strict registration requirements for crypto companies to address these risks.

Notable Cases: Binance, KuCoin, and Tether

Several major platforms have faced allegations of facilitating money laundering:

  • Binance and KuCoin – frequently scrutinized for alleged insufficient regulatory compliance.

  • Tether (USDT) – has faced longstanding accusations of enabling money laundering and other illicit activities. Recently, Tether came under renewed scrutiny following reports that the US Department of Justice launched an investigation into potential sanctions violations and anti-money laundering breaches. The company has denied any wrongdoing.

Conclusion: Growing Regulatory Pressure on Cryptocurrencies
Switzerland and other countries are tightening their oversight of the cryptocurrency sector. While cryptocurrencies offer innovation, their misuse for illegal activities remains a significant barrier to broader adoption. In the coming years, further regulatory measures are expected, especially concerning stablecoins and crypto transactions.


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