According to Cointelegraph: As stablecoins gain traction globally, the Swiss Financial Market Supervisory Authority (FINMA) has proposed new guidelines aimed at enhancing regulatory oversight and mitigating financial risks. This move reflects growing concerns over the potential impact of stablecoins on regulated institutions and the broader financial ecosystem.

New Regulatory Framework

FINMA's recent guidance document proposes classifying stablecoin issuers as financial intermediaries. This classification underscores the increased risks associated with money laundering, terrorism funding, and sanctions evasion linked to these digital assets.

Anti-Money Laundering Obligations

According to FINMA, stablecoin issuers must adhere to the same Anti-Money Laundering (AML) obligations as traditional financial institutions. This includes verifying the identity of stablecoin holders and establishing the identity of beneficial owners. The guidance, issued on July 26, states:

“The stablecoin issuer is therefore considered a financial intermediary for Anti-Money Laundering legislation and must, among other things, verify the identity of the stablecoin holder as the customer following the applicable obligations (Art. 3 AMLA) and establish the identity of the beneficial owner (Art. 4 AMLA).”

Framework for Default Guarantees

FINMA also outlined how stablecoin issuers can operate without a banking license if they meet specific conditions designed to protect depositors. Issuers must have a guarantee from a bank in case of default, stay within guarantee limits, and allow immediate claims in case of insolvency.

Enhancing Depositor Protection

While FINMA's measures enhance depositor protection, they do not provide the same security as a banking license. However, the regulator is committed to mitigating default guarantee risks and ensuring that stablecoin issuers meet robust standards to safeguard customers.

Global Regulatory Response

The stablecoin sector, including cryptocurrencies pegged to traditional currencies like Tether, has seen exponential growth, reaching unprecedented market capitalization in 2023. In response, global regulators are hastening to establish guidelines for this rapidly evolving sector.

According to the PwC Global Crypto Regulation Report 2023, at least 25 countries, including Switzerland, had implemented stablecoin regulations or legislation by the year's end. As stablecoins continue to gain traction, regulatory initiatives like FINMA’s guidance are likely to influence policies in other jurisdictions.