The blockchain contributes to money laundering, the Swiss financial regulator believes

Service for the supervision of the Financial Markets of Switzerland (FINMA) stated that the country was faced with serious risks of money laundering and one of the reasons for this is the use of the blockchain.

In its annual report, the regulator indicated that blockchas and cryptocurrency additionally aggravate the problems existing in Switzerland in the financial industry.

Although FINMA recognizes that new technologies contribute to improving the efficiency of organizations, but the increase in the potential of anonymity factor, the speed and global nature of these tools make them attractive for use in the criminal sphere.

The service also indicates that crimes associated with money laundering are inhibited by the introduction of emerging financial technologies, and harm the country’s reputation as a whole. After adding that the reduction of bank profits may encourage them to cooperate with clients from developing markets with a high level of risk.

The problem of slowing down the integration of digital assets can already be observed on the limitations entered by regulators and governments of the leading countries of the world. In October, the members of the G-7 agreed that they would not allow the use of such products without resolving issues of control and mechanisms to minimize risks for the financial system.

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