Swiss Regulator wants to kill stablecoins
Troubles are appearing in the Swiss „crypto paradise”…
an article written by Anton Golub – Founder & President of SwissAssetDAO (since 2013 in crypto)
The Swiss regulator, Swiss Financial Market Supervisory Authority (FINMA) plans to kill issuance of stablecoins in Switzerland! FINMA announced guidance on stablecoin issuance and it looks catastrophic for the crypto industry in Switzerland.
FINMA now demands that stablecoin issuers must either have a banking license or secure a bank guarantee. This is a massive blow to crypto startups and innovators. It’s a near-impossible hurdle that will kill off new projects before they even begin. Nobody in their right mind will try to get a banking license, just to issue stablecoins!
Imagine telling investors you need tens of millions of $ to setup operations, build a massive legal & compliance team, and then another $20 million of regulatory capital that will sit with the central bank – that’s all before you even start! Smart investors would point to Tether that operates with a dozen of people and makes billions of dollars in profits.
Secondly, FINMA now also insists that every stablecoin holder must be identified. This destroys the core principle of decentralized finance (DeFi). No more anonymity. No more true decentralization. Stablecoins will be forced into a centralized, regulated box.
I can’t wait for FINMA to wake up and further detail its guidance, considering that the Swiss National Bank (SNB) nor anyone else, has any clue whatsoever about the beneficial ownership of CHF 10.- bills, CHF 2.- coins etc.
These draconian rules will devastate what’s left of the declining Swiss crypto scene. Innovation needs freedom, not chains (pun intended!). FINMA’s heavy-handed approach will drive innovators to friendlier shores like Abu Dhabi and Dubai, which are fast becoming the new hubs for blockchain growth.
Switzerland was once a „crypto paradise.” Now, it’s a regulatory nightmare.
____________
Related content: FINMA publishes guidance on stablecoins
Anders Olofsson – former Head of Payments Finastra
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
