Switzerland imposes sanctions on cryptocurrencies
We all know about the role of Switzerland in the global economy. One of the most reliable banks in the world is concentrated on the territory of this state; huge amounts of money are entrusted to local companies. In general, Switzerland is a fairly progressive state in the financial sense. The government is quite loyal to Blockchain and all developments based on such protocols. However, literally today, an unexpected message arrived that Switzerland would significantly reduce the freedom to use cryptocurrency on its territory. Today we will tell you about all the nuances, outline the role of the new prohibitions and explain what caused them. Let’s get started.
What exactly is the news
Until today, there was a fairly comfortable restriction in Switzerland: all cryptocurrency transfers were anonymous, but until the amount of a single transaction did not exceed five thousand francs. In dollar terms, this amount is $5123. That is, each crypto user could easily send money within such limits, without identifying himself. But the Swiss Financial Market Supervisory Authority (FINMA) has amended it.
From today, the maximum available for translation without identification will be one thousand francs or $1024. It is worth noting that such an initiative does not come from FINMA itself, but from the group developing financial measures to combat money laundering, in short – FATF. A group of specialists believes that by limiting the amount of anonymous transfers, the country will be able to control the level of crime and directly influence the level of economic crimes. This really makes sense, because now, translating, say, $1025, you need to go through authorization on a special site.
Switzerland is very worried about its reputation. The country is ready to implement Blockchain, but only if such innovations do not affect its position in the global economy. According to the authorized persons, after the state allowed the use of the crypt, the number of monetary crimes increased several times. Now this trend will decline.
How Switzerland affects the position of the crypto industry
Remember, we said at the very beginning that Switzerland is one of the main places in the global economy. Experience shows that such authoritative states are readily listened to and copied. The introduction of restrictions by Switzerland suggests that cryptocurrencies are still considered primarily as a means for money frauds. The world community is not ready to immediately accept Blockchain and its subtleties, such as decentralization and anonymity. However, aren’t the changes, in the likeness of those adopted by the Swiss, a direct violation of the concepts of the crypto industry?
Not really. It should be understood that Blockchain is largely utopian. The economies of countries such as the USA, Canada or Switzerland cannot afford the luxury of anonymity and distributed networks. If we want to see Blockchain in the ecosystems of states, we must come to terms with the fact that our favorite technology will undergo a number of restrictions and changes. This is the natural order of things that you should not be afraid of.
Follow the news of the crypto industry with us. We publish only high-quality, interesting material. Thanks for attention. Good luck!
