Swiss financial watchdog FINMA has issued new guidance for stablecoin issuers, emphasizing the need for identity verification of all token holders as of July 26. The guidance seeks to address risks and challenges posed by stablecoins and their associated banking guarantees.
FINMA’s stipulations require issuers to verify the identities of token holders and beneficial owners, aiming to mitigate risks in the stablecoin market. The guidance also mentions that accepting public deposits for stablecoins typically necessitates a banking license, although certain conditions may exempt issuers.
Notably, the guidance includes protections for depositors in case of issuer bankruptcy, requiring individual claims against the guaranteeing Swiss bank and coverage for all public deposits and earned interest. Currently, stablecoins in Switzerland operate under general financial service laws, either as deposits or collective investment schemes, depending on asset management.
FINMA’s guidance underscores the need for regulatory action to fill gaps in the stablecoin industry, highlighting its strategic importance for financial stability.
