The Swiss regulator announced increased risks due to the growing popularity of stablecoins

The Swiss Financial Market Supervisory Authority (FINMA) has stressed that stablecoins not only increase the risks of terrorist financing and sanctions evasion, but also pose reputational risks to the entire Swiss financial system. To reduce these risks, FINMA recommended classifying stablecoin issuers as financial intermediaries who must fulfill the same anti-money laundering (AML) obligations as traditional financial institutions. This includes verifying the identity of the stablecoin holders.