The Swiss Fiscal Market Supervisory Authority (FINMA) warned the country that Switzerland is particularly decumbent to money laundering risks for reasons including the use of blockchain technology.

In its start-e'er yearly risk monitor report — published by FINMA on Dec. 10 — the regulator warns that blockchain and crypto assets exacerbate the country's already existing money laundering risks. The certificate reads:

"In addition to [...] traditional money-laundering risks, the financial industry besides faces new risks in the area of blockchain technology and the cryptoassets that are attracting growing involvement from clients."

Money laundering slows crypto adoption

The regulator admits that, while these new technologies hope efficiency improvements in the financial industry, they also increase the threats of coin laundering and terrorism financing. The regulator believes that the purportedly greater potential for anonymity and the speed and global nature of such financial tools make them attractive instruments for criminal apply.

The report likewise states that crimes like money laundering could tedious the adoption of nascent technologies like blockchain:

"Malpractice by the fiscal institutions active in FinTech could significantly harm the reputation of the Swiss financial centre and boring down the development of digitalisation."

Other than blockchain, FINMA also noted Switzerland's status as a private wealth direction hub as a correspondent to the high gamble of money laundering in the country. Furthermore, the bureau stated that shrinking profit margins for banks may tempt institutions to accept clients from high-risk emerging markets.

For better or worse, money laundering concerns are already slowing the adoption of crypto assets. As Cointelegraph reported, a contempo joint statement adopted past the Quango of the European Union and the European Commission reads that no global stablecoin project will brainstorm operation in the EU until the perceived risks like coin laundering and taxation evasion are addressed.

In order to stay compliant, exchanges have started delisting cryptocurrencies that provide higher privacy standards. For instance, at the finish of November, cryptocurrency exchange BitBay will delist privacy-centric cryptocurrency Monero (XMR) due to coin laundering concerns. In September, crypto exchange OKEx did the same to many privacy-focused coins.