The Swiss Financial Market Supervisory Authority (FINMA) has reported in a new guide on stablecoins that many digital asset issuers are relying on guarantees from Swiss banks.

Therefore, in accordance with Swiss banking legislation, issuers do not require a license from the regulator to issue and trade stablecoins.

This creates risks for both stablecoin holders and the banks providing guarantees, officials say. Guarantees increase the risk of money laundering, terrorist financing and sanctions evasion, which leads to reputational losses for Switzerland as an international financial center, FINMA representatives are sure.

The agency suggested that participants in the stablecoin market take into account the risks and take the necessary measures to combat the illegal activities of issuers and holders of such digital assets.

Issuers of stablecoins are considered financial intermediaries in Switzerland and are required to verify the identity of the stablecoin owner and establish the identity of the beneficial owner. However, owners of stablecoins are not subject to Swiss banking regulations on deposit protection.

FINMA previously approved the launch of the first national platform that will allow citizens of the country to trade tokenized securities and digital assets.