Bitcoin Must Be Seen for Money Laundering Potential, Finma Says

Switzerland’s financial market regulator says the virtual currency Bitcoin needs to be treated as a serious medium for illicit activity like money laundering in a sign of the widening acceptance of the digital payment system.

Bitcoin’s ability to be used anonymously and internationally increases the risk it could play a role in terrorist financing, Finma, as the regulator is known, said in a February report on draft of its revised decree on money laundering.

Finma has been cautious in its approach to Bitcoin, which emerged six years ago as a decentralized creation of computer programmers. The Swiss regulator in June asked Swiss exchange Bitcoin Suisse to suspend operations of its network of automated teller machines pending enquiries about its operations.

Finma held a two-month consultation period that wrapped up last month and will incorporate that feedback into the revision of its Anti-Money Laundering Ordinance.