Other than blockchain, FINMA also noted Switzerland’s status as a private wealth management hub as a contributor to the high risk of money laundering in the country. Furthermore, the agency 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 recent joint statement adopted by the Council of the European Union and the European Commission reads that no global stablecoin project will begin operation in the EU until the perceived risks like money laundering and tax evasion are addressed.

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