The crypto broker Bity filed a lawsuit against the Swiss Financial Market Supervisory Authority (FINMA) over unjustified limits on digital-asset operations.
The firm announced the suit when it launched a crowdfund to cover legal costs.
Bity challenged the monthly limit of 1,000 CHF (~$1,152) on cryptocurrency transactions for customers who had not completed KYC procedures. The previous limit was 5,000 CHF (~$5,762).
“FINMA fights not as openly as the SEC in the United States, but more insidiously. The regulator uses all its soft power to change the law undemocratically. This must stop,” said representatives of Bity.
In November 2022, FINMA revised its AML rules to combat money laundering and included digital assets, lowering the minimum amount for these transactions for unverified users.
According to the broker’s filing, the regulator began to treat all crypto transactions as high risk, since they could facilitate criminal schemes. Because of these rules, the industry is forced to apply more complex security systems, which “undermines the usability of digital assets”, the company’s representatives said.
“To implement the latest change, FINMA didn’t even bother issuing a regulation. They sent a simple email, referring to the Swiss edition Blick. After this notice the industry protested, so the regulator still had to draft a proper document,” noted Bity.
Earlier, Lugano announced that Bitcoin, Tether and the LVGA city token would be de facto legal tender.
Earlier, the National Bank said not intend to buy and store digital gold as a reserve currency.
Subsequently, the cantonal authorities of Zug raised the minimum threshold of taxes payable in Bitcoin and Ethereum from 100,000 CHF to 1,500,000 CHF ($1.67m).