According to The Finnish Financial Supervisory Authority (Fin-FSA) the Act on Virtual Currency Providers will come into force on May 1.
The Finnish financial watchdog revealed further details about the new law, under which cryptocurrency service providers – namely crypto exchanges, custodian wallet providers, and cryptocurrency issuers – will be required to register with the Fin-FSA if they wish to operate in Finland. Moreover, they will have to meet a number of requirements, including:
- Reliability of the provider (including fit and proper requirements).
- Holding and protecting client money.
- Segregation of client money and own funds.
- Marketing of services.
- Compliance with AML/CFT regulation.
“Only virtual currency providers meeting statutory requirements are able to carry on their activities in Finland. Virtual currency providers which do not comply with statutory requirements will be prohibited from continuing their business activities, enforced by a conditional fine.” Stated Fin-FSA in its press release.
To provide more clarity on the registration requirements, procedures and other issues concerning virtual currency providers, Fin-FSA will hold a briefing for the sector on 15 May at the Bank of Finland’s auditorium in Helsinki.