Finland Introduces New Regulations For Virtual Currency Providers

Europe Regulations

A new law regulating crypto exchanges, custodian wallet providers, and cryptocurrency issuers has been signed by Finland’s president Sauli Niinistö.

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.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

Leave a Comment

Coinlaw Newsletter

Whether you are a law firm, founder gearing-up for a token offering, or a crypto currency trader, subscribe to the biggest crypto legal newsletter to be informed of the latest developments in each and every jurisdiction