Finland begins to regulate the crypto industry in accordance with the new law
29.04.19
The Ministry of Finance of Finland announced the approval by the President of the country of the law “On suppliers of virtual currencies”. Separately, the Financial Supervision Authority - Fin-FSA - stated: “The Law on Providers of Virtual Currencies” comes into force on May 1. In accordance with the law, Fin-FSA will take over the functions of registering and controlling suppliers of virtual currencies. ” 

As explained in Fin-FSA, registration is required for “virtual currency exchange services”, “custodial purse providers” and “virtual currency issuers”. Such companies must comply with a number of requirements, for example, adhere to certain practices for protecting clients' assets, separate them from their own funds and use anti-money laundering mechanisms. 

In the future, only crypto companies that meet these requirements will be allowed to operate in Finland. Until November 1, they can continue to serve local residents without registration. 

Fin-FSA notes that the new requirements are based on the amendments introduced to the EU Anti-Money Laundering Directive in May 2018. Registration with Fin-FSA does not entitle crypto companies to do business in other EU countries, as each of them may have its own requirements. 

In March, Localbitcoins, a popular Bitcoin peer-to-peer exchange service located in Finland, announced a tightening of control over user accounts, citing the requirements of the new legislation.