Finland's cryptography regulations are now fully in force. The top five cryptography service providers have been allowed to operate legally in the country, confirmed the Finnish regulatory authority at news.Bitcoin.com. The grace period to operate without registration has expired.
Read also: Finland starts regulating cryptographic service providers
Only five registered
The Finnish Financial Supervisory Authority (FIN-FSA) announced on 1 November that it had granted registration to five cryptographic service providers. Registrants are Localbitcoins, Northcrypto, Prasos, Prasos Cash Management and Tesseract Group. A FIN-FSA spokesperson confirmed at news.Bitcoin.com Monday:
Since November 1st, these five virtual money providers are the only ones authorized to operate in Finland.
Localbitcoins operates a global bitcoin market of equals. Northcrypto provides an exchange service for BTC and LTC in euros. The Tesseract group, formerly Whalelend, provides asset management, over-the-counter trading and lending services.
Prasos offers cryptographic exchange and asset management services under four different brands. Coinmotion is an investment platform for BTC, LTC, ETH, XRP and XLM, which also offers private crypto banking services, white label solutions and market services. The others are Bittiraha, a Bitcoin community and broker; Denarium, a manufacturer of physical bitcoins; and Bittimaatti, a bitcoin ATM network.
"The registration process requires a lot of effort on the part of candidates, for example with regard to customer due diligence and written documentation of activities," FIN-FSA explained. .
During the registration process, the regulator verified whether the plaintiffs had adequate measures in areas such as the prevention of money laundering and terrorist financing, the holding and protection of client assets, as well as the establishment of an adequate management structure. The registrants have submitted to FIN-FSA written statements describing how they are complying with the requirements. In the future, the regulator will monitor them for compliance, for example by requesting clarifications and conducting inspections.
As of 1 November 2019, only virtual money providers meeting the requirements of the legislation may operate in Finland.
Rules of crypto in Finland
The Law on Virtual Money Providers (572/2019) entered into force in Finland on 1 May. She installs FIN-FSA as "the authority for registering and monitoring virtual currency providers," says the regulator's website. The law is based on EU legislation against money laundering.
Crypto issuers, stock exchanges, marketplace operators and portfolio providers are required to register. FIN-FSA defines a "portfolio provider" as "a natural or legal person holding virtual currency on behalf of another party or transferring or storing virtual currency". Merchants who provide cryptography services within a limited network or are occasionally exempt from registration, as well as professional activities that require another authorization issued by other authorities.
The regulator reiterated that "new providers of virtual currencies can not start providing services in Finland until their application for registration has been approved," adding:
If the virtual money provider does not comply with the requirements, its activities will be prohibited and the FIN-FSA will impose a fine.
What do you think of FIN-FSA approving these five cryptographic service providers? Let us know in the comments section below.
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Images reproduced with the kind permission of Shutterstock and FIN-FSA.
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