Finland’s FIN-FSA To Be Official Crypto Supervisory Authority, Act On Virtual Currency Service Providers Set For May 1
Finnish Financial Watch Becomes The Supervisory Authority For The Crypto Sector
Finland will finally see more direct supervision on its crypto sector as Finland’s Financial Supervisory Authority (FIN-FSA) will start to be the official agency that will regulate the crypto sector soon. This will start as soon as the Act on Virtual Currency Service Providers takes effect, which will happen on May 1.
According to the new crypto watchdog, the entity will ask all exchanges in the country to be regulated in order to provide wallets and trading services for citizens of Finland.
It was also noted by the FIN-FSA that the current law has been based on the Fifth Anti-Money Laundering Directive of the European Union. The law was created in the EU last year as the union was interested in protecting its citizens from money laundering and terrorist financing.
The Registration Process
In order to register with the new crypto regulator, all companies will have to be fully compliant with some important rules. The main rules are related to storing and protecting the funds of the clients and segregating their assets, as well as to follow anti-money laundering and marketing laws. This way, only compliant companies will be able to continue working in the country.
A briefing that will be directed to the sector will also be made on the auditorium of the Bank of Finland, Helsinki, on May 15. At the occasion, the companies will receive an explanation about how to address all the regulation practices and the new rules of the industry.
However, the agency does not believe that the investors will be fully protected not even with these measures. According to it, the risks related to virtual assets are basically still the same. They fluctuate in value a lot and can be subject to data security threats if the companies are not very careful with their money.
Some companies, like LocalBitcoins, have already announced that they will be supervised by the FIN-FSA and that they will follow the new legislation. Several others are expected to follow, as being not compliant with the new rules would push them outside of the boundaries of the law.