Norway’s Financial Authority Finanstilsynet Issues New Crypto Exchange Money Laundering Rules

Norway’s Financial Supervisory Authority has established new money laundering rules that will apply to cryptocurrency storage providers and exchanges in the country. The law is expected to go into effect as of October 15, and will only target companies with bases in Norway as well as their braches overseas. The regulator clarified that:

“The law applies to reporting companies established in Norway, including branches of foreign companies.”

Companies Given Until January 15, 2019 To Fully Comply

The announcement of the new regulations was announced on Thursday by the Financial Supervisory Authority (FSA) known as Finanstilsynet. While the new laws are expected to be observed from October 15, “Norwegian providers of virtual currency exchange and storage services” have until January 15, 2019 to fully comply.

The regulator stated that:

“Finanstilsynet will ensure that virtual currency exchange and storage providers comply with the money laundering rules. However, FSA does not have any tasks related to the monitoring of other areas of these providers, such as investor protection.”

Crypto Service Providers To Be affected

Under the new Money Laundering Act, the obligation apply to cryptocurrency storage services as well as providers offering exchange services between any digital asset and fiat currencies, including the Norwegian Kroner.

According to the regulator, the firms storing private keys for customers will also be affected, because they are considered to be involved in “the transfer, storage or purchase of virtual currency.”

The law, however, doesn’t affect cryptocurrency exchanges that deal solely with digital assets. Finanstilsynet emphasized that:

“Exchanging between different types of virtual currencies (eg from bitcoin to ethereum) is not included.”

How Customers will be Impacted

The new rules detail that all affected providers have to register with the regulator and provide all the necessary documents. The agency also noted that customers will have to answer questions as to the origin of their funds or purpose of any transaction they make. Finanstilsynet noted that:

“Consequently, customers must expect to identify and receive questions such as the purpose of a transaction or the origin of funds, etc.”

The regulator, however, clarified that:

“Individuals who buy or sell their own virtual currencies for private purposes and those who occasionally assist friends and acquaintances with the purchase and sale of virtual currencies will not be subject to the reporting requirements under the new money laundering rules.”

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