FIN-FSA granted LocalBitcoins Oy, NorthCrypto Oy, Prasos Oy, Prasos Cash Management Oy, and Tesseract Group Oy registration as virtual currency providers. From November 01, 2019, only virtual currency providers who fulfill the requirements provided by legislation may practice activities in Finland. FIN-FSA stipulates that only registered virtual currency providers provide such services in Finland. If a virtual currency provider does not comply with the requirements, its activities will be prohibited and the FIN-FSA will impose a fine on the provider. Registration and supervision bring virtual currency providers under the scope of anti-money laundering regulation.
The directive on the prevention of money laundering and terrorist financing is now extended to cover virtual currency providers throughout EU. Even though the requirement for the registration and supervision of virtual currencies is based on EU regulations, registration granted by a national competent authority of a member state does not give the service provider authorization to provide services in other EU member states. The registration process requires significant effort from the applicants, for example, concerning customer due diligence and written documentation of activities. Virtual currencies are high-risk investments, despite the registration obligation. The risks include extreme and abrupt price volatility, information security threats on exchange platforms and wallet providers and the fact that many virtual currencies are used as speculative investments.
Virtual currency providers are not subject to statutory risk management and capital adequacy requirements. The regulation and supervision of virtual currency providers is not as comprehensive as that of other financial sector entities. The provision of virtual currencies is an international and cross-border activity. Finnish investors in virtual currencies may, therefore, use services provided by a virtual currency provider operating from another country.
Related Link: Press Release
Keywords: Europe, EU, Finland, Banking, Securities, Virtual Currencies, AML, Registered Virtual Currency Providers, FIN-FSA
Previous ArticleMAS Publishes Explanatory Brief on Banking (Amendment) Bill 2019
Next ArticleIAIS Publishes Newsletter for October 2019
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The EBA Single Rulebook question and answer (Q&A) tool updates for this month include answers to ten questions.
ESMA updated the set of questions and answers (Q&A), along with the reporting instructions and an XML schema for the templates set out in the technical standards on disclosure requirements, under the Securitization Regulation.
EU published Regulation 2021/337, which amends the Transparency Directive (2004/109/EC), regarding the use of the single electronic reporting format for annual financial reports.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.