Featured Product

    FIN-FSA Grants Five Registrations as Virtual Currency Provider

    November 01, 2019

    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

    Related Articles
    News

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Swap Margin Rule

    US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.

    July 01, 2020 WebPage Regulatory News
    News

    PRA Letter Sets Expectations on Approach to Managing Climate Risks

    PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.

    July 01, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR

    EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).

    July 01, 2020 WebPage Regulatory News
    News

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS Publishes List of Internationally Active Insurance Groups

    IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.

    July 01, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act

    FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).

    July 01, 2020 WebPage Regulatory News
    News

    EC Launches Consultation on Review of Solvency II Directive

    EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.

    July 01, 2020 WebPage Regulatory News
    News

    ECB Consults on Supervisory Approach to Consolidation in Banking

    ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS on Package for 2020 Data Collection on ICS and Aggregation Method

    IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.

    June 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5425