Finland on the road of Crypto regulations

Cryptocurrency regulation is a major concern of digital asset investors and the broader community of cryptocurrency enthusiasts. This is because bitcoin (btc) price, xrp price, and the price of other cryptocurrencies are affected by these regulations. When the regulations are unfavorable like in China and the United States, the cryptocurrency adoption suffer but on the flip side, a good regulatory approach encourages innovation in the sector which in turn makes the sector flourish. In bitcoin news now, we take a look at the effect of the newly signed cryptocurrency regulations in Finland and how it would affect cryptocurrency adoption in Europe as well as its price implications.

According to Bitcoin.com, the president of Finland, Sauli Niinistö, has approved a new bill, called the Act on Virtual Currency Providers. which will impose new crypto laws on cryptocurrency service providers in the country.

Finland’s Financial Supervisory Authority, the Fin-FSA, will now regulate cryptocurrency operators including cryptocurrency exchanges, custodian wallet providers, and issuers of cryptocurrencies, by enforcing the new law, which requires all crypto service providers to register with Finland’s Financial Supervisory Authority (Fin-FSA) and meet all statutory requirements.

‘The Act on Virtual Currency Providers enters into force on 1 May. In accordance with the act, the Financial Supervisory Authority (Fin-FSA) will act as the registration authority and supervisory authority for virtual currency providers’, the Fin-FSA stated.

The country’s financial regulator added that only virtual currency providers who meet the statutory requirements are able to carry on their activities in Finland.

‘Virtual currency providers which do not comply with statutory requirements will be prohibited from continuing their business activities, enforced by a conditional fine.’

The Fin-FSA continued by stating that the new bill and included requirements are based on the May 2018 amendments to the EU Anti-Money Laundering Directive and pointed out that all EU member states must include services related to virtual currencies within the scope of AML/CFT legislation by 10 January 2020.

As Smartereum reported, France became the first European country to issue a definitive cryptocurrency regulation and a positive one for the industry at that. The regulation in a similar manner requires registration with its financial regulator and basic KYC policy. Following the pro-crypto policy, France finance minister reportedly told journalists that he would influence other partner European countries to adopt a similar approach to cryptocurrency regulation.

The Fin-FSA, for its part, observed that the new regulations are in line with European guidelines, particularly amendments of EU Anti-Money Laundering Directive. The directive obliges all EU member states to include cryptocurrency-related companies to its AML/CFT legislation.