FIN-FSA set to regulate crypto service industry

FIN-FSA set to regulate crypto service industry

More countries across the globe are regulating those involved in the sale, trade, and accumulation of cryptocurrency, and another one has just been added to the list. Finland’s Financial Supervisory Authority (FIN-FSA) has taken over that authority, assuming the role of registration authority and supervisory agent for all crypto industry participants according to a new law that is set to take effect later this week.

While there were many skeptics of digital currencies, it has now become one of the more valuable trading commodities on the market today. This led Finland’s central bank to research the potential value these currencies could have, primarily because of what is described as their “revolutionary” potential.

In March, Finnish regulators already began supervising the peer to peer cryptocurrency exchange market. This had long been ignored by the agency, but the FIN-FSA changed course, announcing that all financial regulations related to fiat currency would also be in effect related to digital currencies.

This has become the next step as the government of Finland passed a law in late April that gave the agency complete control over the supervisory authority of those involved in cryptocurrency exchange, as well as a registration authority. The Act of Virtual Currency Providers will give the agency complete authority over all virtual currency providers, custodian wallet providers, and those who issue virtual currencies. According to the act, the main purpose of this regulation is to prevent money laundering, making it an additional tool toward the enforcement of the 5th Anti-Money Laundering Directive.

To help ensure that all parties involved are fully briefed on the ramifications of this act, a briefing will be held on May 15 at the Bank of Finland`s auditorium. A complete timetable will be supplied on how procedures, scheduling, and regulations will be imposed.

Despite the new regulations, FIN-FSA is still providing a warning to those involved in cryptocurrencies, stating in their announcement: “The risks related to virtual currency investments remain unchanged. The risks include sudden major fluctuations in value, data security threats pertaining to exchange services and custodian wallet providers, and the nature of several virtual currencies as speculative investments not involving any inherent source of return.”

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