Finnish based cryptocurrency brokerage and exchange company Prasos has received a payment institution license (PIL) from the European Union. This made them just the third crypto firm in Europe to receive such a license.
Granted by the Finnish Financial Supervisory Authority, the license gives Prasos the ability to offer fiat currency payment services for those who are users of its Finnish Coinmotion exchange platform. It also allows them to accept fiat payment services in other countries within the European Economic Area.
This is a huge turn around for the Finnish exchange. In March 2018, it was believed that the Prasos could be shutting down altogether as a lack of regulation by the government was prompting many banks within the country of Finland to opt to not do business with cryptocurrency exchanges or wallets. In addition, many were refusing to do business with Prasos out of concerns that they were in violation of the country’s anti-money laundering (AML) laws and AML laws within the European Union.
In fact, the prognosis looked so bleak that one publication questioned whether Prasos’ days as an exchange service were numbered. The fears related to money laundering were so prevalent that it was believed that there was no way the exchange could survive.
Yet, Prasos joins an exclusive group of crypto exchange companies that has now received a license to do business within the European Union. It took 18 months for the exchange to be approved, starting right about the time when many were throwing dirt on their grave.
Prasos Oy’s managing director Heidi Hurskainen acknowledges that the company was facing a tough period at one point, but points out that it was the development of legislation by the European Union related to cryptocurrencies and exchanges that turn things around.
These new regulations will be enacted in May 2020, prompting Prasos to once again have to file for a license with the Finnish Financial Supervisory Authority. However, it would not be surprising to see this as anything more than a formality. Since the exchange has undergone the lengthy process of receiving a license in the first place, unless some malfeasance is reported, they would be no reason to believe they would not be approved in 2020.
This watchdog agency is responsible for regulating financial markets within Finland. In this role, they monitor and police for potential money laundering within financial institutions, and approval by this agency already should ensure the renewal of the license next year.
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