Finland -- Enforcement Actions Regulatory Overview

Finland's cryptocurrency regulatory landscape is primarily overseen by the Financial Supervisory Authority (FIN-FSA or Finanssivalvonta). Their enforcement actions largely focus on ensuring compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations, as well as the registration requirements for virtual currency providers.

Here are the most significant cryptocurrency enforcement actions in Finland within the last three years (mid-2021 to mid-2024):

1. Stableton (formerly Tesseract Finance Oy)

• Regulator Name: Financial Supervisory Authority (FIN-FSA)
• Entity Targeted: Tesseract Finance Oy (now operating as Stableton)
• Violation Type: Providing virtual currency services without proper registration for a period, and deficiencies in internal control mechanisms, risk assessment, and customer due diligence processes for Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF).
• Penalty Amount: Public warning (julkinen varoitus). While not a monetary fine, it's a formal and significant disciplinary measure by the FIN-FSA, obliging the company to rectify its shortcomings.
• Date: Decision issued on October 25, 2023.
• Outcome: The company was required to implement corrective measures to comply with the Virtual Currency Providers Act and AML/CTF obligations. The public warning serves as a significant mark on the company's regulatory record.
• Source URL: Finanssivalvonnalta julkinen varoitus Tesseract Finance Oy:lle (FIN-FSA Press Release, 25.10.2023)

2. Coinmotion Oy

• Regulator Name: Financial Supervisory Authority (FIN-FSA)
• Entity Targeted: Coinmotion Oy (a registered virtual currency provider in Finland)
• Violation Type: Deficiencies in compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) obligations, specifically regarding customer due diligence, risk assessment, and internal control. The FIN-FSA found that Coinmotion's practices did not fully meet the requirements of the Act on Virtual Currency Providers and the Anti-Money Laundering Act.
• Penalty Amount: Public reprimand (julkinen huomautus). Similar to the public warning, this is a formal, non-monetary disciplinary action, indicating serious shortcomings that required immediate correction.
• Date: Decision issued on February 9, 2022.
• Outcome: Coinmotion Oy was instructed to rectify the identified deficiencies in its AML/CTF processes to ensure full compliance with regulatory requirements.
• Source URL: Finanssivalvonnalta julkinen huomautus Coinmotion Oy:lle (FIN-FSA Press Release, 09.02.2022)

Summary of Finnish Enforcement Approach:

The Finnish FIN-FSA's enforcement actions demonstrate a clear focus on the stringent application of Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations, as well as ensuring proper registration for virtual asset service providers (VASPs). While the penalties above were not monetary fines, public warnings and reprimands are significant tools for regulators to enforce compliance and signal to the market the importance of robust internal controls and adherence to the law. These actions reflect the FIN-FSA's commitment to maintaining financial market integrity and preventing the misuse of virtual currencies.