Centralized exchange in Finland

Financial Supervisory Authority (FIN-FSA): The primary regulator responsible for authorizing and supervising all crypto-asset service providers, ensuring compliance with anti-money laundering (AML), consumer protection standards, and operational requirements.

Financial Intelligence Unit (FIU): Operates within the National Bureau of Investigation to receive and investigate suspicious transaction reports from crypto service providers, focusing on preventing money laundering and terrorist financing.

Issuance of licenses for providers offering stablecoins and other crypto assets.

Obligations for market makers, custodial services, and exchanges to comply with stringent operational standards.

2024-2025: Gradual rollout affecting broader categories of crypto service providers.

2026: Full enforcement across all covered activities.

Mandatory transparency disclosures regarding the nature, risks, and costs associated with crypto assets.

Requirements for clear terms of use and accessible customer support mechanisms.

Providing services for exchanging virtual currency and fiat currency: This covers entities facilitating the purchase or sale of virtual currencies using traditional currencies (e.g., EUR, USD).

Providing custodial wallet services: This refers to services where an entity holds, stores, or transfers virtual currencies or private cryptographic keys on behalf of customers.

Exchanges: Both exchanges offering fiat-to-crypto and crypto-to-crypto trading services are clearly defined as "virtual currency providers" and require registration with the FIN-FSA.

The applicant must be a Finnish limited liability company (osakeyhtiö) or a branch of a limited liability company incorporated in an EEA country.

The management of the applicant must be located in Finland. This includes the CEO and at least one other member of the board of directors.

Capital Requirements (Professional Indemnity Insurance):

Objective: Prevent illicit activities by making it difficult for criminals to use money laundering techniques across borders.

Names and addresses of the sender and recipient

Description of the transaction (including amount and cryptocurrency type)

Purpose of the transfer (if known)

Compliance Infrastructure: Integrate robust systems for real-time collection, verification, and transmission of required data points.

Enhanced Due Diligence (EDD): Additional layers of verification for high-risk transactions may be necessary.

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. 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.

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. Outcome: Coinmotion Oy was instructed to rectify the identified deficiencies in its AML/CTF processes to ensure full compliance with regulatory requirements.

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.

Outcome: Coinmotion Oy was instructed to rectify the identified deficiencies in its AML/CTF processes to ensure full compliance with regulatory requirements.

Legal Basis: The primary legal framework is the Act on Virtual Currency Providers (572/2019), which came into force in Finland on May 1, 2019. This Act places virtual asset service providers (VASPs) under the supervision of the Finnish Financial Supervisory Authority (FIN-FSA) and subjects them to AML/CFT obligations akin to traditional financial institutions.