The cryptocurrency industry has recorded another win. Finland recently approved the activity of five crypto service operators. This is a significant step forward as Finland can now become one of the cryptocurrency heavens globally.
Crypto service operators
Crypto service operators are becoming a significant part of the global business ecosystem. The more countries start adopting regulations that coordinate the activity of such enterprises, the more cryptocurrency activity rises.
What Finland did was, it tasked the Financial Supervisory Authority (FIN-FSA) to draw a set of regulatory requirements. If crypto service operators meet these requirements, they gain the right to operate on the territory of the country.
In order to regulate the activity of crypto service operators, the FSA came up with a detailed set of requirements.
These requirements are of varying nature. The most important ones are related to anti-money laundering (AML) policies and compliance. Money laundering is one of the biggest concerns when it comes to cryptocurrencies. Unfortunately, according to a recent Europol investigation, Bitcoin is still the preferred payment method for crypto criminals.
In order to protect the country and the public from such illegal activity, the FSA requests all crypto service operators to go through an approval process with the AML department.
Other than money laundering clauses, the regulatory requirements include sections on financial terrorism as well. Last but not least, all crypto service providers are required to detail how their customers will be protected from illicit activity related to their crypto assets.
What Finland is doing is impressive, as the country is actively looking to create a rigid regulatory framework, which will support the growth of the cryptocurrency industry.