Finnish FSA Grants Virtual Currency Provider License to LocalBitcoins

Asia Blockchain Review
November 26, 2019

The Finnish Financial Services Authority (FIN-FSA) has recently granted a virtual currency provider license to LocalBitcoins, after the company fulfilled Anti-Money Laundering (AML), Know-Your-Customer (KYC), and other requirements set by Finnish regulators.

Legal Recognition by Finnish Financial Services

According to Cointelegraph, FIN-FSA registered LocalBitcoins as a virtual currency provider, as Finnish law mandates that only licensed service providers are legally permitted to offer their virtual currency services in the country.

Prior to receiving the license, LocalBitcoins provided documents to the FIN-FSA to prove that the firm had carried out AML and KYC procedures.

The company was also required to provide documents detailing how it will safeguard customer assets, while LocalBitcoins’ key personnel and management had to meet legal criteria in order to serve their roles.

Opportunities for Crypto Businesses in Finland

LocalBitcoins CEO Sebastian Sonntag expressed his views that Finland is another country that is open to crypto businesses and could provide further opportunities to the company.

“Finland is a well-functioning society, which holds trust and confidence at high levels. At the same time, the controls in the financial sector are of particularly high quality and the position of the clients is well protected,” Sonntag said.

On the other hand, the company has been offering its services in countries that are perceived as politically unstable, such as Venezuela. However, many are questioning its position as an exchange where citizens in certain countries can exercise their financial control.

LocalBitcoins’ latest move in Finland may demonstrate that it is shifting from an unregulated exchange without KYC to becoming a regulated peer-to-peer (P2P) crypto exchange.


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