The reference date of the data to be collected to the first annual report is 31 December 2021, and the reporting deadline is 28 February 2022. A notice of reporting obligation has been sent to the companies separately.

At the same time, the regulator extended the scope of application of the FIN-FSA Standard 2.4 “Customer due diligence; Prevention of money laundering and terrorist financing” to cover virtual currency providers from 1 December 2019 onwards. 

The regulations and guidelines present the FIN-FSA’s regulations, guidelines, recommendations and interpretations applicable to virtual currency providers concerning the holding of client money as well as compliance with legal provisions on customer due diligence and other anti-money laundering and counter terrorist-financing legislation.

Virtual currency providers operating in the market prior to the Act coming into force must submit an application for registration with the FIN-FSA by 18 August 2019 in order that their qualification for registration can be assessed by 1 November. New providers considering the launch of activities after the entry into force of the Act may only provide services to customers after their applications for registration have been processed and approved.

Earlier this month, Finanssivalvonta, the Finland Supervisory Authority (Fin-FSA) became the registration and supervisory authority for virtual currency providers in Finland under a new law implementing the EU Fifth Anti-Money Laundering Directive.

However, the regulator stressed that the new Act on virtual currency providers, which came into force on 1 May, does not create any form of investor protection.

"The risks associated with investing in virtual currencies will therefore remain unchanged," Fin-FSA said.

From November 2019, only those virtual currency providers that meet statutory requirements will be able to trade in Finland, with non-compliance resulting in a provider being forbidden to practise and fines.

"Inclusion within the scope of regulation will require significant efforts from providers, in particular, to guarantee adequate customer identification and appropriate holding and protecting of client money," FIN-FSA said.

Exchanges, issuers, custodian wallet providers that were operating before the Act came into force have to register with FIN-FSA by 18 August 2019.

As to those providers about to launch their project, they will be allowed to trade only after their registration application has been approved. 

FIN-FSA said that the registration obligations will ensure that providers comply a host of requirements, such as AML/CFT regulation, in respect of the reliability of the provider and the holding and protection of client money. 

Anneli Tuominen, Director General of the FIN-FSA, said:

“It is good that virtual currency providers are brought within the scope of anti-money laundering regulation. Virtual currencies are… high-risk investments. Activities related to virtual currencies are of a cross-border nature, and it is therefore important to develop European-wide regulatory solutions to improve relevant investor protection.”

Members of a crime ring laundered money earned by other organised crime groups, who made their money selling drugs, by using credit cards and cryptocurrencies.