Norway Steps Up Crypto Regulations for Crypto Service Providers
Norway’s Financial Supervisory Authority (FSA) introduced new Anti-Money Laundering regulations to Norwegian providers of Virtual Currency exchange and storage services.
Finanstilsynet, the FSA of Norway is enforcing new AML regulations that will go into effect on October 15. However, companies have until January 15, 2019, to comply. This regulation will be applicable to all the branches of overseas companies. Finanstilsynet quotes,
Finanstilsynet will ensure that virtual currency exchange and storage providers comply with the money laundering rules. However, FSA does not have any tasks monitoring other areas of these providers, such as investor protection.
The regulations are applicable to service providers offering exchange services between fiat and cryptos, like the Norwegian Krone. It tells the law will also apply to platforms facilitating trade and crypto exchanges. They quote more saying,
Exchanging between different types of virtual currencies (e.g. from bitcoin to
Ethereum) is yet to include.
The regulator avoids confusion by giving the clarification. The regulations applicable to exchanges with custodial wallets storing private cryptographic keys. While the exchanges with non-custodial wallets were let off.
So the companies and service providers that fall into the category have to register with the Finanstilsynet and comply with the money laundering acts. However, the people who buy and sell their ow VCs and assist neighbors or family time to time are not bound by these regulations.
The service providers will have to provide details about data about their management teams, services, and transaction details and report all suspicious transactions. Regulators will not monitor the protection of the investors.
Norway has been a haven for many crypto miners due to its favorable conditions and top players have set up shop there. Cheap hydro-electric energy has made it viable for these players to start
mining here. Norway provides a 7.1 cent per kilowatt hours as compared to Iceland’s 8 cents and European 11 cents. Reasons like these and the sensible regulations have made crypto-miners and crypto-enthusiasts to move to Norway.
Countries around Norway, like Iceland and Switzerland, have been enforcing regulations to help flourish the innovation and curb scams simultaneously. Norway clearly isn’t the first to regulate cryptocurrencies, South Korea recently passed a bill to regulated
cryptocurrency exchanges and ICOs. The countries all around the world are taking the necessary steps to move forward in the revolution of Blockchain and Cryptos.