Finland and Cryptocurrency
Finland Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology
It is legal in Finland to buy, sell and use cryptocurrency. On October 4, 2018 the Government of Finland released the Government Proposal 167/2018 (“HE 167/2018”) that proposes to regulate cryptocurrency providers.[1] The Act on Virtual Currency Providers went into effect on May 1, 2019.[2]
Digital Currency – Blockchains
In accordance with the act, the Financial Supervisory Authority (Fin-FSA) will act as the registration authority and supervisory authority for virtual currency providers.[3] Registration is required for “virtual currency exchange services,” “custodian wallet providers,” and “issuers of virtual currencies.”[4] These providers must comply with certain statutory requirements, for example, “they must be reliable and able to hold and protect client money.”[5] They must also segregate client money from their own funds and comply with anti-money laundering regulations and CFT regulations.[6] The Act is based on the European Union’s anti-money laundering legislation and seeks to bring virtual currency providers within the scope of anti-money laundering regulation, in line with the 5th Anti-Money Laundering Directive (5th AMLD).[7]
P.S. Insights on Cryptocurrency Legal Issues
Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.
Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.
However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.
Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency. The globe below provides links to country-by-country summaries:
- Blockchain Technology Explained: What is Blockchain and How Does It Work?
- Legal Issues Surrounding Cryptocurrency
- Cryptocurrency and Bankruptcy
- Cryptocurrency Transactions: Multi-Signature Arrangements Explained
- Cryptographic Hash Functions
- Distributed Ledgers The technology behind Blockchain brings business opportunities and legal complexities
- Hard and Soft Forks: A Detailed and Simplified Explanation of How Blockchains Evolve
- Hash Collisions Explained
- IRS Cryptocurrency Taxation: What you Need to Know in 2020
- Merkle Trees
- Mining Explained: A Detailed Guide on How Cryptocurrency Mining Works
- Preimage Resistance, Second Preimage Resistance, and Collision Resistance
- Quantum Supremacy’s Potential Impact on Cryptocurrencies
- SHA-256
- Smart Contracts
- The History of the Blockchain and Bitcoin
- Blockchain Attacks: Is No One Safe in the World of Cryptocurrencies?
- Cryptographic Hash Algorithms: An Introduction
- Overview of the Most Common Cryptocurrencies
- Double-Spending Problem and Byzantine General’s Problem in Relation to Cryptocurrency
- IRS Cryptocurrency Taxation: What you Need to Know in 2020
- Permission and Permissionless Blockchains
- The Tor Network
- Turing Completeness and cryptocurrency
- Cryptography: Public Key Infrastructure (PKI)
- Blockchain Attacks: Is No One Safe in the World of Cryptocurrencies?
- Decentralized Governance Mechanisms
- The Dark Web and the Deep Web
- The Most Common Cryptocurrencies
- Anti-Collusion | What Is Obfuscation?
- What Is Post-Quantum Cryptography?
Podcast:
The Freeman Law Project – Cryptocurrency Regulation and Taxation: A Brief Primer
Is cryptocurrency legal in Finland?
Do you have questions about cryptocurrency, digital currencies, or blockchain technology?
Freeman Law can help with digital currencies, tax planning, and tax compliance. Contact us now to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.
[1] Upcoming Cryptocurrency Providers Act of Finland, Nordic Law, (Jan. 14, 2019), https://nordiclaw.fi/upcoming-cryptocurrency-providers-act-of-finland/.
[2] Kevin Helms, Finland Begins Regulating Crypto Service Providers, Bitcoin.com, (Apr. 27, 2019), https://news.bitcoin.com/finland-regulating-cryptocurrency/.
[3] Virtual currency providers to be supervised by the FIN-FSA – briefing for virtual currency providers on 15 May, FIN-FSA, (April 26, 2019), https://www.finanssivalvonta.fi/en/publications-and-press-releases/supervision-releases/2019/virtual-currency-providers-to-be-supervised-by-the-fin-fsa–briefing-for-virtual-currency-providers-on-15-may/.
[4] Id.
[5] Id.
[6] Id.
[7] Id.