Norway Composes New Protocols for Crypto Service Providers

Norway Composes New Protocols for Crypto Service Providers

Regulation News
October 10, 2018 by XNews Editor 4
76
The Financial Supervisory Authority of Norway is implementing new money laundering regulations to Norwegian cryptocurrency exchanges and storage services in the country. The guidelines provided by the authorities will come into force on October 15 and it will impact the companies and firms established in Norway including the branches of the foreign companies. The regulator
Norway

The Financial Supervisory Authority of Norway is implementing new money laundering regulations to Norwegian cryptocurrency exchanges and storage services in the country.

The guidelines provided by the authorities will come into force on October 15 and it will impact the companies and firms established in Norway including the branches of the foreign companies.

The regulator of fInanstilsynet-the Financial Supervisory Authority of Norway further clarified the move:

“Finanstilynet will make sure that the cryptocurrency exchange and the storage providers accede with the money laundering protocols. Nevertheless, FSA is not responsible for monitoring the other areas of these storage providers like investor protection.”

The inevitabilities under the new Money Laundering move is applicable to all the virtual currency storage providers providing exchange services between any cryptocurrencies and fiat currencies as of Norwegian kroner.

The act also applies to the platforms that assist trading and exchanges by linking buyers and suppliers.

FSA said in an interview:

“Exchanging betwixt various kinds of cryptocurrencies is not included. For example, from Bitcoin to Ethereum.”  

He further added: The companies storing the private keys under the authority of the customers are intended to be involved in the storage, purchase, and transfer of the cryptocurrency and are thus considered to be a part of the new regulations. However, the exchanges that do not save the private cryptographic keys (known as non-custodial wallets) are not included in the regulations.

According to the new protocols specified in the money laundering act, the affected customers must register with FSA and are supposed to provide the neccessary documentation. The regulator explained:

“As a consequence, the customers are expected to authenticate and receive questions such as the purpose of the transaction, the origin of the capital, etc.”

However, the people who buy and sell their own digital currencies and support neighbors or friends will not be subject to reporting requirements under the money laundering regulations.

As per the new rules, the service providers are required to submit the information about their services, management team, and details of the transactions carried out and of course report all the fishy transactions.

Related posts

Add a comment

Translate »