The Financial Supervisory Authority of Norway is enforcing new money laundering regulations that apply to crypto exchange and storage providers in the country. The law will go into effect on Oct. 15 and will affect companies established in Norway including branches of overseas companies.
New Rules Effective Oct. 15
Finanstilsynet, the Financial Supervisory Authority (FSA) of Norway, announced Thursday that the country’s Ministry of Finance has established new money laundering regulations which apply to “Norwegian providers of virtual currency exchange and storage services.”
While the new rules will go into effect on Oct. 15, companies have until Jan. 15 next year to comply. “The law applies to reporting companies established in Norway, including branches of foreign companies,” the regulator clarified, adding:
Finanstilsynet will ensure that virtual currency exchange and storage providers comply with the money laundering rules. However, FSA does not have any tasks related to the monitoring of other areas of these providers, such as investor protection.
Affected Crypto Providers
The obligations under the new Money Laundering Act apply to crypto storage services and providers offering exchange services between any cryptocurrencies and fiat currencies, such as the Norwegian kroner.
The law also applies to “platforms that facilitate trading and exchanges by connecting buyers and sellers,” Finanstilsynet wrote, emphasizing:
Exchanging between different types of virtual currencies (eg from bitcoin to ethereum) is not included.
The regulator detailed that firms storing private keys on behalf of customers are considered to be involved in “the transfer, storage or purchase of virtual currency” and are therefore included in the new regulations. However, “Storage solutions that do not store private cryptographic keys (often referred to as non-custodial wallets) are not covered by the regulations.”
Impact on Customers
Under the new rules, affected providers must register with Finanstilsynet and provide necessary documents, the agency described, noting:
Consequently, customers must expect to identify and receive questions such as the purpose of a transaction or the origin of funds, etc.
The rules also impose reporting requirements on crypto service providers. However, “Individuals who buy or sell their own virtual currencies for private purposes” and those who occasionally “assist friends and acquaintances with the purchase and sale of virtual currencies” will not be subject to the reporting requirements under the new money laundering rules, the regulator detailed.
What do you think of Norway’s new rules for crypto providers? Let us know in the comments section below.
Images courtesy of Shutterstock and Finanstilsynet.