Norway Establishes New Rules for Crypto Service Providers
Crypto exchange and storage providers in Norway are about to receive new regulations that can affect their daily activities, reports Nyecasino website.
New money laundering regulations are being enforced by The Financial Supervisory Authority of Norway. Branches of overseas companies and companies based in the country will be affected by the new regulation starting this year’s October 15.
What are the new rules?
The Norwegian FSA ( Financial Supervisory Authority) has announced on Thursday that new money laundering regulations are being put into place by the country’s Ministry of Finance. All of these changes will definitely affect all of the Norwegian companies who provide exchange and storage services for Digital currencies.
However, the companies do not need to worry about the regulations starting in 1 week, because that would be almost impossible for them to prepare. Even though the rules will go in effect on Oct 15th, the companies will have 5 months to prepare with their compliance. The regulators have already announced that this is a regulation not only for the Norway based companies, but also for every other company branching within the country, also adding that investor protection has not been specified in the regulations; however, they will strictly monitor the compliance of the companies regarding the exchange and storage changes.
If you know what Norwegian kroner is, then you are aware of what a fiat currency is. Exactly those fiat and cryptocurrency exchange and storage service providers will be affected by the new Money Laundering Act. Also, everyone that provides services of trading an exchanging by connecting sellers to buyers will be affected by the regulation; the only exception will be crypto exchanges.
What about the customers?
The new act also features the responsibility of the affected providers to register with Finanstilsynet in order to be considered as regulated. They will also be required to prove all of the necessary documents. The agency also notes that customers will need to start expecting questions regarding the origins and purposes of their funds.
The agency has also specified that every crypto provider that has been registered as a company will have to do regular reports about their activities, they will need to provide evidence of them actually assisting and servicing their customers. However, please note that these types of regulations will not come into effect for a self-servicing trader, who does all of their tradings on their own without the assistance of the company they are registered with. They and those who assist family members or friends with trading will not be asked to disclose any information about their activities with their peers or their accounts. That would just be a violation of a person’s right to privacy, wouldn’t it?