According to the latest development, LocalBitcoins enters Finland with an official registration at the Finnish Financial Service Authority (FIN-FSA) as a virtual currency provider.
Finland only allows providers to operate in the country after proper registration and acceptance of the legal compliance policy.
LocalBitcoins enters Finland under KYC rules
In order to acquire the registration, LocalBitcoins was required to prove to FIN-FSA that it had implemented an adequate Anti-Money Laundering procedure. The registration comes with a mandatory know your customer (KYC) policy, along with an efficient safeguarding mechanism for the assets of the customers.
Moreover, management and key position holders were also required to fulfill certain criteria in order to be considered competent for the roles they would be serving.
Finland is known to have a high level of trust and control in the worldwide community, and by being an official virtual currency provider, it paves the way for a new business opportunity for the LocalBitcoins.
The CEO of LocalBitcoins Sebastian Sonntag stated that Finland being a highly functional society holds trust at the highest level. While also exercising control in the financial sector in order to maintain high quality and ensuring the client position I well protected.
LocalBitcoins enters Finland in a series of many since it has been previously recognized for its adoption in states which are under political turmoil like Venezuela. Though the position of LocalBitcoins as an outlet that allows citizens to circumvent the capital controls on the currency will now seem to be questioned. Evidence can be seen by having a look at the users’ preference of an alternative and possibly a much less regulated provider.
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