In a bid to curb money laundering the Norwegian Financial Supervisory Authority has released new regulations.
The new laws which come into effect on 15 October will affect firms established in Norway plus their branches oversee. To ensure the firms comply with the new laws, the FSA will be the only body that is in charge of monitoring the compliance of the firms. On further explaining the new law the FSA said the regulations would affect cryptocurrency exchanges operating in Norway alongside companies offering storage services.
In detail, the new Money Laundering Act will especially affect exchange offering a platform which connects buyers and sellers. One such platform in operation is the Norwegian kroner. Further on companies providing private key storage services to their clients also have to comply with the new law. This is because the storage companies offering storage services are directly involved in the purchasing of crypto. For one to complete a successful transaction in crypto, the keys are an essential factor in the purchase. With that said the companies offering storage services would be in the same class alongside crypto exchanges and have to comply with the new Money Laundering Act.
The above firms have to register with the Finanstilsynet first while proving essential documents. Similarly, the new rules require crypto exchanges to report to the Finanstilsynet. On the other hand, their clients will have to answer some questions such as the source of their funds and the purpose of the transaction.
Transactions Exempted from the New Law
Although the new law affects players in the cryptocurrency industry individuals crying out their transactions, don’t have to comply with the new law. Similarly, those helping their friends sell or buy crypto are not subject to the new law requiring them to report such transactions. In the same fashion storage firms that do not store private cryptographic keys are also exempted from the new Money laundering law. Moreover, the FSA did not outline any rules that will affect other services provided by the above firms.
As Norway sets its new Money Laundering law in action Europeans officials are of the opinion that they shouldn’t rush to regulate the crypto industry. During a recent meeting in Vienna, Finance ministers agreed to wait for the release of the market analysis before making before deciding on the next steps. The European Authorities are the ones doing the market analysis. But in Norway companies affected have until January 15, 2019, to comply with the law.