Norway Issues New Crypto Exchange Money Laundering Rules. Norway is one of the growing numbers of nations exploring the viability of a central bank cryptocurrency. With Anti-money laundering (AML) legislation already in place. The law demands that those offering financial services must also follow Know Your Client (KYC) practices.
In order to control money laundering, Norway’s Financial Supervisory Authority has established new rules. This will apply to cryptocurrency storage providers and exchanges throughout the country. These laws will go into effect on the 15th of October this year.
The Norwegian Financial Supervisory Authority (FSA) is enforcing the regulations as part of a government. This push to ensure that Norwegian cryptocurrency exchanges and overseas exchanges operating in the country. The regulator added “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.”
Impact due to the Act:
Norway Issues New Crypto Exchange Money Laundering Rules. Under the new Money Laundering Act, the obligations will apply to cryptocurrency storage services as well as providers offering exchange services between any digital asset and fiat currencies, including the Norwegian Kroner.
According to the regulator, the firms storing private keys for customers will also be affected. This is because they are considered to be involved in “the transfer, storage or purchase of virtual currency.”
However, “Storage solutions that do not store private cryptographic keys are not covered by the regulations,” such as individuals who buy or sell their own virtual currencies for private purposes. In addition, those who assist friends and acquaintances with the purchase won’t be subject to the FSA’s new reporting requirements. This includes sale of virtual currencies.
How customers will be affected:
Due to these new rules, all affected providers have to register with the regulator and provide all relevant and necessary documents. Regulators added that customers must answer questions about the origin of the funds and details of the transactions. Finanstilsynet noted that “Consequently, customers must expect to identify and receive questions such as the purpose of a transaction or the origin of funds, etc.”