Saturday, January 18, 2020

Prasos, one of the first companies in Europe registered as a cryptocurrency operator

Key facts:
Prasos is a leading crypto broker in the Nordic countries that operates with the Coinmotion service.
Prasos has more than 80,000 clients and its services are Coinmotion.com, Bittiraha.fi and Denarium.com.

The Finnish Financial Supervisory Authority (FIN-FSA) has published a register of cryptocurrency service providers that comply with the European Union's money laundering prevention standards. From November 1, 2019, only those suppliers of digital currencies that fully comply with the legal requirements may carry out their activity in Finland. In the near future all cryptocurrency operators who want to offer their services to European clients must be registered with the corresponding financial authority in their country.

Finland is the first country in the EU to implement a registry that meets the requirements of the 5th Directive (EU) 2018/843 whose deadline for transposition is January 2020, the date by which all member states must establish a process of registration similar to Finnish. Following the example of Finland, the United Kingdom, through the Financial Conduct Authority (FCA) in the United Kingdom and the DNB of the Netherlands, are already working on initial proposals in which the standards to be met will likely be very similar to those implemented in Finland.

The new directive improves customer safety in this market as it requires companies to meet certain requirements in customer asset management, prevention of money laundering and reliable management. In Finland there are already 5 operators that meet the necessary requirements and Prasos, the leading cryptocurrency broker in the Nordic countries that operates with the Coinmotion service, is the only one of these 5 suppliers that also has a Payment Institution License.

The directive on prevention of money laundering and terrorist financing will apply to all suppliers operating within the European Union. Companies in the sector in general have reacted positively to this new regulation, since it will put more pressure on those suppliers that operate outside the EU and serve European customers without any standard related to Knowing Your Customer (KYC) or with the money laundering prevention (AML).

The Director of Regulatory Compliance with Prasos, Jukka Karhapää, considers it as a positive change:

“For the end user, the registry provides transparency in the use of cryptocurrency trading services. Above all, the requirements to meet customers to assess potential risks related to money laundering and terrorist financing benefit both consumers and businesses in this industry. In addition, it is helpful to increase the confidence and reputation of the general public in the growing cryptocurrency sector. ”

Please check the official announcement of the FIN-FSA here.

About Prasos:

Prasos Ltd focuses on providing secure cryptocurrency exchange and storage services. The company was founded in Jyväskylä (Finland) in 2012 and reached 4.7 million euros in revenue during the last year. He has carried out 4 rounds of financing obtaining 2.89 million euros of investment.

Prasos has more than 80,000 clients and its main services are: Coinmotion.com, Bittiraha.fi and Denarium.com. More information can be found at Prasos.fi