New rules for crypto services in Norway

The Norwegian Financial Conduct Authority is introducing new anti-money laundering rules for cryptocurrency exchange and custody services operating in the country. The law will come into force on October 15 and will apply to companies registered in Norway, including branches of foreign companies.

On Thursday, Finanstilsynet (FSA), the country's financial watchdog, announced that Norway's Ministry of Finance has developed new anti-money laundering rules that will apply to "Norwegian virtual currency exchange and custody service providers."

The new rules will come into force on October 15, but companies will have until January 15 next year to meet the legally required conditions. “The law applies to companies established in Norway, including branches of foreign companies,” the regulator clarified, adding:

Finanstilsynet ensures that companies providing virtual currency exchange and storage services follow anti-money laundering policy rules. However, the FSA does not have any role in monitoring other activities of these companies, such as investor protection.

Who will be affected by the new rules?

Under the new Money Laundering Rules, obligations will be imposed on companies offering services for storing and exchanging cryptocurrencies for fiat currencies such as Norwegian krone.

“The rules also apply to services that facilitate trading and exchange by providing buyers and sellers with a platform for these purposes,” Finanstilsynet emphasized. The FSA also states:

The rules will not apply to exchange services between different types of virtual currencies (for example, Bitcoin and Ethereum).

The regulator clarified that firms holding private keys on behalf of clients are considered to be involved in the “transfer, storage or purchase of virtual currency” and are therefore included in the new rules. However, “data storage solutions that do not store private keys (so-called non-custodial wallets) are not regulated.”

Impact on customers

Under the new rules, companies covered by them must be registered with Finanstilsynet and provide the necessary documents. 

The FSA noted that

Consequently, their clients will need to be prepared to answer questions about the purpose of the transaction or the origin of funds, etc.

New rules for crypto service providers will also require reporting.. However, “individuals who buy or sell their own virtual currencies for personal purposes” and those who from time to time “help friends and acquaintances buy and sell virtual currencies” will not be subject to reporting requirements under the new money laundering rules, the regulator clarifies.

According to https://news.bitcoin.com