Fennoscandic comparison on KYC obligations of a virtual currency provider
| Date | 04 July 2023 |
| Pages | 167-180 |
| DOI | https://doi.org/10.1108/JMLC-12-2022-0168 |
| Published date | 04 July 2023 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Kristian Keskitalo,Jaakko Väyrynen |
Fennoscandic comparison on KYC
obligations of a virtual currency
provider
Kristian Keskitalo
Faculty of Law, University of Helsinki –City Centre Campus,
Helsinki, Finland, and
Jaakko Väyrynen
Settle Group AS, Oslo, Norway
Abstract
Purpose –This paper aims to analyse the virtual currency regulation especially in Finland, Sweden and
Norway. Different memberstates had a bit differently incorporated regulation ofAMLD5. Finland has gone
the furthestin regulationand even issuers of virtual currency are under the Finnish regulation.
Design/methodology/approach –In one hand, the studyapproach is legal dogmatics, but in other hand
it is comparativelegal research. Both approachescan be found in this paper.
Findings –The EEA is going from a more fragmented regulatory landscape based on 5th Anti-Money
Laundering Directive to a more uniform regulatory approach provided by a legislative package that
regulates crypto assets more broadly, coupled with an overhaul of the anti-money laundering rules,
bringing them into a single European rulebook. Finland has taken a step further in this matter. Therefore,
it would be reasonable for the AMLD5 scope to be expanded in this respect. It is a welcome development
that the regulation will be unified and that investor protection will be better taken into account in the
future as well.
Originality/value –This paper gives a picture of what kind of challenges is there in Fennoscandic in
terms of money laundering regulation of virtual currencies. On the other hand, this paper brings into the
discussion the rather clever solutions of Fennoscandic (especially Finland) regarding money laundering of
virtualcurrencies.
Keywords KYC, Cryptocurrency, Know your customer
Paper type Research paper
1. Introduction
Virtual currencies [1] are no longer a niche sparking the interest of only the most hardcore
tech enthusiasts, but have swiftly gained popularity amongst the general public,leading to
the need to mitigate the ambiguities and risks associated with virtual currencies through
legislation. In some European Union (EU) (or European Economic Area) member states [2],
the regulatory efforts have been initiated by extending the scope of current anti-money
laundering (AML) legislation to also cover doing business with virtual currencies more
widely –this development is not a fragmented effort of separate member states but the
© Kristian Keskitalo and Jaakko Väyrynen. Published by Emerald Publishing Limited. This article is
published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce,
distribute, translate and create derivative works of this article (for both commercial and non-
commercial purposes), subject to full attribution to the original publication and authors. The full
terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
Virtual
currency
provider
167
Journalof Money Laundering
Control
Vol.26 No. 7, 2023
pp. 167-180
EmeraldPublishing Limited
1368-5201
DOI 10.1108/JMLC-12-2022-0168
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
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