The announcement by Finland’s Financial Supervisory Authority, FIN-FSA, confirms that it will now oversee the registration and operation of the country’s cryptocurrency sector. The financial regulator stated that it would continue to be responsible for registering all cryptocurrency wallet providers, exchange platform operators, and issuers who wish to operate within its borders.

AML Laws

AML laws will be fully in force. The watchdog also highlighted the Act on Virtual Currency Service Providers. This new legislation will be in effect in the country starting May 1. The European Union’s Fifth Anti-Money Laundering Directive (AML) was the basis of the new Act. The directive of the EU was created and implemented in July 2018. It establishes a framework and oversight for crypto-based companies within the EU with the purpose of mitigating terrorist financing and money laundering.

The EU stated in a press release that it had announced the new AML framework:

“The 5th Anti Money Laundering Directive also increases cooperation and the exchange of information between AML and prudential supervisions, including with European Central Bank.”

FIN-FSA clarifies however that a company’s successful registration at the national or regional level does not give it the right to offer similar services in other EU countries based on a registration granted in a member country.

Pack out or comply

Finland’s financial watchdog does not play games. The agency demands that all crypto-based companies comply with these rules. It has a broad definition for crypto companies that includes those that concern segregation of assets belonging service providers and clients, storage and protection clients financial assets, as well as all AML/CFT rules.

To avoid confusion, the regulator announced that it would convene a briefing with all organizations involved in the crypto industry on May 15 to prevent any confusion.

The briefing will take place at the Bank of Finland auditorium in Helsinki. Here the regulator will provide information about registration deadlines, procedures that must be followed, and timelines for each procedure.

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Exchanges

Exchanges are making adjustments. LocalBitcoins, an international peer-to-peer cryptocurrency change platform, announced via a blog post last month that it would now be supervised and regulated by the FIN–FSA. The Helsinki-based crypto exchange announced that new legislation had been drafted by the Finnish Parliament to provide regulatory clarity for cryptocurrencies in the country. According to the exchange, all of these laws would improve Bitcoin’s legitimacy and credibility by boosting public perceptions about cryptocurrencies.

The exchange also stated that it was working on tools and safeguards to increase its compliance with security regulations. It also announced that it had launched a new account registration process to make it easier for customers to find suitable trading partners. It informed customers that it was working to improve its identity verification process.

FinTech Industry

A comprehensive FinTech industry. LocalBitcoins stated that regulation by the FIN–FSA will improve public perception of cryptocurrencies. It will also increase the collaboration between crypto-based organisations and traditional financial service providers in this country.

Bloomberg reported earlier this year that Parsos Oy was a Finnish cryptocurrency wallet and service provider. Several banks had reportedly refused to do business with it. According to the report, Parsos Oy’s accounts were closed by several banks in the country including the OP Group and Saastopankki as well as S-Bank and Nordea Bank AB. They were concerned about doing business with a company operating in Finland’s unregulated crypto market at the time and the possibility of violating any AML laws.

Dezentralisierte Finanzen

The planet of Decentralized Finance (DeFi) keeps growing daily. Many projects are taking advantage of this untapped market. They fundamentally bring electronic banking and their providers to the planet, with no discrimination at all. Banks usually let people down payment cash, withdraw, invest and borrow. However, those same services are increasingly being offered today by means of a decentralized infrastructure. NEXO provides been regarded as an option in the wonderful world of Decentralized financing. But is NEXO the very best on the market? Or can we find much better alternatives which are cheaper and better?

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Nexo Lending – Fast Background

Nexo is a lender that offers a crypto system for financing and borrowing. They basically provide following services:

  • Earning interest
  • Instant borrowing
  • Nexo cards for spending
  • Android & iOS apps

Very cool. But think about the downsides of NEXO?

  • They don’t keep private keys to assets
  • They possess a restricted number of cryptocurrencies
  • No conversation to customers ahead of product changes
  • Customers problems about their laggy platform

So what about diversifying? Maybe you can find cheaper alternatives out there? Needless to say there are!

Don’t place all of your cryptos with one agent.

NEXO Alternatives

What exactly are other NEXO Alternatives? When crypto exchanges achieve success, they often look for possibilities to diversify and prolong their income streams. Here’s our Top 5 set of very good options to NEXO (as a borrowing/lending platform):

  • Binance: this exchange were able to rise to fame because of their successful market penetration in various countries. Not only do they provide borrowing and lending, however they certainly are a fully fledged exchange, P2P platform, crypto education resources, and charge low fees.
  • Aave: a primary competitor to NEXO, featuring a fantastic selection of lending pools.
  • CoinLoan: an excellent platform to borrow, They provide high security protocols to provide for your cash.
  • Torque: this lender doesn’t have an array of cryptocurrencies, but promises its user never to hide fees: everything is upfront. In addition they don’t use identity checks, which protects their users’ anonymity.
  • NUO: an extremely secure platform that links borrowers to lenders. NUO is another DeFi project that runs together with the Ethereum protocol. They will have high returns, great security (Ethereum…’nough said), and is fully collateralized, so risks are lower.

Although changing platforms may seem difficult, one should always make an effort to lookout to discover the best. The lending space is continually changing, and keeping track of this side of the is always an advantage.

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