In Finland, Banks say goodbye to Prasos Oy.
March 13, 2018 6:11 am,
As said by reports, cryptocurrency exchange and crypto wallet services provider Prasos Oy, in Finland is one step from being collapsed, as most Finnish banks will no longer conduct business with them. This Finnish company is now left with just one bank account.
This cryptocurrency exchange was founded in 2012. It has seen a ten-fold spike of transaction volumes reaching $185 mln in 2017, which became a subject of concern among the banks and for this reason, the company fears shut down.
Finnish banks do not have a codified set of regulations surrounding cryptocurrencies and the anonymous nature of cryptocurrency transactions could potentially run afoul of current Finnish anti-money laundering laws (AML).
As a result, four banks; S-Bank, the OP Group, Saastopankki, and Nordea Bank AB closed Prasos Oy’s accounts in 2017. But representatives from the four banks have refused to comment on an individual customer relationship. Presently, Prasos’ website shows it can still receive funds in its account at POP Bank.
For now, Prasos has to manage all its clients’ transactions through one bank.
We have only heard Henry Brade, the Chief Executive Officer of Prasos, state that the growth of “international transaction volumes” has begun to “disturb banks”.He further added,“We’ve realized that the growth in international transaction volumes started to disturb the banks. Along the way, we’ve been given very little information by the banks on what we could do to solve the problem.” He, with this words, states that Prasos has sought to take greater steps to ensure regulatory compliance and that, they’ve created identification practices, which they will take into use in March, and which comply fully with anti-money laundering laws and regulations, even though authorities do not even require this from them as their business is not under regulatory obligations.
Finally, he says “The risk is that we’ll see our last bank account closed before we can get the next one opened. That would freeze our business.”
However, there is no standing law in the nation that tells how banks should treat cryptocurrency dealers. Nevertheless, there are anti-money laundering rules that demand that lenders must know their customers as well as the origins of the money they handle. A unique feature of cryptocurrencies is the anonymity they offer, which pose danger for banks. Finland’s Financial Supervisory Authority does not regulate cryptocurrency trading, so it is solely the banks’ initiative as they try to adhere to anti-laundering rules, which require them to know their customers and the origins of their money.
Get yourself updated on Finnish cryptocurrency industry a bit more by reading this too: https://www.coindesk.com/finland-releases-new-guidelines-for-storage-of-confiscated-bitcoins/