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Crypto Exchanges& Regulation in Finland

Top exchanges in Finland by Coincub criteria
Article review author
Jonathan Lea
Finland head image

Crypto Country Rating: 6.9/10

8/10
Institutional acceptance
Progressive outlook and large fintech economy
8/10
Exchanges & Wallets availability
All leading exchanges available
7/10
Government regulation
Light touch, with reasonable tax laws
5/10
Defi acceptance
DeFi still a matter of debate
7/10
Financial services
Conservative attitude to providing crypto services
8/10
Transparency
High levels of compliance and regulation
6/10
Spending crypto
Underdeveloped spending environment
7/10
Banks activity in crypto
Low involvement in crypto from banks

Bitcoin and crypto trading in Finland

Spend Bitcoin and cryptocurrency trading in Finland

The crypto economy in Finland is open and progressive, with a positive outlook towards cryptocurrency and blockchain. Spending your crypto, however, is not that easy. There are few directly participating stores and outlets. Some global brands available in Finland that accept crypto, as Microsoft and Gyft. Otherwise, options for spending include crypto debit cards that convert crypto to fiat.

Law and crypto trading in Finland

Finland has access to all the leading exchanges. The population in general shows high volumes of trading, and many hold cryptocurrency. Finland’s Financial Supervisory Authority (FIN-FSA) regulates the cryptocurrency sector. This includes all crypto exchanges, crypto deposit providers and cryptocurrency issuers operating in the country.

Paying tax on my crypto in Finland

Crypto investment gains are taxed as capital income.
The profits you make from trading are usually taxed in two cases: when you cash out, and when you use crypto to buy stuff. Sometimes, exchanging one type of crypto for another (eg BTC for ETH) is taxable as well.

No matter what, you need to declare your gains to the Finnish Tax Administration. Documenting all transactions is an absolute must. Any good exchange should be able to provide your transaction records to you.

Tax relief, changing residency and gifting crypto in Finland

In Finland, crypto is VAT exempt. Tax is only due for the gains from online trading. Crypto is taxed when it is exchanged (eg BTC to ETH), traded, or used as a form of payment.

There is good news – holding the cryptocurrency for 12 months or more may provide a discount. If you sell your crypto at a loss, you’ll make a capital loss. This can offset the capital gains made in the same year or a later year, possibly lowering your tax bill.

Finland crypto mining regulations

Thinking of mining crypto? It’s a highly technical and expensive activity at the best of times, but it is perfectly legal in Finland. Remember – mining requires lots of energy, and your hard earned mining gains are taxable. 

Finland’s financial outlook on crypto

A huge crypto research programme is under way in Vietnam after Vietnam’s Ministry of Finance initiated an in-depth study of cryptocurrencies, with a view to achieving legislative reform for the industry. With much about crypto still illegal – such as buying products and services with it – it is no surprise that the financial establishment is looking for guidance. However, as yet the conclusions to the study and any proposals and recommendations are not forthcoming. We hate to say it again but….’watch this space’.

Planning your retirement and investing in cryptocurrency in Finland

Cryptocurrency is a big investment play among an increasing amount of the population. That said, most organizations that offer long-term financial planning consider crypto too risky. Despite positive attitudes from the government, traditional long-term investment organisations may steer clear. It is likely that any investment plan would probably carry higher fees due to the higher risks involved.

Finland’s financial services’ outlook on Bitcoin and crypto economy

Finland is not stranger to the cutting edge. The country has a developed IT and fintech economy. Finland is also where the Nokia headquarters are located. You can thanks the Finns for your dearly departed brick phone.

Gone, but not forgotten.

There seems to be a positive attitude towards blockchain tech. The Finnish Tax Authority is enthusiastically issuing lots of guidance on taxation.

The Finnish customs authority recently had to sell off nearly 2,000 bitcoins seized in criminal investigations – that’s a lot of cell phones. The country’s central bank, however, views cryptocurrencies as high-risk assets – not real money.

The financial establishment remains conservative on providing crypto services. Government agencies and the financial regulator are warning consumers about the price volatility and risks.

Finland and DeFi, the latest developments

Central banks around the world are all investigating digital currency, and Finland is definitely on board. Many start-ups are looking at deploying decentralized technology across a range of sectors, not all of them financial.

DeFi’s future within the Finnish national economy is still debatable. It’s unlikely to play a big role in the future.

Crypto security, transparency and compliance in Finland

Cryptocurrency-based firms operating in Finland are required to register with FIN-FSA. Most legislation comes within the fifth EU Directive on fighting money laundering. Crypto related services have to comply with laws related to a company’s reliability, and protection of client funds. Cryptocurrency providers that do not comply with statutory requirements cannot pursue business activities. Providers must comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations.

On an individual level, you will have to offer up personal details. Crypto trading is no longer an anonymous activity, contrary to some misconceptions. Protecting your crypto against loss or theft requires that you check the security record of the services. Remember – personal protection against loss is not covered. Some exchanges do have insurance against fraud or hacking, but it is up to you to vet products and exchanges.

Helpful?
FAQ

New to crypto? Here’s our guide!

FAQ Image #1 01 Why Bitcoin? It seems like the buzz around Bitcoin just keeps growing. Bitcoin is a constantly evolving technology with a passionate community. What is it about the digital asset that makes it such a controversial topic and attractive investment?
FAQ Image #2 02 How to Get Started with Bitcoin It can be difficult to get past the technical jargon surrounding bitcoin (BTC) and other cryptocurrencies in order to figure out how you can buy and store them. Beginners can purchase Bitcoin, for example, on many exchanges using fiat currency like U.S. Dollar, Euro or British Pound.
FAQ Image #3 03 Blockchains 101 Blockchains are a type of database where data is stored in blocks that are chained together. As new data comes in, it is entered into a block, which is then chained to the previous block. The Bitcoin blockchain serves as a ledger that records every Bitcoin transaction in history.
FAQ Image #4 04 Bitcoin in the Real World Ok - you’ve found an exchange, bought your Bitcoin, and stored it safely. What’s next? By now you can buy just about anything with Bitcoin if you try hard enough, from Amazon gift cards to an old master painting. You can also convert your BTC to fiat with ATMs, an exchange, and more.

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