Finnish Crypto Exchange Collapse As Banks Refuse to do Business.
March 12, 2018 4:28 pm
Exchange falls since the Banks Refused to do Business with it
Finnish cryptocurrency exchange and crypto wallet services provider Prasos Oy is getting “frozen” since most Finnish banks have rejected to conduct business with them.
Prasos, founded in 2012, has seen a massive number of transaction volumes through $185 mln in 2017 and became a subject of concern among the banks.
Finnish banks do not have any set of regulations circling cryptocurrencies, and the anonymous nature of cryptocurrency transactions could probably run of current Finnish anti-money laundering laws (AML). Due to this, four banks; S-Bank, the OP Group, Saastopankki, and Nordea Bank AB has stopped Prasos Oy’s accounts in 2017. So now, Prasos has to manage all its clients’ transactions through one bank.
Tomi Narhinen, CEO of Saastopankki said:
“In most cases, it’s practically impossible or at least tough to do business with cryptocurrency dealers and exchanges, because it can be impossible to determine the origin of the funds.”
Prasos’ CEO Henry Brade stated:
“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.”
Brade mentioned that the company has fully adapted AML measures, and it expects the authorities to form the necessary regulations.
“We’ve created identification practices, which we have taken into use in March, and they comply fully with anti-money laundering laws and regulations, even though authorities do not even require this from us as our business is not under regulatory obligations.”