Cryptocurrency is legal in Finland, and there are regulatory bodies nationwide. The Act on Virtual Currency Providers, governed by the Financial Supervisory Authority (Fin-FSA), went into effect on May 1, 2019. This act requires custodian wallet providers, currency issuers, and virtual currency exchanges to register and abide by certain restrictions. Our list of approved crypto exchanges in Finland, which we introduced in this article, contains the best platforms that comply with regulations.
According to the EU’s Fifth Anti-Money Laundering Directive (5th AMLD), these laws include guaranteeing dependability, appropriate handling of client funds, and compliance with anti-money laundering (AML) and Combating the Financing of Terrorism (CFT) measures.
Finland’s open-minded approach to cryptocurrencies encourages advancements in blockchain technology. The registration requirements for all virtual asset service providers (VASPs) with FIN-FSA ensure a safe and legal cryptocurrency ecosystem. The impending European Union Markets will further strengthen Finland’s dedication to promoting developments in the cryptocurrency and blockchain industries in Crypto-Assets Regulation (MiCA).
Finland Crypto Tax Laws: Crypto profits are taxable in Finland under the jurisdiction of the Finnish Tax Administration, which classifies them as capital income. Profits from the purchase, sale, or exchange of cryptocurrencies are subject to capital gains tax, levied at 34% on any excess and 30% on capital income up to €30,000. Examples of taxable events include exchanging one cryptocurrency for another on crypto trading platforms in Finland, utilizing it for purchases, or converting it to fiat currency (like euros).
The Finnish Tax Administration must be notified of any cryptocurrency gains made by everybody who wants to make a cryptocurrency investment in Finland and maintain thorough records of every transaction. Taxes do not apply to the ownership of cryptocurrencies but to any profits from usage or sale. Crucially, trading losses can be deducted from capital gains, potentially lowering taxes due.
Source: https://coingape.com/cryptocurrency-exchanges/best-crypto-exchanges-finland/