The cryptocurrency Bitcoin logo on a smartphone. LEHTIKUVA
- Next Article Mäkelänkatu project headlines major street upgrades in Helsinki this year
The EU’s Markets in Crypto-Assets (MiCA) Regulation has fully entered into force, marking a shift in the oversight of crypto-asset services across the European Union. In Finland, the Financial Supervisory Authority (FIN-FSA) says the changes bring tighter requirements for service providers but warns that risks for consumers remain high.
Finland has adopted one of the shortest transitional periods in Europe. Existing crypto service providers operating in the country have until 30 June to apply for authorisation under MiCA rules.
So far, the FIN-FSA has received eight such applications.
“The regulation is now in place, but the situation across Europe is still fragmented,” said Tero Kurenmaa, Director General of the FIN-FSA, at a press conference on Thursday. “Consumers purchasing crypto-assets from outside Finland should be cautious, especially as regulatory obligations vary during the transition.”
MiCA introduces standardised requirements for the first time in the crypto sector, aligning it more closely with traditional financial services. These include obligations related to management competence, own funds, data transparency and cybersecurity.
Thirteen virtual currency providers have been registered in Finland. To continue operations beyond June, they must secure full authorisation under the new framework.
Maria Rekola, Head of Division at the FIN-FSA, said that although MiCA improves regulatory clarity, it does not eliminate core risks.
“A large share of the contacts we receive about crypto-assets involve fraud,” Rekola said. “MiCA does not require providers to assess whether a product is suitable for the customer, and consumer protections do not apply to services purchased outside the EU or EEA.”
MiCA also does not extend coverage from the Investors’ Compensation Fund to crypto products, meaning users bear the full risk of market losses, scams or cyberattacks.
In addition to crypto oversight, the FIN-FSA also reviewed the state of Finland’s fund market. At the end of 2024, the total net asset value of Finnish investment funds stood at €205 billion. Real estate funds faced particular pressure amid liquidity challenges and declining valuations.
Since 2023, real estate funds have been allowed to reduce the frequency of redemptions and apply broader liquidity management measures. These changes followed net redemptions and negative revaluations across the sector.
By the end of the first quarter of 2025, ten real estate funds had either suspended or restricted redemptions.
“The FIN-FSA’s role is to ensure investor protection and market stability,” said Marko Hovi, Head of Division. “This year, our focus will be on liquidity, debt levels, and valuation practices. New EU-level rules are also in development.”
The FIN-FSA also addressed risks in the banking sector, with particular focus on exposure to the real estate market. Supervisory attention remains on the financial soundness of banks and other institutions under its remit.
The authority confirmed that financial supervision will continue to concentrate on structural vulnerabilities and emerging risks across sectors, including digitalisation, capital adequacy, and resilience to macroeconomic shocks.
HT
- Next Article Mäkelänkatu project headlines major street upgrades in Helsinki this year
Source: www.helsinkitimes.fi
