Åland Islands

## Report: Retail Cryptocurrency Trading Status in Åland Islands

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

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### Retail_Trading_Status

**Identified Status:** Allowed-Regulated

**Detailed Narrative Explanation:**

The Åland Islands, as an autonomous region of Finland, are subject to Finnish national law and, by extension, European Union regulations concerning financial markets and virtual currencies. Finland has established a regulatory framework for cryptocurrency trading, primarily focusing on Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements. This means that while individuals in the Åland Islands are permitted to buy, sell, and hold cryptocurrencies, the platforms and service providers they use must adhere to specific Finnish and EU regulations.

The primary regulatory body overseeing virtual currency providers in Finland, and therefore in the Åland Islands, is the Finnish Financial Supervisory Authority (FIN-FSA). The Act on Virtual Currency Providers (572/2019) came into force in Finland in 2019. This act implemented the EU's Fifth Anti-Money Laundering Directive (AMLD5) and requires virtual currency providers to register with the FIN-FSA and comply with AML/CFT obligations, including customer due diligence (KYC) procedures. These providers include cryptocurrency exchanges, custodian wallet providers, and issuers of virtual currencies.

Furthermore, the European Union's Markets in Crypto-Assets Regulation (MiCA), which is progressively coming into effect, will provide a more comprehensive and harmonized regulatory framework for crypto-assets across all EU member states, including Finland and consequently the Åland Islands. MiCA aims to enhance investor protection, market integrity, and financial stability concerning crypto-assets.

Therefore, retail trading of cryptocurrencies in the Åland Islands is allowed but operates within a regulated environment. Individuals can engage in these activities, but the entities facilitating such transactions are under supervisory oversight and must comply with stringent regulatory requirements. General warnings regarding the risks associated with cryptocurrency investments, such as volatility and potential for fraud, are also periodically issued by both Finnish and EU authorities.

**Specific, Relevant Text Excerpts and Sources:**

*   **Source 1: Finnish Financial Supervisory Authority (FIN-FSA)**
    *   **Excerpt (Summary):** The FIN-FSA is responsible for the registration and supervision of virtual currency providers in Finland. These providers must comply with the Act on Virtual Currency Providers, which includes requirements related to customer due diligence, risk assessment, and reporting obligations to prevent money laundering and terrorist financing. The FIN-FSA maintains a register of supervised entities.
    *   **URL:** [https://www.finanssivalvonta.fi/en/](https://www.finanssivalvonta.fi/en/) (General website. Specific documents on virtual currencies are available through their search or publications section). A more direct link to virtual currency provider information: [https://www.finanssivalvonta.fi/en/financial-market/fintech/virtual-currency-providers/](https://www.finanssivalvonta.fi/en/financial-market/fintech/virtual-currency-providers/)

*   **Source 2: Act on Virtual Currency Providers (572/2019) - Finland**
    *   **Excerpt (Summary of Section 3):** "This Act applies to virtual currency providers. ‘Virtual currency provider’ means: 1) a virtual currency exchange service; 2) a custodian wallet provider; and 3) an issuer of a virtual currency." This Act lays down the obligations for these entities, including registration with the FIN-FSA and adherence to AML/CFT rules.
    *   **URL:** [https://finlex.fi/en/laki/kaannokset/2019/en20190572.pdf](https://finlex.fi/en/laki/kaannokset/2019/en20190572.pdf)

*   **Source 3: European Securities and Markets Authority (ESMA) on MiCA**
    *   **Excerpt (Summary):** The Markets in Crypto-Assets (MiCA) Regulation introduces a harmonised regulatory framework for crypto-assets and related services in the EU. It aims to protect investors, preserve financial stability, while allowing innovation and fostering the attractiveness of the crypto-asset sector. MiCA will apply to issuers of crypto-assets and crypto-asset service providers (CASPs).
    *   **URL:** [https://www.esma.europa.eu/policy-activities/crypto-assets-and-blockchain/markets-crypto-assets-regulation-mica](https://www.esma.europa.eu/policy-activities/crypto-assets-and-blockchain/markets-crypto-assets-regulation-mica)

*   **Source 4: Government of Åland**
    *   **Excerpt (Contextual Information):** While the Government of Åland has autonomy in certain areas, financial regulation largely aligns with Finnish national law due to Åland's status as a region of Finland. Specific deviations in financial services regulation are uncommon, especially concerning EU-level directives.
    *   **URL:** [https://www.regeringen.ax/](https://www.regeringen.ax/) (General website for the Government of Åland. Specific financial regulations would typically redirect to or reference Finnish legislation).

**Conclusion:**

Based on the regulatory framework established by Finland and the overarching EU directives, particularly AMLD5 and the incoming MiCA regulation, retail cryptocurrency trading in the Åland Islands is **Allowed-Regulated**. Individuals can participate in the crypto market, but service providers are subject to registration, supervision, and stringent KYC/AML requirements.