Virtual Currency Exchanges Required to Register with the Danish FSA

As of 10 January 2020 providers of virtual currency and fiat currency exchanges and virtual wallets must be registered with the Danish Financial Supervisory Authority in accordance with the Money Laundering Act to do business in Denmark. Upon registration, they will be subject to the requirements of the Money Laundering Act which include:

• making a risk assessment in relation to AML for the business;

• having policies, business procedures and controls to prevent money laundering and terrorist financing;

• conducting KYC in relation to all customers, including any enhanced KYC procedures;

• continuously monitoring the business relationships;

• conducting investigations of all complex and unusually large transactions, as well as all transaction patterns and activities that do not have a clear economic or legal purpose, to determine whether there is reasonable cause to suspect that they are or have been linked to money laundering or terrorist financing; and

• notifying the AML Secretariat of the State Prosecutor for Special Economic and International Crime (SØIK) if becoming aware of, suspecting or having reason to suspect that a transaction, funds or activity has or has been linked to money laundering or terrorist financing.