MiCA Licence in Finland

Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) established pan-European rules for crypto-asset issuers and related service providers. It regulates the issuance and public offering of crypto assets, their admission to trading, and the activities of operators providing services in the field of virtual currencies. Crypto-assets are a digital representation of value or rights that can be stored and transferred using distributed ledger technology. Blockchain is one of the most common examples of such technology, where the circulation and protection of assets are ensured by cryptographic mechanisms based on a system of public and private keys. Under MiCA, crypto-assets are conditionally divided into two groups: assets whose price is supported by pegging to another asset, right or combination thereof, and other crypto-assets without a stabilising mechanism. The first group includes asset-backed tokens (ART) and electronic money tokens (EMT). EMTs are pegged to a single official currency, while ARTs may have a broader set of references, such as a basket of currencies. The second group includes other crypto assets, including utility tokens that provide access to the issuer’s goods or services. Although crypto assets are not recognised as legal tender or financial instruments, they are widely used in investment and payment practices. The provision of crypto asset services in the European Union is only possible with a licence. In Finland, providers of such services are subject to inclusion in the public register of the Financial Supervisory Authority. Companies that have obtained a licence in other EU countries and are entitled to provide cross-border services are also included in this register as part of the notification mechanism. The national regulator recommends that users always check the legal status of the operator through official registers in both Finland and other EU countries. It should be noted that the protection provided by MiCA does not apply to cases where the service provider is registered outside the EU.

The issuance of crypto assets means the creation of new tokens. For ART and EMT, obtaining a licence is a prerequisite. As a rule, the issuer is both the offeror and the applicant for admission to trading. A public offering involves providing potential investors with sufficient information to make an investment decision, while admission to trading means listing the token on a regulated platform. For crypto assets that do not fall under ART or EMT, obtaining a licence at the time of issue is not required, but the issuer or offeror is responsible for preparing a technical document (white paper). It must contain information about the issuer, the project being financed through the issuance of crypto assets, a description of the rights and obligations of holders, a description of the technology and possible risks. The information in this document must be accurate, clear and not misleading, and marketing materials, including those distributed through social networks, must fully comply with its content. If a public offering or application for admission to trading is made by a third party rather than the issuer, this is only possible with the written consent of the issuer, who is in any case responsible for preparing the white paper.

Of particular importance in Finland is the transitional regime established at the national level. It applies to virtual currency service providers who were actually operating at the time of the entry into force of the national law on cryptocurrency operators or who were registered with the Financial Supervisory Authority no later than six months before the entry into force of this law. To take advantage of the transitional period, an application for a MiCA licence must be submitted to the Financial Supervisory Authority of Finland by 30 October 2024. This regime allows services to continue to be provided until 30 June 2025 or until the regulator decides to grant or refuse a licence. This creates conditions for a smooth transition for existing operators to the new pan-European rules established by MiCA.

The European Union’s Markets in Crypto-Assets Regulation (MiCA) came into force at the end of 2024, establishing uniform standards for regulating the cryptocurrency sector in all EU member states. Finland implemented this legislation in record time — just six months — significantly ahead of many other jurisdictions. The introduction of uniform rules entails stricter requirements for cryptocurrency service operators: to continue operating in the market, all companies are required to obtain a licence from the national regulator. For investors, the adoption of MiCA means a higher level of protection for their interests and greater transparency in the work of service providers. Cryptocurrency operators are now subject to the same principles as traditional investment companies, including obligations regarding corporate governance, maintaining sufficient capital levels and complying with customer identification procedures. The new regime makes the cryptocurrency market more comparable to the traditional financial sector, increasing confidence in it and reducing risks for participants. At the same time, the existence of a single EU licence allows companies to provide services throughout the Union without having to go through additional national procedures, which creates attractive conditions for large financial institutions to enter the market.

Stages of MiCA implementation in Finland

The European Union has begun full implementation of the Markets in Crypto-assets Regulation (MiCA), which tightens control over the activities of cryptocurrency service providers and unifies rules at the Union level. In Finland, the transition period was set as one of the shortest in Europe — only six months, while in other countries it varies from one to one and a half years. Despite the introduction of new regulations, consumers are advised to remain cautious when choosing service providers, as MiCA does not eliminate all the risks inherent in crypto assets. The MiCA Regulation will come into full force on 30 December 2024 and requires companies working with crypto assets to comply with standards similar to those applied in the traditional financial sector. Key requirements include competent corporate governance, sufficient own funds, transparency of operations and information security. Transition periods have been established for existing operators, but their duration depends on the specific jurisdiction. According to Tero Kurenmaa, Director of the Finnish Financial Supervisory Authority, the differences in timing mean that when purchasing cryptocurrency services outside Finland, consumers should be aware that regulation in other EU countries may be less stringent during the transition period. In addition, MiCA does not apply to services provided outside the EU and the EEA, which increases the risks for investors purchasing cryptocurrencies outside these regions.

Even after MiCA comes into force, risks related to asset price volatility, fraudulent schemes and cybersecurity threats remain. The regulation does not oblige service providers to assess the suitability of products for customers, and their activities are not covered by the investor compensation scheme. According to Maria Rekola, office manager at the Financial Supervisory Authority, most of the complaints received by the agency are related to fraud. In this regard, customers are advised to carefully check the history and reputation of the service provider and refrain from making hasty decisions about purchasing crypto assets.There are currently 13 virtual currency service providers registered in Finland. To continue operating after 30 June 2025, they must all obtain a licence in accordance with MiCA. The Financial Supervisory Authority has received eight applications for CASP licences, which are currently under review. Office Manager Marco Hovi noted that the Financial Supervisory Authority’s task remains to protect the interests of investors and ensure market stability. In 2025, the regulator will focus on monitoring liquidity management, conducting stress tests, the use of borrowed capital and the correct valuation of assets. In addition, new regulations are being developed at the European Union level, which should strengthen the regulation of the investment sector in the future.

At the end of 2024, the Markets in Crypto-Assets Regulation (MiCA), adopted in 2023, will come into force in the European Union. The main objective of this regulation is to strengthen the protection of private investors and combat money laundering. The adoption of MiCA marks the transition from an unregulated crypto market to a unified system of rules and supervision. Starting on 30 December 2024, the provision of services related to crypto assets in the European Union will only be possible with a licence from the national regulator. Such services include the storage of client assets, the management of trading platforms, the exchange of cryptocurrencies for fiat money or other tokens, the execution of transactions, the receipt and transmission of orders, the provision of advice, portfolio management and asset transfers. In Finland, licensing is carried out by the Financial Supervisory Authority (Finanssivalvonta, FiVa). All companies that have received a licence are entered in a public register. Organisations licensed in other EU countries and providing services to Finnish clients are included in a separate list of notifications. Investors are advised to check the presence of a service provider in official registers. It is important to note that MiCA does not apply to companies operating outside the EU and the EEA. For existing operators in Finland, one of the shortest transition periods in Europe is provided. To retain the right to continue operating, companies must apply for a MiCA licence by 30 October 2024 at the latest. In this case, they may provide services until 30 June 2025 or until a decision on the licence application is made.

 Companies that have obtained a MiCA licence in Finland

In Finland, Coinmotion became the first licensed company to receive permission from the Financial Supervisory Authority to provide a full range of cryptocurrency services. The licence covers the storage of digital assets, management of a trading platform, and operations involving the exchange of cryptocurrencies for euros and other crypto assets. This step made Coinmotion one of the first operators in Europe to confirm compliance with the new pan-European requirements and underscored Finland’s desire to cement its role as one of the leaders in crypto regulation. Coinmotion has been granted a licence to operate in the crypto asset sector by the Finnish Financial Supervisory Authority, in line with the new requirements of the EU’s Markets in Crypto Assets Regulation (MiCA). This development confirms the possibility of continuing to invest in digital assets in an environment that is now even more secure and reliable for customers. The implementation of MiCA marks a new stage in the development of the European crypto market, with stricter requirements for operators and higher standards for their work. From July 2025, all companies providing crypto-asset services will be required to hold a licence issued by the competent authorities. For investors, this means enhanced security measures, full transparency of operations and clearer regulatory rules, creating the basis for the stable and mature functioning of the industry. Finland has become one of the leaders in the practical implementation of the new rules: while most EU member states have established a transition period of one to one and a half years, in Finland it was only six months. This demonstrates the high efficiency of the national regulator and the market’s readiness to adapt to the new standards. Coinmotion successfully met all requirements within the set deadlines, confirming its high level of corporate governance and commitment to protecting the interests of its customers.

For investors, the CASP licence issued under MiCA is an additional guarantee of Coinmotion’s reliability and stability as a partner in the field of cryptocurrency investments. Stricter requirements for capital, management and customer identification ensure reliable protection of funds, while increased transparency of operations allows investors to obtain reliable information about all transactions. The official licence confirms Coinmotion’s status as a regulated company that complies with uniform European standards and confirms its attractiveness for long-term cooperation. Coinmotion  In addition to Coinmotion, the Finnish Financial Supervisory Authority has announced that it has received eight applications for licences in accordance with the European Union’s Markets in Crypto-assets Regulation (MiCA). All applications are currently under review, and the licensing procedures should be completed before the end of the transition period.

Regulation (EU) 2023/1114, which came into force in 2024, is a comprehensive European Union regulatory framework governing the activities of crypto asset and stablecoin issuers, as well as trading platform operators and wallet providers. MiCA is a key element of the pan-European digital finance strategy and aims to create a transparent and secure legal environment for the crypto industry.

The document introduces strict requirements for service providers, including measures to protect customer interests, ensure the security of digital asset storage, and prevent market abuse. The aim of the regulation is to counteract price manipulation, money laundering, terrorist financing, and other criminal activities. Obtaining an EU licence will become a mandatory requirement for all companies working with crypto assets in the Union. Financial Supervisory Authority Director Tero Kurenmaa noted that consumers should take into account the differences in transition periods between EU countries. When purchasing crypto assets outside Finland, investors may encounter different levels of regulation, and in the case of transactions outside the EU and EEA, MiCA legal protection does not apply at all. At the same time, it is important to remember that even with the new regulations in place, crypto assets remain a high-risk instrument. The main threats remain high volatility, fraudulent schemes and cybersecurity issues. As Maria Rekola, head of one of the supervisory departments, points out, a significant proportion of consumer complaints relate to fraud. In this regard, investors are advised to carefully check the reliability of the service provider before conducting any transactions. Prior to the entry into force of MiCA regulations, 13 operators working with virtual currencies were registered in Finland. In order to continue operating after 30 June 2025, all of them are required to obtain a crypto-asset service provider licence in accordance with MiCA.

Additional reporting and customer verification obligations for crypto companies in Finland

The amendment to the EU Directive on Administrative Cooperation (DAC8) significantly expands the scope of automatic exchange of tax information, extending it to transactions involving crypto assets. The new regime introduces additional reporting and comprehensive customer verification obligations for market participants. These requirements are based on the OECD Framework for Reporting on Crypto-assets (CARF). Member states are required to implement the provisions of the directive by 31 December 2025, which will allow it to be applied from the beginning of 2026. In Finland, legislative amendments are still being developed, but the content of the future regulations has already been determined, and operators should prepare to comply with the new obligations. The first report must be submitted to the tax authorities for 2026, tentatively in January 2027. Cryptocurrency service providers are advised to determine at this stage whether they are subject to the new requirements and to establish internal processes to comply with them. In particular, this involves collecting self-certifications from clients and establishing their tax residency. DAC8 applies to cryptocurrency service providers whose activities consist of providing services to third parties in the field of crypto assets. The definition is consistent with the approach set out in the MiCA Regulation. Thus, reporting entities include cryptocurrency exchanges, trading platforms, wallet operators and crypto asset issuers. The reporting obligation also applies to service providers registered outside the EU if their customers are tax residents of EU countries.

Reports are submitted to the tax authorities of the country where the provider is registered. Finnish operators will therefore send information to the Finnish Tax Administration. Crypto assets covered by DAC8 cover virtually the entire range of assets used for investment and payments, including major cryptocurrencies and some NFTs. Companies are required to report transactions involving both individuals and legal entities residing in EU countries. Reportable transactions include the exchange of cryptocurrencies for fiat, the exchange of one crypto asset for another, transfers between wallets, and payments in cryptocurrency for goods or services exceeding $50,000 or the equivalent in another currency. In addition, providers are required to conduct comprehensive customer due diligence, including identity verification and the collection and verification of information in accordance with anti-money laundering rules. If there are doubts about the accuracy of the data provided, the operator is required to request clarification or updating of the information. If the customer fails to comply with the request within 60 days after two reminders, the company must suspend transactions on their account.

Taxation of cryptocurrency in Finland in 2025

Income derived from the use or mining of virtual currencies and crypto assets is taxable and must be reported on your tax return. Expenses directly related to the generation of such income can be claimed as deductions. Virtual currencies are defined as all types of crypto assets, including Bitcoin, Ethereum, Litecoin, Tether and others. Income from the exchange or use of virtual currency is considered capital gains and is subject to capital gains tax. The obligation to declare arises when exchanging cryptocurrency for euros or other official currency, when exchanging one cryptocurrency for another, when paying for goods and services, or when using it to settle obligations. Income from mining is generally recognised as earned income and taxed as ordinary wages. The value of the currency received is determined by its exchange rate against the euro at the time of mining or use.

The Finnish Tax Administration uses the FIFO (first in, first out) method to calculate profits or losses. For each sale, exchange or use of cryptocurrency, the difference between the sale price and the purchase price must be calculated, taking into account the costs of purchase, storage or commissions. If the actual purchase price is unknown, an estimated value may be used: 20% of the sale price for assets held for less than ten years and 40% for assets held for more than ten years. In the tax return, the profit or loss from the exchange or use is indicated in the section “Capital gains – Capital gains”, selecting “Virtual currencies” as the asset type. Income from mining in the Proof-of-Work protocol is reported as other earned income, and electricity and equipment costs can be claimed as deductions related to earning income. In Proof-of-Stake, rewards are considered capital gains and are reported in the “Other Capital Gains” section with the corresponding deductions. Supporting documents do not need to be attached to the tax return, but they must be kept for six years in case of an audit. Income can be declared both in the MyTax system and on paper forms. The sale and exchange of cryptocurrencies are reported on Form 9, and mining income on Form 50A.

Crypto assets still carry significant tax and financial risks. Capital gains are taxable every time a cryptocurrency is exchanged for another currency, regardless of whether the funds are transferred to a bank account or left on the platform. Losses can be offset against future capital gains for the next five years. Income from trading contracts for difference (CFDs) is taxed under different rules. It is treated as capital gains at a rate of 30% up to €30,000 and 34% on the excess amount. Losses on CFDs are not deductible and do not reduce the tax base. Each transaction is taxed separately. Therefore, owners and users of cryptocurrencies must carefully record all transactions, keep records of purchases and expenses, file tax returns on time, and retain supporting documents. This will not only allow them to fulfil their tax obligations but also avoid risks in the event of a possible audit by the tax authorities.

Examples of taxation of income from cryptocurrencies and virtual assets in Finland

How can Regulated United Europe lawyers help you obtain a MiCA licence in Finland?

Obtaining a crypto-asset service provider (CASP) licence in Finland in accordance with the EU Markets in Crypto-assets Regulation (MiCA) requires careful preparation and full compliance with the regulatory requirements of the Finnish Financial Supervisory Authority (Finanssivalvonta, FiVa). The procedure involves complex legal, organisational and operational work, where any mistake can lead to delays or refusal of the licence.

Regulated United Europe‘s lawyers provide comprehensive support to companies planning to obtain a MiCA licence in Finland:

• Preliminary analysis and selection of a business model. Specialists assess the client’s activities, determine whether they fall within the scope of MiCA, and propose an optimal licensing strategy that takes into account transition periods and the specifics of Finnish regulation.
• Preparation of corporate structure. We assist in the creation or adaptation of a company in Finland, ensure compliance with requirements for authorised capital, management bodies and beneficiaries, and prepare internal policies and regulations.
• Documentation development. We prepare a complete set of documents for submission to FiVa: business plan, financial forecasts, AML/CTF policy, description of internal control systems, risk management and IT security procedures.
• Interaction with the regulator. We represent the client’s interests in the Financial Management Department, support communication with regulators and provide explanations upon request.
• Support at all stages of licensing. We provide legal support until the licence is obtained and assist in fulfilling post-licensing obligations, including reporting, auditing and compliance with investor protection requirements.
• Accounting for the specifics of the transition period. Finland has one of the shortest transition periods among EU countries (six months). We develop a strategy that allows companies to continue operating without interruption and successfully complete the licensing process within the established deadlines.

Thus, Regulated United Europe provides clients with comprehensive support for the process of obtaining a MiCA licence in Finland — from choosing a business model to obtaining a licence and starting regulated activities on the European crypto market. We can also help you obtain a VASP licence in other European Union countries.