New GIIF Guidelines for Virtual Currency Transactions

GIIF has issued a statement regarding the application of financial security measures in transactions involving virtual currencies. This response comes after identifying problems with VASPs’ adherence to these security measures.

Obligation Regardless of Transaction Type

GIIF mandates that VASPs (Virtual Asset Service Providers) apply financial security measures in occasional transactions involving virtual currency valued at 1,000 euros or more, in accordance with Article 35(1)(2)(c) of the AML Act.

Financial security measures must be applied regardless of the transaction’s nature – whether defined by VASPs as a payment, property rights, or any other civil law matter. Any occasional transaction involving virtual currency worth 1,000 euros or more inherently triggers the need to apply these security measures according to the AML Act.

Consequences of Non-Compliance

The GIIF communication reveals that some VASPs attempt to evade the obligation to apply financial security measures. GIIF emphasizes that proper adherence to these procedures should be considered by other obligated institutions, such as banks, during the KYB (Know Your Business) process.

These institutions should evaluate whether the VASP complies with the requirements of Article 35(1)(2)(c) of the AML Act.

Reliable VASP = Legal Compliance

Properly fulfilling AML/CFT (Anti-Money Laundering/Countering the Financing of Terrorism) obligations is not only a legal requirement but also demonstrates the reliability of the VASP.

The full text of the communication is available on the Ministry of Finance website.

Ensure your company complies with regulations. Contact our law firm to find out how we can assist you.