Prasos Oy is a blockchain company that offers a cryptocurrency exchange, experiments different blockchain solutions and is trying to implement a merchant platform. Besides that, Prasos Oy works with several cryptocurrency platforms like Coinmotion, Coinmotion Payments, Bittiraha, Denarium, Coinmotion instant and Bittimaatti. Furthermore, the company has over 60,000 clients and has covered 200 countries.
No matter how recognised or important the company is, banks seem very closed to operate with it. Banks like Saastopankki, Nordea Bank AB and S-Bank have already closed the company’s accounts. At the moment, Prasos Oy is operating with POP Bank.
Henry Brade, CEO of Prasos Oy commented:
“The risk is that we’ll see our last bank account closed before we can get the next one opened. That would freeze our business. We’ve realized that the growth in international transaction volumes started to disturb the banks. Along the way, we’ve been given very little information by the banks on what we could do to solve the problem.”
It is important for cryptocurrency platforms to have good Know Your Customer (KYC) and Anti Money Laundering (AML) policies. Banks are at odds with anonymous cryptocurrency activities, and companies that have grown so fast during the last year generate suspicion in the banking industry.
At the same time, the European regulators and Financial Authorities did not comment on the matter. Finland’s Financial Supervisory Authority (FSA) is also not offering any advice to Prasos Oy.
“Cryptocurrency trading places are not currently under the regulatory mandate of the Finnish FSA,” commented Hanna Heskanen of the FSA.
European Bank Authority Against Cryptocurrencies
The European Bank Authority has also given its opinion about the matter. They recommend not to give support to cryptocurrency companies. But Mr Brade has commented that the company is working to improve their KYC practices and work with banks to improve their reputation.
“We’ve created identification practices, which we have taken into use in March, and they comply fully with anti-money laundering laws and regulations, even though authorities do not even require this form us as our business is not under regulatory obligations.”
That’s an important step towards generating a better relationship with banks and other financial institutions. It is also important to mark that Finland shares an important common culture with Estonia, a country that is located 80km away from Helsinki.
Estonia is known for being a very open country towards new technologies and cryptocurrencies. Indeed, it offers an e-residency for enterprises that want to operate in the country. It would be much easier for Prasos Oy to operate in Estonia rather than in Finland.