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Four out of the five banks that Finnish-based Prasos Oy uses for their business has severed ties with the exchange, citing money laundering fears as the main reason.

Prasos Oy has become a well-known name in the Nordic region’s crypto circuit. The platform relies on the country’s centralized banks to assist in converting their clients’ cryptos into euros. They also run and

#Bitcoin dealer #PrasosOy, has one lifeline left. The company exchanges #cryptocurrencies into euros, and relies on banks to help it with the transactions. But banks are increasingly saying no #investments #money

— Proxima Experience (@ProximaXp) March 9, 2018

Money-Laundering Fears Are the Cause

According to Bloomberg, last year saw a massive blow to business as four of the five banks that Prasos uses closed their accounts with the exchange. The banks in question, S-Bank, the OP Group, Saastopankki and Nordea Bank AB have not directly commented on the closure but did give have some remarks.

Laura Niemi, a manager in the corporate security department at the OP Group, has said that the bank is cautious about the anonymity associated with digital currencies. Tomi Narhinen, CEO of Saastopankki, said:

In most, cases it’s practically impossible, or at least very hard, to do business with cryptocurrency dealers and exchanges, because it can be impossible to determine the origin of the funds.

Even though crypto regulations are not in place for the country, some banks in Finland are steering clear of exchanges as they fear that they are aiding in money-laundering scams.

The issue is that cryptocurrencies offer anonymity, which goes against the European Union’s (EU) anti-money laundering regulations, which have been provisionally extended to include digital countries. These rules include financial institutions requiring both the customer’s name and the source of the money.

Prasos has however sought to assist with this tricky situation:

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 - click here to read the rest of this article