Is it legal to buy Crypto in Finland?
Yes, it is legal to buy cryptocurrencies in Finland. Cryptocurrencies are not regulated in Finland, but they are treated as financial assets for tax purposes. The Finnish Tax Administration has issued guidelines on how to report and pay taxes on cryptocurrency transactions.
In Finland, the Financial Supervisory Authority (FIN-FSA) is responsible for regulating financial markets and financial service providers, including those operating in the cryptocurrency space. The FIN-FSA has issued guidance on the risks associated with investing in cryptocurrencies and has warned consumers about the potential for fraud and other risks associated with cryptocurrency transactions.
How to buy Crypto or Bitcoin in Finland
The safest and easiest way to buy digital assets in Finland is through a FIN-FSA approved trading platform. If you are looking to get started quickly, we recommend the Uphold platform which is the largest and most trusted in the country. They offer direct Finnish Bank deposits to trade 200+ cryptos and hundreds of other stocks, ETFs and metals like gold and silver.
Here is a step-by-step guide to get started:
- Sign Up: Create an account on Uphold and complete your verification (personal or company).
- Connect Account: Select the currency you want deposit on Uphold (EUR + 30 more).
- Deposit Funds: Connect your Finnish Bank, European Bank or a Debit/Credit Card to deposit money.
- Buy Crypto: Find the asset on Uphold and input your amount to invest, then execute your order.
Best Alternative Exchanges
For investors looking to do more due-diligence, we have outlined the 5 best alternative exchanges to buy and sell cryptocurrencies in Finland. All platforms hold equivalent or better licensing than Uphold, making them all safe ways to get started:
- Northcrypto: Northcrypto is the most popular Finland-based exchange that offers over 100 cryptocurrencies to trade. Their platform is based in Turku, Finland and holds a licensed from FIN-FSA and relevant European regulators.
- Kraken: Kraken is a US-based exchange that has been in operation since 2011. It is regulated by FIN-FSA and offers a wide range of cryptocurrencies to trade, as well as high liquidity and low fees.
- Binance: Binance is a large, global exchange that offers a wide range of cryptocurrencies to trade, as well as a variety of trading tools and resources. The platform is based off-shore and is not directly regulated in Finland.
- Bitfinex: Bitfinex is a Hong Kong-based exchange that offers a wide range of cryptocurrencies to trade, as well as advanced trading tools and resources for experienced traders. It has high liquidity and low fees.
- LocalBitcoins: LocalBitcoins is a peer-to-peer exchange that allows users to buy and sell bitcoin directly with each other. It is available in many countries, including Finland, and offers a convenient way to buy and sell bitcoin with cash or online payments.
Best Crypto Staking Platform in Finland
Staking is the process of holding and supporting a cryptocurrency by holding it in a wallet and participating in the network's consensus process, typically through a process called "proof of stake."
The safest and most popular staking platform in Finland at time of writing is Uphold. This is because they are the only exchange in the country that has an audited proof of reserves, which shows that all customer funds are never loaned our - making them the safest option. They offer staking for 30+ coins with interest rates as high as 25% APY.
Our Ranking Methodology
There are several factors that you can consider when assessing the quality of a cryptocurrency exchange in Finland. When ranking the best exchanges in the country, our list takes into consideration the following criteria:
- Regulation: Look for exchanges that are regulated by a reputable authority, such as the Financial Supervisory Authority (FIN-FSA) in Finland. This can provide some level of protection for your funds in the event of an exchange failure or hack.
- Security: Check for security measures such as two-factor authentication, cold storage of digital assets, and regular audits.
- Fees: Compare the fees charged by different exchanges for trading and withdrawing funds. Consider choosing an exchange with lower fees, especially if you plan to trade frequently.
- Liquidity: Look for exchanges with high liquidity, which means that there are many buyers and sellers and you can easily buy or sell large quantities of cryptocurrency without significantly affecting the price.
- Customer support: Check for the availability of customer support, such as email or phone support, and consider the responsiveness and helpfulness of the support team.
- User experience: Consider the user experience of the exchange, including the user interface and the availability of various trading tools and resources.
- Reputation: Look for exchanges with a good reputation in the community and read reviews and testimonials from other users.
Overall, it is important to do your due diligence and carefully research any cryptocurrency exchange before using it.
How is Crypto Taxed in Finland?
In Finland, the tax treatment of cryptocurrency transactions depends on the specific circumstances of the transaction and the individual's personal tax situation. Generally, the tax treatment of cryptocurrency transactions is similar to that of other financial assets.
If you hold cryptocurrency as a personal asset, any gains or losses on the sale or exchange of the cryptocurrency are subject to capital gains tax. If you hold the cryptocurrency for less than one year, the gain is considered short-term and is taxed as ordinary income at your marginal tax rate. If you hold the cryptocurrency for more than one year, the gain is considered long-term and is taxed at a lower rate.
It is important to note that the tax treatment of cryptocurrency may change in the future, and it is recommended to consult with a tax professional or the Finnish Tax Administration for the most up-to-date information.
When choosing a cryptocurrency exchange in Finland, be sure to consider the regulations, security measures, fees, liquidity, customer support, user experience and reputation of the platform. By taking all of these factors into account, you can ensure that you find an exchange that is suitable for your needs.
Additionally, it is also important to remember that cryptocurrency markets are highly volatile and all investments involve some degree of risk, so you should always do your own research before making any investments.