Through this partnership, Coinmotion will tap Fenergo’s Transaction Monitoring system to gain a better understanding of customer behaviour in real-time, as well as the ability to report suspicious transactions to the Financial Intelligence Unit (FIU).
By implementing Fenergo’s solution, Coinmotion will further develop its AML compliance processes by leveraging KYC and transactional data to detect suspicious activity instantly. In essence, the integration will reduce wasted time and effort caused by false positives while allowing the cryptocurrency service provider to remain vigilant to unexpected events. Adopting a risk-based approach while maintaining compliance with evolving AML regulations helps Coinbase expand its operations and move away from an in-house solution to an automated Fenergo system.
In the company press release, officials from Coinmotion emphasised the need to set an example for the cryptocurrency industry by protecting their users. They also talked about Fenergo’s Transaction Monitoring and its key role in helping Coinmotion to remain AML compliant as it scales its operations.
Finland-based Coinmotion allows Finnish and foreign users to trade crypto to crypto, crypto to fiat, and fiat to crypto. Specifically, the crypto platform allows users to buy, store and use Bitcoin, Litecoin, Ether, Stellar Lumens, XRP (Ripple), USD Coin, Uniswap, Aave, and Chainlink. Crypto transfers between users are free.
The company’s collaboration with Fenergo will allow it to navigate the Nordic regulatory landscape by tapping into its regulatory expertise and experience in supporting major financial institutions. Coinmotion has established a presence in other European regions. In January 2023, the company obtained regulatory approval from the Bank of Spain as a valid provider of virtual currency exchange services for fiat currency and custody of electronic wallets.
In order for crypto service providers to enter the cryptocurrency operator registry of the Bank of Spain, they need to demonstrate adequate procedures for the prevention of money laundering and terrorist financing. In addition, they must meet the requirements of commercial and professional repute.
Officially regulated as a cryptocurrency provider by Finland’s FIN-FSA since 2019, Coinmotion has been operating in Spain for several years, serving high-net-worth investors, companies, and institutions. Despite already having an EU passport through its Finnish license, Coinmotion registered with the Bank of Spain after the country announced the mandatory registration for cryptocurrency providers in 2021.
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