Swedish Financial Supervisory Authority Initiates Money Laundering Investigation into Safello and Goobit Cryptocurrency Exchanges

• [August 26, 2021] The Swedish Financial Supervisory Authority (Finansinspektionen or FI) has announced an investigation into two major cryptocurrency exchanges, Safello and Goobit, over concerns about their vulnerability to money laundering and terrorist financing activities.

Concerns over Cryptocurrency Exchanges’ Characteristics

• Virtual currencies’ quick settlement processes, limited transparency, borderless asset transfers, and anonymity features make them attractive targets for criminals.
• The FI emphasized the significance of these exchanges as intermediaries in the financial system since they facilitate the exchange of virtual assets for fiat money.
• Compliance with money laundering regulations is crucial for these entities to prevent malicious activities.

Goobsit and Safello under Investigation

• Safello and Goobit, two Sweden-based exchanges, have come under the FI’s scrutiny due to their status as virtual asset market intermediaries.

Support for Increased Regulation and Supervision

• Goobit responded positively to the investigation, describing it as an essential stepping stone toward cryptocurrencies’ maturity and broader societal acceptance.
• The company acknowledged the need for increased regulation and supervision to address potential risks.

Importance of Registration and Compliance

• All cryptocurrency exchanges operating in Sweden are required to register with the FI and comply with the country’s money laundering regulations.

FI’s Role in Financial System Supervision

• The FI supervises financial institutions and securities markets in Sweden and is charged with overseeing the conduct of financial businesses, ensuring consumer protection, and preventing financial crimes.