Skiptimynt, the crypto exchange is the first to be registered under Iceland’s financial regulatory agency. More crypto firms are expected to follow suit.
On September 5, Kjanim reported that skiptimynt is now registered with Iceland’s financial regulatory body Financial Supervisory Authority (FME). The exchange is the first crypto exchange firm to be licensed to do business in Iceland.
Skiptimynt’s exchange services are limited to Bitcoin and Auracoin. Iceland had released new regulations that mandated crypto-related firms to be licensed so that money laundering and terrorist activities could be monitored.
The Influx of Crypto Activities in Iceland
Bitcoin is one of the major and most accepted cryptocurrencies in the world. Its popularity reached a peak last year when the price of I unit of bitcoin rose to $20,000. However, Bitcoin has continued to be criticized by environmentalists and energy experts. These critics have pointed out that the process of mining bitcoin is a major contributor to the world’s carbon production.
The process involved in mining bitcoin is rigorous and power intensive as miners use dedicated mining devices that consume lots of electricity. An earlier Report had revealed that the annual power used for mining bitcoin is equivalent to the annual power consumption of some countries.
However, on the 22nd of December, Coinpedia reported that a researcher from the University of Pittsburgh had released some interesting facts that counter this criticism. The researcher revealed that bitcoin miners are relocating to countries that solely generate renewable and cheap electricity. One such country is Iceland. Iceland generates almost 100% of its power from renewable energy sources.
Mining Bitcoin is Not the Reason
The influx of mining activities in countries like Iceland confirms that bitcoin mining’s power consumption is not a major factor for the increase of the world’s carbon emission. However, Iceland’s government has been skeptical of the increase of crypto activities within its borders. Many government officials had reportedly stated that mining and crypto activities have not had any influence on the nation’s revenue.
Therefore, the government introduced a regulatory framework that will monitor the activities of crypto firms within its borders. The regulatory framework will see to it that all profitable transactions embarked by these firms are taxed. The framework will also act as a check for money laundering activities linked to cryptocurrencies.