FINLAND Trends and Developments Contributed by: Jon Hautamäki, Max Atallah and Mikael Huhtala, Nordic Law
tralised while being effectively centrally managed. If it is revealed that DeFi is only nominally and par- tially decentralised, meaning there is an identifiable centralised entity behind it, this entity is very likely to be interpreted as a CASP under MiCA. On the other hand, if a DeFi application or protocol is genuinely and completely decentralised, its operations are prac- tically beyond the scope of current legislation, and MiCA does not regulate these activities. Blockchain, Sustainability and the Circular Economy Finland has emerged as a forward-looking player in leveraging blockchain technology to drive sustain- ability and support the transition to a circular econ- omy. One of the most promising applications lies in blockchain-based digital product passports, which are transforming how products are tracked throughout their life cycle, from raw material extraction to end- of-life recycling. These passports provide unprece- dented visibility into supply chain dynamics, offering both businesses and consumers access to reliable, tamper-proof data on material origin, environmental impact and production processes. In a complementa- ry development, MiCA mandates that white papers for crypto-assets disclose any principal adverse impacts on climate and the environment, further embedding sustainability within the regulatory framework. Finland’s national advantages also make it a uniquely supportive environment for sustainable blockchain development. The country’s cold climate is naturally conducive to energy-intensive activities such as data storage and crypto mining, reducing the need for artificial cooling systems and lowering energy con- sumption. This is complemented by Finland’s robust renewable energy infrastructure allowing blockchain platforms to operate on low-carbon energy sources and at comparatively lower and more stable electric- ity costs. Outlook and Conclusions 2025 served as the “great consolidation” for Finnish fintech, and 2026 is the year of operational execution. The transition from fragmented national regimes to the robust frameworks of MiCA, DORA and the TFR has provided the legal certainty that global investors and innovative founders demand.
Finland continues to hold a prominent position in the global blockchain ecosystem, thanks to its deep- rooted technological capabilities and history of early innovation. The full application of MiCA has sparked renewed optimism that the country could become a more attractive destination for blockchain ventures. While neighbouring regions, including parts of the Bal- tic region, have faced regulatory volatility and active revocation of previously granted fintech registrations, Finland’s FIN-FSA has maintained a technology-neu- tral approach that rewards compliance with market access. The authorisation of five key CASPs and the successful EU-wide launch of regulated stablecoins such as USDG by Paxos serve as clear evidence that Finland is a leading destination for complex digital asset operations. Finland’s commitment to sustainable energy produc- tion and its advanced infrastructure for heat recovery present a unique opportunity for blockchain applica- tions that require significant energy inputs, such as bitcoin mining. With its political stability and a focus on renewable energy sources, Finland offers lower and more stable electricity costs, potentially making the country an increasingly attractive location for envi- ronmentally sustainable blockchain operations. From a corporate perspective, although Finland does not offer fintech-specific tax incentives, the corpo- rate income tax rate remains among the lowest in the Nordic countries and is scheduled to be reduced by two percentage points as of 1 January 2027, further enhancing Finland’s attractiveness as a jurisdiction for establishing fintech businesses. Finland also offers a special expatriate tax regime under which qualifying key employees relocating to Finland may opt for a flat 25% income tax rate. Finnish legislation does not require the owners or management of a fintech com- pany to reside in Finland or to be tax residents, provid- ing significant flexibility for international founders and management teams. In summary, the 2026 fintech landscape in Finland is characterised by maturity, resilience and cross- border connectivity. As the boundaries between tra- ditional banking and fintech continue to blur under the upcoming PSD3 and PSR framework, Finland remains uniquely positioned to serve as the Nordic gateway for
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