Estonia's crypto honeymoon at an finish as stricter rules loom

Estonia’s finance ministry is reportedly trying to enact stricter crypto licensing rules. This comes after the authorities revoked the licenses of about two-thirds of the cryptocurrency companies working within the nation again in 2020.

In keeping with ERR Information, the Estonian Ministry of Finance issued draft laws again in January to tighten the noose on the nation’s crypto business. As a part of the proposed rule adjustments, the Finantsinspektsioon — Estonia’s Monetary Supervisory Authority — will oversee the regulation of cryptocurrency companies as a substitute of the Monetary Intelligence Unit.

This modification will convey crypto oversight beneath the purview of monetary regulators as in opposition to the present paradigm the place the FIU, which is a part of the police division handles the monitoring of cryptocurrency companies.

Crypto corporations taken with working in Estonia should pay a licensing payment to the Finantsinspektsioon. The present 381 license holders may also should reapply for an working allow from the Monetary Supervisory Authority.

In keeping with Erki Peegel, a spokesperson for the finance ministry, the federal government’s goal will not be anti-crypto in nature. Nevertheless, authorities count on that solely 50 to 100 crypto corporations that already maintain licenses are able to adjust to the proposed regulatory rule adjustments.

The proposed rule adjustments are additionally coming amid efforts by the federal government to fight cash laundering actions. Again in June 2020, a $220 billion cash laundering scandal erupted involving Danske Financial institution. Additionally, in 2020, reviews emerged that crypto scammers had overrun the nation’s e-residency program.

Nevertheless, Estonia’s current political upheaval with the resignation of Prime Minister Jüri Ratas amid a corruption scandal has put the passage of the proposed laws on maintain. Certainly, at this time was the deadline for parliament to deliberate on the difficulty.