Estonia’s crypto honeymoon at an end as stricter regulations loom

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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.

According to 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 an alternative of the Monetary Intelligence Unit.

This transformation will convey crypto oversight below 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 companies fascinated about working in Estonia should pay a licensing charge to the Finantsinspektsioon. The present 381 license holders can even must reapply for an working allow from the Monetary Supervisory Authority.

In line with Erki Peegel, a spokesperson for the finance ministry, the federal government’s purpose is just not anti-crypto in nature. Nonetheless, authorities anticipate that solely 50 to 100 crypto companies 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 combat money laundering activities. Again in June 2020, a $220 billion money laundering scandal erupted involving Danske Financial institution. Additionally, in 2020, reports emerged that crypto scammers had overrun the nation’s e-residency program.

Nonetheless, Estonia’s latest 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, right this moment was the deadline for parliament to deliberate on the problem.