Skip to main content

Estonia to Tighten Rules for Licensed Crypto Companies

Estonia to Tighten Rules for Licensed Crypto Companies

Estonia, one of Europe’s most crypto-friendly nations, plans to tighten its licensing regime for cryptocurrency companies. The financial authorities in Tallinn want to introduce stricter regulations for fintech businesses registered in the Baltic country.  

Also read: Binance Terminates Services for Users in Belarus

Regulators to Increase Oversight

The Financial Intelligence Unit, the Estonian regulator issuing the licenses, has made a number of proposals to strengthen the rules for entities dealing with digital assets. The Ministry of Finance is currently preparing draft amendments to the country’s Anti-Money Laundering and Counterterrorist Financing Law, the local news outlet Äripäev reported.

Estonia to Tighten Rules for Licensed Crypto CompaniesThe revisions will be presented to the Council of Ministers for approval and then filed in the Estonian parliament for adoption. The ministry believes the anti-money laundering bureau should be tasked with inspecting all companies that provide services in the sector. The monitoring of their activities should ensure they are stable and maintain impeccable reputations.

Once the new regulations are adopted, crypto businesses registered as Estonian legal entities will be required to keep their headquarters in the country. Companies registered in foreign jurisdictions will be obliged to establish subsidiaries in Estonia.

The upcoming changes have been announced a year after the new Estonian Money Laundering and Terrorist Financing Prevention Act came into force. The act transposed into national law the provisions of the 4th Anti-Money Laundering Directive of the European Union, of which Estonia is a member.

Crypto-Friendly Estonia

Estonia to Tighten Rules for Licensed Crypto CompaniesEstonia is a trailblazer in Europe when it comes to adopting favorable regulations for the cryptocurrency industry. The small Baltic nation became the first country to introduce a licensing regime for companies in the sector. Many crypto businesses have been attracted by the opportunity to operate legally within a European jurisdiction.

Since the adoption of the regulatory framework last year, the Financial Intelligence Unit has licensed close to 1,000 entities. The regulator issues two types of licenses. According to data quoted by the Estonian news outlet Err.ee, 444 wallet providers and 526 cryptocurrency trading platforms are currently licensed to operate in the country.

Estonia is known for its developed e-government infrastructure and unique e-residency program, which provide private individuals and corporate entities with access to fast and efficient services. As news.Bitcoin.com reported recently, the application process for a crypto license takes only about two weeks. Meeting a number of know-your-customer and anti-money laundering requirements is an important precondition for approval.

Estonia is one of several jurisdictions spearheading the adoption of crypto-friendly laws and rules in Europe, along with Switzerland, Belarus, Malta, Gibraltar and the Isle of Man.

What are your expectations about the future of crypto regulations in Estonia and Europe? Share your thoughts in the comments section below.  

Images courtesy of Shutterstock.

Make sure you do not miss any important Bitcoin-related news! Follow our news feed any which way you prefer; via Twitter, Facebook, Telegram, RSS or email (scroll down to the bottom of this page to subscribe). We’ve got daily, weekly and quarterly summaries in newsletter form. Bitcoin never sleeps. Neither do we.

The post Estonia to Tighten Rules for Licensed Crypto Companies appeared first on Bitcoin News.



from Bitcoin News https://ift.tt/2DUjZf4
Labels:

Comments

Post a Comment

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more