Estonian authorities are working on a new law that is expected to be tougher Rules for this The country’s cryptocurrency sector. The regulator of the Baltic nation for industry is considering whether to revoke previously issued crypto licenses and re-introduce approval from the start.
Licensed crypto companies register millions in turnover, Estonia receives very little
With a population of just 1.3 million, Estonia is one of the least populous member states of the European Union and the eurozone. However, the small country has become a magnet for a large number of crypto companies attracted by the friendly regulatory regime established a few years ago.
According to Mattis Maker, head of the Estonian Financial Intelligence Unit (FIU), these firms process more than 20 billion euros in transactions, accounting for more than 40% of cross-border transfers in the local banking sector. Only one out of 10 companies in the country has a bank account.
The Estonian-licensed crypto business has at least 5 million subscribers worldwide, maker Yeasty Express told the newspaper. He added that anti-money laundering agencies often identify companies that have almost nothing to do with Estonia and its markets.
Many of them do not invest in the country or create employment, the official commented. Their only goal is to get an Estonian license that allows them to process a hefty amount of money, from which Estonia gets nothing.
The FIU executive said that if Tallinn officials had been able to predict the risks associated with crypto companies in 2017, they would not have allowed the next explosive increase. “Of course the decision would have been different. We’re learning … the whole world is learning, “he commented for Bloomberg.
FIU Major supports the restoration of all crypto licenses
Towards the end of 2018, Tallinn’s government is tightening its regulations for the crypto industry. Authorities have so far revoked about 2,000 licenses issued to crypto service providers such as exchange and wallet operators.
Earlier this year, officials indicated they were planning to introduce more stringent regulations. The finance ministry has drafted a new bill and is currently in talks with other institutions. The law has the potential to introduce higher capital requirements and appropriate perseverance for crypto companies on annual audits and transaction volumes.
Mattis Maker wants to go further. Asked what the government should do, he told Yeasty Express that Tallinn “needs to turn control over to zero and start licensing again,” agreeing with the publication that all authorities’ permits should be revoked and new ones issued. The FIU chief said:
We will tighten our supervision, we will tighten our vision which is related to market entry.
Later, the Financial Intelligence Unit told the crypto news outlet Forklog that it was not considering automatically revoking all licenses previously issued for crypto-related activities. The agency added that it supports the upcoming rules which will also increase its own powers in the approval process.
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