- Estonia’s Financial Investigation Unit (FIU) has introduced new laws for digital currencies.
- 90% of platforms are in danger of losing their license or being forced to relocate due to the new rules.
- Crypto companies must have a local base in Estonia and comply with stricter KYC and AML checks.
The Estonian cryptocurrency business, CryptoWallet, has obtained its virtual asset provider license after the new legislation on digital assets in Estonia.
Estonia’s Financial Investigation Unit (FIU) has established new regulations for digital currency platforms to address worries about financial risk, mismanagement, and fraud in the crypto space following the collapse of many cryptos.
Estonia crypto regulations
Under the former crypto guidelines, over 55% of digital currency service providers from outside Estonia could still provide services in Estonia. Crypto service providers only had to hold €12,000 in capital reserves.
But with the new laws, about 90% of the crypto platforms operating in Estonia are in danger of losing their license or being forced to move out of the country.
The new laws mandate that crypto companies have €250,000 in capital reserves to stop financial mismanagement. Additionally, the service providers must have a local base in Estonia and must apply stricter KYC and AML checks and present viable business models and strategies.
Commenting on CryptoWallet’s license renewal, the startup’s COO Aleksander Smirmin said:
“This much sought-after license, granted once again by the FIU, is the result of years of hard work and commitment by the CryptoWallet team. We are fully compliant, possess the required share capital, and are launching products that will improve our users’ lives.”
CryptoWallet to launch a crypto card
CryptoWallet is looking to use its license to operate in the country to launch a crypto card that will support 800 different cryptocurrencies later this year.
The new FIU regulations are intended to prevent fraud, ensure compliance and transparency in the crypto sphere, and create a safer and more competitive environment.
