The new government of Estonia is still planning an agenda to tighten the rules for handling cryptocurrency companies. The Ministry of Finance hopes to strengthen anti-money laundering measures in the context of the major money laundering scandal involving Danske Bank.
Estonia revoked licenses of more than 1,000 crypto companies in 2020
According to a report by ERR News, the goal of the Ministry of Finance is not to get rid of the previous government’s agenda for regulating crypto assets such as Bitcoin (BTC). The current draft legislation is inherited from the former prime minister and central party leader Yuri Ratas (Jüri Ratas).
Although Estonia was seen as a crypto-friendly hotspot in the region a few years ago, especially during the tenure of Taavi Rõivas, the situation has changed recently. Before the Ministry drafted regulations to make the regulations more stringent, Estonia issued more than 1,300 permits.
According to Ratas’ legislation, the licenses of more than 1,000 crypto companies have been revoked, accounting for 70% of Estonian digital asset companies. However, the government has not issued new rules specifically for the cryptocurrency industry. In fact, what they want to target is a large illicit capital flow of more than $220 billion in money laundering.
The existing license encryption company should reapply for another license
Existing legislation also attempts to give the Financial Supervisory Authority (Finantsinspektsioon) the power to oversee the national cryptocurrency industry. Previously, the Financial Intelligence Unit (FIU) was the entity responsible for overseeing and issuing licenses for this industry.
According to local media reports, the existing 381 licensed companies engaged in encryption technology should reapply for another license from Finantsinspektsioon. ERR News quoted Erki Peegel, a consultant to the Ministry of Finance, as saying that the measure was not designed to shut down operators.
However, the consultant warned that the United States can maintain approximately 50 to 100 cryptocurrency companies. The media also added that the new cabinet believes that the rules for obtaining permits are not strict enough.
What do you think of Estonia’s current position on cryptocurrency? Let us know in the comments section below.
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