- Estonia’s Financial Investigation Unit (FIU) has introduced new crypto legislation.
- 90% of platforms are at risk of losing their license or being forced to relocate under the new laws.
- Among other things, cryptocurrency providers must have a local base in Estonia.
The Estonian-based crypto startup, CryptoWallet, has renewed its virtual asset provider license to conform to the new digital assets legislation in Estonia.
Estonia’s Financial Investigation Unit (FIU) has introduced new laws targeting digital currency platforms after poor management, financial risk, and fraud concerns among crypto service providers especially following the various crypto collapses in the recent past.
New Estonia crypto regulation
Under the previous crypto regulation, more than 55% of cryptocurrency service providers around the world licensed outside Estonia could still practice in Estonia. The crypto services providers were also only required to hold €12,000 in capital reserves.
However, under the new laws, about 90% of the crypto platforms offering services in Estonia are at risk of losing their license or being forced to move out of the country.
The new laws require crypto service providers to have €250,000 held in capital reserves to prevent financial mismanagement. The service providers should also be based in Estonia and should introduce stricter KYC and AML checks besides showing viable business products and strategies.
Commenting on CryptoWallet’s license renewal, the startup’s COO Aleksander Smirmin said:
“This sought-after license, once again awarded by the FIU, is the culmination of years of hard work and dedication by the CryptoWallet team. We are fully compliant, have the required shared capital, and are launching products that will enhance our users’ lives.”
CryptoWallet to launch a crypto card
CryptoWallet aims at leveraging its license to operate in the country to launch a crypto card that will support 800 cryptocurrencies later this year.
The new FIU regulations are aimed at preventing fraud, ensuring compliance and transparency within the crypto space and creating a safer and more competitive industry.