Estonia has been discussed widely in the cryptocurrency space for having revoked nearly 500 crypto firm licenses.  Estonian regulators are tightening their regulations on the crypto-related firms.

Very recently, the Estonian government have specified the restriction on the freedom of movement after crossing state borders.  They have been denying citizenship to applicants who have been in trouble with law.  They have extended support to the European Union’s recovery plan.

The Estonian government have been long working on proposing legislation to reduce money laundering, terrorist financing, and other related criminal activities.  They have been tightening their regulations concerning virtual currency service providers.

Sydney Ifergan, the crypto expert tweeted:  “A $200 Billion Money laundering Scandal alerted the Estonian Regulators and thus spelled disaster for 500+ crypto firm licenses.  Very Bad.”

The Estonian Financial Intelligence Unit have stated that their current move is focused on cleaning the crypto industry. 

Their focus they claim is not to cripple the sector, but to clear up the risks related to money laundering.

The current move is fueled by Danske Bank, Denmark’s biggest lender, who has been accused of facilitating $223 billion of laundered money through a small Estonian branch.

This has gained attention as it is considered the biggest money-laundering scandal of Europe therefore it has now left egg on the face of Estonian authorities.  They have therefore turned their attention to crypto firms, as it is considered a sector with high risk.

Estonia Tidying up Market

Until the ban, Estonia used to be haven for cryptocurrency companies.  They have been liberalizing cryptocurrencies since 2017 and they have licensed more than 1,400 entities in three years.  However, regulators are stricter now.  They are working to clear up the bin.  They are making the regulations stringent making it difficult to get a crypto license.

The new permits for cryptocurrency companies will be issued after a period of 3 months for a cost of €3,300 ($3,715). Previously, it was possible for them to give licenses in 30 days for a license fee of €300.

Estonia has done this to avoid crypto firms misuse their credentials to commit fraud elsewhere. To date, they were taking action on registered firms who did not start their operations in Estonia within six months of getting a permit; however, this is their first step in the process of tidying up the market, thereby sustaining the credibility of their licensing authority.

New regulations require that crypto entities who register in Estonia will need to incorporate in the country or open an Estonian branch of a foreign company.