Nearly 400 Crypto Firms Lose Their Estonian Licenses Under New Rules

0 8

Nearly 400 Crypto Firms Lose Their Estonian Licenses Under New Rules

knife

The majority of crypto companies attracted by the once favorable Estonian regulations have either abandoned or lost their licenses. According to the latest numbers released by the Baltic nation’s anti-money laundering bureau, only 100 businesses are currently authorized to provide digital-asset services.

Most Estonian Licenses for Provision of Crypto-Related Services Expire

A total of 389 authorizations issued by the Estonian government to virtual-asset service providers are no longer valid, the country’s Financial Intelligence Unit (FIU) announced this week. As of May 1, 2023, there were 100 active authorizations, the bureau said on Monday.

Estonia attracted hundreds of crypto firms with its business-friendly climate before it decided to stiffen rules for the industry with amendments to the Money Laundering and Terrorist Financing Prevention Act that came into force in March 2022. These include higher capital requirements for wallet, exchange, and custody platforms.

The licenses have been canceled either by the FIU or at the request of the holders, a press release noted. “Following the entry into force of the enhanced requirements … service providers abandoned nearly 200 authorizations. In addition, the FIU revoked almost the same number of authorizations due to non-compliance,” the agency detailed.

“In renewing authorizations, we saw situations that would surprise every supervisor,” commented FIU Director Matis Mäeker. Among other issues, the unit identified persons on managerial and other positions that were not aware of having been appointed, as well as individuals with false professional resumes.

The business plans submitted by several companies were identical, the regulatory body also pointed out. Others lacked any connection to Estonia, in breach of another of the new requirements. The applications of many of these platforms were submitted by the same legal firms.

“In the applications, we found very many suspicious circumstances on various topics. This calls into question the credibility of the companies that wanted to do business here — their actual desire to provide services in Estonia or, vice versa, shows the desire of certain persons to use the Estonian economic and financial system for illegal activities,” Mäeker elaborated.

“The Financial Intelligence Unit will continue reviewing authorizations and exercising continuous supervision in the field of money laundering and terrorist financing prevention, which is the only way to identify certain deficiencies,” the bureau insisted. When Mäeker assumed his post at its helm in the summer of 2021, there were almost 650 licensed crypto-service providers in Estonia.

Do you expect more crypto companies to leave Estonia under its stricter regulations? Tell us in the comments section below.

Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 64,459.27
ethereum
Ethereum (ETH) $ 3,458.62
tether
Tether (USDT) $ 0.999043
bnb
BNB (BNB) $ 571.78
solana
Solana (SOL) $ 159.54
staked-ether
Lido Staked Ether (STETH) $ 3,467.10
usd-coin
USDC (USDC) $ 0.998411
xrp
XRP (XRP) $ 0.579769
the-open-network
Toncoin (TON) $ 7.35
dogecoin
Dogecoin (DOGE) $ 0.124645
cardano
Cardano (ADA) $ 0.443402
tron
TRON (TRX) $ 0.133995
shiba-inu
Shiba Inu (SHIB) $ 0.000019
avalanche-2
Avalanche (AVAX) $ 28.23
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 64,632.32
polkadot
Polkadot (DOT) $ 6.40
chainlink
Chainlink (LINK) $ 14.37
bitcoin-cash
Bitcoin Cash (BCH) $ 387.06
near
NEAR Protocol (NEAR) $ 6.17
uniswap
Uniswap (UNI) $ 8.16
litecoin
Litecoin (LTC) $ 73.07
leo-token
LEO Token (LEO) $ 5.83
dai
Dai (DAI) $ 0.998188
pepe
Pepe (PEPE) $ 0.000012
wrapped-eeth
Wrapped eETH (WEETH) $ 3,612.13
matic-network
Polygon (MATIC) $ 0.542431
internet-computer
Internet Computer (ICP) $ 9.53
kaspa
Kaspa (KAS) $ 0.179378
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.46
ethereum-classic
Ethereum Classic (ETC) $ 23.63
ethena-usde
Ethena USDe (USDE) $ 0.99749
aptos
Aptos (APT) $ 7.01
stellar
Stellar (XLM) $ 0.107361
monero
Monero (XMR) $ 160.76
blockstack
Stacks (STX) $ 1.89
hedera-hashgraph
Hedera (HBAR) $ 0.077385
maker
Maker (MKR) $ 2,908.98
render-token
Render (RNDR) $ 6.54
vechain
VeChain (VET) $ 0.031754
okb
OKB (OKB) $ 42.42
cosmos
Cosmos Hub (ATOM) $ 6.51
filecoin
Filecoin (FIL) $ 4.44
mantle
Mantle (MNT) $ 0.772838
crypto-com-chain
Cronos (CRO) $ 0.09423
arbitrum
Arbitrum (ARB) $ 0.759521
injective-protocol
Injective (INJ) $ 23.72
immutable-x
Immutable (IMX) $ 1.50
dogwifcoin
dogwifhat (WIF) $ 2.23
sui
Sui (SUI) $ 0.859148
bittensor
Bittensor (TAO) $ 295.42
the-graph
The Graph (GRT) $ 0.21419
optimism
Optimism (OP) $ 1.81
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,508.63
first-digital-usd
First Digital USD (FDUSD) $ 0.99415
rocket-pool-eth
Rocket Pool ETH (RETH) $ 3,873.07
bonk
Bonk (BONK) $ 0.000028
arweave
Arweave (AR) $ 28.76
floki
FLOKI (FLOKI) $ 0.000186
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,602.22
notcoin
Notcoin (NOT) $ 0.0162
lido-dao
Lido DAO (LDO) $ 1.80
ondo-finance
Ondo (ONDO) $ 1.10
aave
Aave (AAVE) $ 102.85
theta-token
Theta Network (THETA) $ 1.53
bitget-token
Bitget Token (BGB) $ 1.08
jasmycoin
JasmyCoin (JASMY) $ 0.030288
fantom
Fantom (FTM) $ 0.520897
based-brett
Brett (BRETT) $ 0.141351
thorchain
THORChain (RUNE) $ 4.08
whitebit
WhiteBIT Coin (WBT) $ 9.65
algorand
Algorand (ALGO) $ 0.159502
celestia
Celestia (TIA) $ 6.57
coredaoorg
Core (CORE) $ 1.40
pyth-network
Pyth Network (PYTH) $ 0.343317
jupiter-exchange-solana
Jupiter (JUP) $ 0.887896
ether-fi-staked-eth
ether.fi Staked ETH (EETH) $ 3,473.26
quant-network
Quant (QNT) $ 79.70
sei-network
Sei (SEI) $ 0.357227
mantra-dao
MANTRA (OM) $ 1.35
gatechain-token
Gate (GT) $ 7.71
elrond-erd-2
MultiversX (EGLD) $ 36.74
flow
Flow (FLOW) $ 0.620575
flare-networks
Flare (FLR) $ 0.020901
kucoin-shares
KuCoin (KCS) $ 9.70
eos
EOS (EOS) $ 0.598824
gala
GALA (GALA) $ 0.024415
beam-2
Beam (BEAM) $ 0.017763
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 3,532.46
axie-infinity
Axie Infinity (AXS) $ 5.97
bittorrent
BitTorrent (BTT) $ 0.00000091124415
bitcoin-sv
Bitcoin SV (BSV) $ 44.69
ethereum-name-service
Ethereum Name Service (ENS) $ 27.33
tokenize-xchange
Tokenize Xchange (TKX) $ 10.76
akash-network
Akash Network (AKT) $ 3.55
msol
Marinade Staked SOL (MSOL) $ 192.00
dydx-chain
dYdX (DYDX) $ 1.41
popcat
Popcat (POPCAT) $ 0.856803
tezos
Tezos (XTZ) $ 0.823832
neo
NEO (NEO) $ 11.41
starknet
Starknet (STRK) $ 0.613746