- This is due to pressure from regulators.
- New checks reveal ‘suspicious’ behavior
- About 200 licenses were revoked by the firms themselves
- Approximately the same number was rejected by the Fin. country’s intelligence
Regulators in Estonia occupied a tougher stance due to concerns about money laundering. As a result, the number of crypto firms registered in Estonia has fallen by 80%.
The new crypto asset law, which requires companies to have significant capital reserves and real ties to Estonia, has reduced the number of registered firms in Estonia by about 80%. The regulator said in a statement that about 200 licenses were revoked by the firms themselves, and about the same number were rejected by the Estonian financial intelligence unit.
Director of the Financial Intelligence Unit Mathis Mäeker stated:
“During the renewal of permits, we have seen situations that would surprise any supervisory authority. Suspicious circumstances in the statements sometimes pointed to links to illegal activities.”
Mäeker added that the applications indicated persons appointed to the boards of directors without their knowledge or using forged documents.
“Soon we will return to a normal life in terms of supervision, where we can move from assessment on paper to daily on-site supervision” Mathis said.
Estonia is also seeking to rebuild its reputation after a Russian money laundering scandal through a branch of Danske Bank. Also, since the country is a member of the EU, it will have to adopt the MiCA rules, which require wallet providers and exchanges to obtain a license.
