Estonia approves a crypto service providers regulation bill
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According to ReportsAccording to the national media, Estonian authorities have approved a law intended to oversee Service providers. The bill still needs to be approved by parliament, and this is in progress.
FSA to Assume Regulating Role
The proposed legislation would subject crypto services providers to the oversight by the Financial Supervision Authority (FSA). The Financial Intelligence Unit, or FIU, registers cryptocurrency services providers and mandates they adhere to Anti-Money Laundering Regulations (AML), and refrain from financial mischief.
Mart Võrklaev, the Finance Minister of Estonia, believes that any reputable service provider should have the ability to obtain a new license from the FSA. The maximum fine for AML violation is 40,000 euros ($43.450), but the new law may see fines as high as 5 million euros ($5.2million).
Previously, companies that wanted to raise more than five million euros via shares or bonds were required to prepare a detailed, time-consuming prospectus. The new law increases this threshold to $86,9 million.
Estonia’s Crypto Regulation Journey
In 2017, Estonia established itself a crypto friendly nation by passing legislation which favored crypto firms, and simplified registration. In 2020, however, after a major scandal that was unrelated to cryptocurrency, Estonia was forced to adopt and enforce stringent measures in order to regulate the cryptocurrency market.
In 2020, Estonia cancelled 500 licenses of crypto companies issued by FIU because they did not begin operations within six months after registration in the nation. Following months of investigation by the police, the number of crypto firms licensed in Estonia fell from 1,234 at end of 2019 down to 353 in Sept 2020.
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