TL; DR Breakdown
- Estonia suggests stricter crypto regulations to curb money laundering issues in the country.
- The Estonian FIU will continue to revoke crypto service licenses if it finds the company in question as a security risk.
Recently, Estonia crypto regulators revised the content within their crypto regulations. In the process, the party announced the possibility of banning all crypto business licenses in the country. In their opinion, Estonia has been graceful enough to contribute to crypto growth with crypto-friendly regulations. However, the businesses are of no help to the country’s revenue production.
The crypto sector within Estonia falls under the regulation of the Estonian Ministry of Finance. Under the ministry is the Financial Intelligence Unit, which overlooks financial crime in the country. Additionally, the Tax and Customs Board and Financial Supervision and Resolution Authority contribute to the sanity of its economic systems.
Being a member of the EU, the country follows the 5AMLD and CFT regulations under the Union. The recently appointed head of the Financial Intelligence Unit, Matis Mäeker, is one of the more influential voices campaigning for tougher laws. Currently, over 2,000 Estonian crypto services have lost their licenses, solidifying the seriousness of the issue.
Estonia resonates with money laundering worries
As per Mäeker’s interviews on different outlets, he believes the government should start afresh with regulations. Moreover, he insisted on stricter supervision to prevent crypto’s involvement in illegal activities.
Companies will have to exercise their due diligence in annual profits and prove their straightforwardness during audits. The proposed regulations suggest an increased minimum capital from 12 000 Euros to 350 000 Euros.
Shitcoins.club is one of the crypto services that can live to tell the tale of Estonia’s increased hostility to cryptos. The FIU terminated its license while ranking its services as a financial security risk. Evidently, Estonia regrets its decisions in standing as a potential crypto hub and wishes to rectify this factor.
Differing outlook on digital currencies
China is among the countries known for its stringent regulations against crypto. Following its ban against crypto, more exchanges and other crypto service providers are leaving the country to seek refuge overseas.
As a result, the US is now controlling most of Bitcoin mining activity worldwide. Estonia’s move makes it abundantly clear that not all countries are still open to crypto adoption.
Nonetheless, countries like El Salvador are moving a step closer to realizing full Bitcoin adoption. Its decision to make Bitcoin a legal tender in the country still spreads a lot of criticism among significant crypto enthusiasts.
Nevertheless, these vital examples show the great divide between countries accepting and rejecting cryptocurrencies. The future depends on what path other countries take, with the most critical future under threat being crypto’s widespread adoption.