Estonia crypto companies, including exchanges, will be seeing more thorough regulation from the local authorities, as they seek to clamp down on illegal financial transactions in the country. Recently, Estonia was named in Europe’s largest dirty-money scandal report.
Estonia records increased illegal financial transactions
According to a Bloomberg report on Thursday, a huge amount of illegal money, running in billions of dollars, was transacted into the country via the Danske Bank A/S unit in Estonia. Following the latest step by the authorities to prevent such transactions, more attention will be channeled to Estonia crypto companies.
The regulators fear that many licensed Estonia crypto companies could be using their credentials to facilitate illegal transactions; hence, they are directing more strict regulations towards the crypto industry, especially the digital currency exchanges that help users to manage their cryptocurrencies, such as Bitcoin.
Already, the regulators have reportedly stripped off over 500 permits from Estonia crypto companies since this year, said Madis Reimand, the head of Estonia’s Financial Intelligence Unit (FIU). During a phone interview with Bloomberg, Reimand said:
This is a first step in tidying up the market, allowing us to take care of the most urgent issues by permitting operations only for companies that can be subjected to Estonian supervision and coercive measures.
More than 900 Estonia crypto companies might lose their permit
Per the report, the crackdown is directed mostly to entities in the country that failed to begin operations for at least six of receiving permits. Fear lingers as over 900 cryptocurrency companies might lose their permit, given that they have no operations in the country, and the manager resides abroad, said Reimand.
More so, the regulators will continue to observe a more strict process before licensing any company. According to Andre Nomm, Estonia gave out licenses too easily, which has, in turn, created “credibility for some evil schemes.”