Estonia: Over 1,000 digital currency startups lost license in 2020 Business
Over 1,000 cryptocurrency startups in Estonia lost their license in 2020 after a busy year for the regulator, according to figures emerging from the Ministry of Finance.
At a meeting of the Government Anti-Money Laundering Commission, Finance minister Veiko Tali was quoted saying the figures were evidence digital currency firms required “heightened attention” from regulators to ensure compliance.
It comes after Estonia emerged as an alternative jurisdiction for digital currency companies, providing a licensing regime which had proved popular with regional startups in the sector. After issuing a flurry of licenses in the past year, the authorities have been faced with monitoring and enforcing compliance often against companies with little tangible connection to the country.
Estonia Revokes More Than 1,000 Crypto Firms Licenses This Year
Over 1,000 cryptocurrency firms’ licenses have been revoked in Estonia this year as the country tightens the oversight of the crypto industry amid heightened money-laundering concerns.
1,000+ Crypto Firms Lost Their Licenses This Year
The Estonian Ministry of Finance revealed Friday that the country’s Financial Intelligence Unit (FIU) has revoked more than 1,000 crypto companies’ licenses this year. Estonia, once a Mecca for cryptocurrency entrepreneurs, started worrying about the money-laundering risks in the crypto sector last year.
The announcement follows the meeting of the Government Anti-Money Laundering Commission where the issues surrounding the regulation of cryptocurrency service providers were discussed. Veiko Tali, the secretary-general of the Ministry of Finance who serves as the deputy head of the commission, stressed that “the monitoring and regulation” of crypto service p
1,000 Cryptocurrency Companies Lost Licenses in Estonia in 2020
The tiny European country was a way out for crypto companies searching for regulatory approval. But the law has proven stricter than imagined.
Over a thousand startups lost their crypto licenses in Estonia this year.
The country s Ministry of Finance rang the warning bells after the crypto sector was linked to a high risk of money laundering.
Crypto scammers have allegedly thrived under a separate Estonian legal program as well.
More than 1,000 crypto startups headquartered in Estonia lost their legal licenses in 2020, the country’s Ministry of Finance said last week, as per a report on local news outlet