Estonia Drives Out 400 Crypto Firms: Thrilling Change Ahead!
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Estonia Drives Out 400 Crypto Firms: Thrilling Change Ahead!

written by John Murphy | May 9, 2023

According to recent news, Estonia’s money laundering regulator demonstrates several issues established within the local cryptocurrency companies. These issues involve plans of nonsensical businesses and dodgy execs and resulted in Estonia Drives Out 400 Crypto Firms.

Keys Takeaways:

  • Money laundering Regulators of Estonia identify different issues like dodgy execs and plans of nonsensical businesses.
  •  In Estonia, the government improved the implementation of anti-money laundering laws and terrorist financing prevention.
  • 400 Virtual Asset Services canceled their approval because of these issues.
  • Due to the amendments in AML, 200 domestic crypto services are willingly closed on 15 March.
  • The amendments in AML laws result in the current conflict between Ukraine and Russia.

Recently the government straightened the implementation of anti-money laundering laws and terrorist financing prevention in Estonia. Following this, nearly 400 Virtual Asset service providers have willingly closed and canceled their approval.

Estonia Drives Out 400 Crypto Firms

The amended laws enlarged the legal connection of the required company to Estonia and described the VASP’s scope. Additionally, it expanded the requirement of information and capital reporting on the increased licensing fees with the initiation of the Financial Action Task Force Travel Rule.

Nearly 200 domestic crypto service providers are willingly closed after the changes in the AML laws on 15 March. Financial interest unit. Financial Intelligence Unit (FIU) of Estonia 0n 8 May.

Estonia Drives Out 400 Crypto Firms
Source: bitcoin

Financial Intelligence Unit director Martis Maker stated that We experienced circumstances while renewing authorizations that would amaze any supervisor.

There were 100 functional cryptocurrency companies registered in Estonia as of 1 May after the significant clear-out, according to the FIU.

To provide certain circumstances without knowing the actual individual, certain companies listed corporate contacts and board members. While the other kept on file many individuals with counterfeited professional histories.

Additionally, it seems like several firms used similar business plans that they had copied and pasted from one another. They were likewise shown to be void of any sense or relationship to Estonia.

Over the past few years, Estonia has made a concerted effort to adopt robust AML regulations everywhere. This is because it was found in 2018 that the Denmark megabank Danske Bank’s Estonian branch had been used to launder almost $235 billion in criminal funds.

The current conflict between Ukraine and Russia has also had an effect. Estonia has campaigned for strict AML rules in collaboration with the U.S. to cut off profits supporting Russia’s war machine and secure global financial networks.

Moreover, its participation in the European Union means it will soon have to adopt the impending Markets in Crypto-Assets (MiCA) legislation. It came to take impact in 2025. This is another factor that assisted in enhancing the AML laws.

MiCA will impose strict terrorist and AML prevention standards on cryptocurrency enterprises.

The Reaction of the Crypto Community to Estonia Drives Out 400 Crypto Firms

Mr Bitcoin took to Twitter and announced that after implementing newly improved AML legislation in March, Estonia lost 400 crypto-related businesses, according to the financial regulator.

Uncover took to Twitter and announced that 400 crypto companies left Estonia due to new rules.

JackOFAllTechs took to Twitter and announced that money laundering regulators in Estonia identified issues like nonsensical business plans and dodgy execs.

Do You Know?

  • Estonia implemented new laws in May 2023 that has resulted in the closure of 400 crypto firms.
  • It is estimated that these laws will affect over 7,000 people who are employed in the crypto industry.
  • The new laws require companies to register with the Financial Intelligence Unit of Estonia, pay a fee of €8,000, and the owners of the companies must have a clear criminal record.
  • Estonia is the first country in the world to introduce such regulations on the cryptocurrency industry.
  • Despite the closure of 400 crypto firms, the country is still home to a number of blockchain-based startups, as well as some of the most advanced cryptocurrency exchanges in the world.

Crux:

The Estonia Fund laundering regulators highlight issues like plans of nonsensical businesses and dodgy execs. The government of Estonia enhances the implementation of anti-money laundering laws and terrorist financing prevention. Due to these amendments, many companies are willingly closed.