Estonia online crypto news Over 1000 Crypto Firms Licenses Have Been Revoked
Several cryptocurrency firms in Estonia have been met with a harsh reality. The Estonian government has revoked the licenses of companies numbering close to 1000. This comes in the wake of increased money-laundering concerns plaguing the crypto industry in the Country.
The Estonian Ministry of Finance revealed last week that it’s Financial Intelligence Unit has revoked more than 1,000 crypto companies licenses in 2020. The country, which was once a global hub for crypto traders, enthusiasts and entrepreneurs, took protective action against money laundering risks in the crypto industry in 2019.
The announcement is off the back of the meeting with the Government Anti-Money Laundering Commission. The main discussion of the meeting was centered on the regulation of cryptocurrency service providers. The deputy head of the AML Commission and secretary general of the Ministry of Finance, Veiko Tali said that, “there is a need for constant monitoring and tight regulation for crypto service providers.” He further stressed that the overall industry is in need for continuous heightened attention.
He further explained that last year, several businesses expressed their desire to acquire a license to operate different crypto services, and a substantial number of licenses were sent out. However, the Estonian government didn’t have the resources for intervention an scrutiny. He added that the amendments made this year have helped to tighten the licensing of crypto service providers.
In a statement, the finance ministry said, “In 2020, the Financial Intelligence Unit has withdrawn more than 1,000 activity licenses of virtual currency companies. At the same time, there are still about 400 companies active in Estonia that offer virtual currency services.The connection of many of these companies to Estonia is minimal and the clientele of some of the companies is from remote countries,”
In July, more than 500 cryptocurrency firms had their licenses revoked.
Tali mentioned that the regulatory commission plans to give cryptocurrency the proper attention next year, stressing that, “A number of important regulatory changes are planned for the services of virtual currencies in order to further regulate the field.”
A Thriving Industry
A survey carried out by the Financial Intelligence Unit showed that Estonia-based crypto service providers have the most number of customers in the U.S. Iran, Brazil, Vietnam, Russia, Venezuela, and India are other countries with high number of customers working with crypto service providers in Estonia.
According to the survey, the turnover by the industry in the first 6 months of 2019 was $1.46 billion, which is more than double the amount generated in 2018
