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The new government in Estonia still plans to pursue an agenda to tighten the rules for companies dealing with cryptocurrencies. The Ministry of Finance wants to strengthen anti-money laundering measures in the context of a major money laundering scandal involving Danske Bank.

Estonia has revoked the licenses of more than 1,000 crypto companies in 2020

Per a report of ERR news, the Treasury Department does not intend to deviate from the previous administration’s agenda regarding the regulation of crypto assets such as bitcoin (BTC). The current bill was adopted from Jüri Ratas, the former country’s prime minister and head of the Center Party.

While Estonia was considered a crypto-friendly hotspot in the region a few years ago, especially during Taavi Rõivas’s mandate, the situation has recently changed. Before the ministry drafted legislation to tighten regulations, Estonia issued more than 1,300 permits.

With Ratas law, that was more than 1,000 licenses from crypto companies withdrawn, which represents 70% of Estonia’s digital asset companies. However, the government has not targeted the new rules specifically for the crypto industry. In fact, they wanted to target a case of a larger illicit cash flow of more than $ 220 billion laundered.

Existing licensed crypto companies must reapply for a license

The existing legislation also aims to give powers to the financial supervisory authority (Finantsinspektsioon) to oversee the national crypto industry. Previously, the Financial Intelligence Unit (FIU) was the entity responsible for the supervision and licensing of the sector.

According to local media, the existing 381 licensed companies dealing with cryptos should reapply for a license from the Finantsinspektsioon. Referring to the adviser at the Ministry of Finance, Erki Peegel, ERR News says the measure is not intended to shut down operators.

However, the advisor warns that the nation could support about 50 to 100 crypto businesses. The media channel adds that the new cabinet does not consider the rules for obtaining a permit to be stricter enough.

What do you think of Estonia’s current position on cryptos? Let us know in the comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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