Cryptocurrencies in Estonia

2020

Central Bank of Estonia launched a project to create a national cryptocurrency

In early October 2020, the Bank of Estonia, in collaboration with technology companies Guardtime and SW7 Group, launched a multi-year project to create a national cryptocurrency. The work began with a study of the technological system used by the government of the country. More details here.

Estonia revoked 500 licenses from cryptocurrency companies. They are suspected of money laundering

In mid-June 2020, Estonia revoked 500 licenses from cryptocurrency companies suspected of money laundering.

Estonia was one of the first EU countries to license cryptographic companies. However, after Denmark Danske Bank transfers of hundreds of billions of illegal funds were discovered in the local division of the largest bank, the dollars country was at the center of the largest To Europe scandal related to. money laundering

Regulators are concerned that licensed cryptographic firms use Estonian credentials for fraudulent actions in other places. According to Madis Reimand, who heads Estonia's financial intelligence unit, licenses were revoked from more than 500 companies, which accounted for a third of the total number of permits issued in 2019. The recall concerned primarily companies that did not start operations in Estonia six months after obtaining a license.

Estonian authorities revoked 500 licenses from registered cryptocurrency companies

who are under the supervision of Estonian regulators, "Reimand explained.

He added that more than half of the 900 continuing cryptocurrency companies also risk losing licenses, since they do not conduct any activities, and their leaders are outside the country.

Industry risks have risen amid "extremely rapid" growth in service providers. In 2019, the Estonian government tightened the rules for obtaining licenses to work with cryptocurrencies. In particular, the fee increased from €345 to €3300, and the period for considering documents increased from 30 working days to three months. In addition, now a licensed company must be based in Estonia or open a division in the country.^[1]

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