• Estonia has implemented new regulations for crypto-related business, raising the standard for companies operating in the country.
• CryptoWallet has successfully renewed its license under these stricter conditions, paving the way for a new crypto card.
• While many companies may struggle to meet the higher standards, these changes are seen as long overdue and will have a positive overall impact on the sector.
Crypto Regulation in Estonia
Estonia is set to bring about significant changes to the crypto market this year through new legislation by its Financial Investigation Unit (FIU). The purpose of this is to impede criminal financial activity and combat risk in the crypto sector. These regulations require better KYC/AML compliance, personnel management and demonstrate that companies have a viable product/business model with at least €250,000 in capital reserves.
CryptoWallet Renewed License
Despite these tougher conditions, CryptoWallet has successfully renewed its virtual asset license and is keen to take advantage of these favourable conditions. The startup plans to launch a crypto card with over 800 supported coins later this year.
Headwinds and Tailwinds
The new regulations present both headwinds and tailwinds for different players in the industry – while 90% of companies may be unable to meet them, they are viewed as necessary steps that will benefit the sector overall by increasing trustworthiness.
Impact on Other Companies
These rules will also increase competition amongst businesses as failure to comply could lead to removal from local markets or even deactivation of accounts/licenses thereby reducing their access points for customers.
Overall it is clear that Estonia is looking out for its citizens’ best interests by creating more stringent guidelines which strive towards safer financial operations within its borders – creating an environment where users can trust platforms and services more easily when making transactions involving cryptocurrencies.