The cryptocurrency community as a whole expects that they had passed the stone age. The stone age referred to the early development of the growing industry when it tried to gain acceptance and bypass several stringent regulations in several European countries and particularly Asian countries.
However, those times have seemed to be behind the booming investment space, as many countries have seemingly adopted the cryptocurrency trade into their system. Unfortunately, in a new report, Estonia’s government takes a U-turn back to the early stages. It has now laid out strict regulations for crypto trading firms and exchanges in the country.
Finantsinspektsioon will now be tasked to oversee crypto activities in the country
The European country had been one of the first countries in the continent to legalize and adopt digital assets fully. The new update from the nation’s financial body is a shock to everyone, including several analysts who believe it threatens many crypto firms’ operations in the country. Rumors have it that some unfortunate incidents around the nation’s crypto industry have now forced the government to enforce the new rules.
The country’s financial regulatory body, Finantsinspektsioon, is now being tasked to lead all affairs related to cryptocurrency regulation and company registration in the European nation. The Finantsinspektsioon will also award the new crypto firms’ license looking to carry out trading in the country.
The new regulation also means that the 380 firms who have priorly registered before will have to re-register under the Finantsinspektsioon, in compliance with the new updated policy. Erki Peegel, a finance expert in Finantsinspektsioon, has calmed down the fears of several crypto analysts and enthusiasts who believe that the new policy will hamper the growth of cryptocurrency in the country.
The new policy is to combat money laundering aided by many crypto firms
Peegel’s statement believed that compliant crypto firms would have no problem with the new rules. Still, he expects non-compliant cryptocurrency companies to close down due to a lack of adherence to the new policy. The country’s sudden u-turn to the cryptocurrency space is becoming a hot topic of discussion among the players in the country.
In a report mid last year, the country had revoked licenses of more than 400 crypto firms due to the belief that they had a hand in a $220 billion money-laundering scam that was uncovered at the time. However, the attack on crypto companies has been attributed to the role they play in aiding money laundering, hence the need for a new regulation and guidance policy.
Veiko Tali, the country’s head of AML body, had praised the government for the new approach, which he feels is fair for everyone involved, and hoped that it does not hamper the cryptocurrency’s growth space in the country.
