In an attempt to reform the entire regulatory system, financial regulators in Estonia’s Baltic country intend to cancel all crypto exchange licenses. After removing approximately 2,000 licenses in the last year, this decision is being made.
According to a local newspaper, Matis Maeker (head of Estonian Financial Intelligence Unit) urged the state for a resumption of regulatory licensing.
Maeker believes that the public is unaware of the risks associated with cryptocurrency trading. These risks include money laundering, terrorist financing, wallet hacks and other financial impropriety. Maeker stated that “these risks are very, very large.” We must react quickly and cardinally.” Maeker was previously the head of the Anti-Money Laundering section at the Financial Supervision and Resolution Authority.
Estonia has more than 400 VASP license-holding companies. According to Maeker, this number is more than the VASP licenses across the whole European Union. Officials suggested that Estonia doesn’t benefit from companies using the licenses, even though it issued them.
Maeker stated that Estonia’s crypto industry doesn’t create jobs or contribute tax. Maeker explained that the industry will only be viable and competent if it has strict capital requirements. FIU officials propose that crypto companies have at least 350,000 euros (or $404,000) in cash or securities. He believes this will help with regulation.
