Estonia revokes licenses of more than 1,000 crypto companies

In 2020, Estonian authorities revoked the licenses of more than 1,000 companies active in the digital-asset sector, according to Postimees.

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Nearly 400 crypto-service providers remain in operation. The Estonian Ministry of Finance notes that many companies have only a minimal link to the country, and most of their users reside in distant jurisdictions.

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Veiko Tali, deputy head of the government’s anti-money laundering and counter-terror financing prevention committee, said the cryptocurrency industry continues to warrant close scrutiny.

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“In the area of virtual currency services, several important changes are planned for next year to further regulate this sector,” the official said.

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In July, Estonia tightened the rules for registering crypto companies amid a scandal involving the laundering of $220 billion through the local branch of Danish Danske Bank.

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The decision window was extended to 120 days, and the fee rose to €3,300. Among the licensing prerequisites were the existence of a payment account, share capital, and the physical presence of staff in the country.

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As reported in September, Estonia’s financial intelligence unit suspected some participants in the online-residency program (e-Residency) of involvement in cryptocurrency fraud.

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