Estonia Clarifies Upcoming Regulations, Will Not Ban Crypto Holding or Trading.
05 Jan 2022, 08:00
Estonia Clarifies Upcoming Regulations, Will Not Ban Crypto Holding or Trading
The government of Estonia has approved legislation tailored to improve oversight of its crypto sector which expanded rapidly due to favorable regulations and business climate. The new law, which is yet to be adopted, will introduce stricter requirements for service providers without preventing their clients from owning or exchanging cryptocurrencies.
Authorities in Tallinn Draft Stricter Rules for Crypto Service ProvidersThe executive power in Estonia has prepared and approved draft legislation designed “to more effectively regulate virtual asset service providers (VASPs).” The main goal, the Finance Ministry explained on Sunday, is to mitigate the risk of financial crime through the crypto platforms registered and operating out of the Baltic nation.
The new regulations, which come in the form of a revised draft law submitted to the Estonian parliament, require VASPs to identify their customers in a way that would link them to their transactions. The regulations expand upon the ban on open anonymous virtual accounts introduced in 2020 after Estonia’s crypto-friendly regulations attracted numerous license applicants.