The Estonian Financial Intelligence Unit (FIU) has made it significantly harder for crypto firms to receive a license to provide their services, with an estimated 90% of the country’s crypto community no longer set to receive or renew their license.
Despite this, some companies are still receiving regulatory approval. One of the first to renew its license since the restrictions tightened last year is CryptoWallet, a company launching a crypto card with 800 supported cryptos later this year.
Aleksander Smirnin, CryptoWallet’s COO said: “This sought-after license, once again awarded by the FIU, is the culmination of years of hard work and dedication by the CryptoWallet team. We are fully compliant, have the required shared capital, and are launching products that will enhance our users’ lives.”
The license is a vote of confidence from regulators in a space increasingly stricter in an ongoing effort to prevent fraud and protect the industry.
New Rules for Crypto Firms
Estonia, which once licensed 90% of the world’s virtual currency providers, now requires companies like CryptoWallet to hold a minimum of minimum of €250,000 in capital reserves. Companies must have a local presence in Estonia, rather than simply registering from abroad. They must also hold a viable business plan and product, and perform stringent KYC and AML checks.
All these new rules are in place to weed out companies unsuitable for a healthy industry, and while in the short-term, many companies may face issues in getting a license, those who receive a license could be set for major success.