December 04, 2018 | AtoZ Markets – The Estonian Financial Supervision Authority (FSA) is reportedly studying imposing more restrictions on the cryptocurrency and token market sectors, as per media outlets.
The country’s financial watchdog intends to narrow the margin for those companies which provide access to services pertaining cryptocurrency, amid concerns those providers are involved in money-laundering activities.
Terrorism financing, on the other hand, tops those concerns the authorities have over digital assets, which pushed them to request trading platforms to comply with the financial standards of anti-money-laundering (AML) applications, and implementing risk measurement of what is known as KYC (know your customer), as a form of due diligence procedure that is implemented in the financial sector at a global scale.
Analysts read, in their turn, that the said updates in the country’s regulation will mostly impact exchanges in particular, while saying that doesn’t mean the rest of the market will not be affected.
Sort of crypto-phobia dominates the financial sector there
As the media reported over the last few months, Estonia witnessed a similar tendency of restriction on digital assets, amid fears they were used as a means to evade paying the financial commitment a tax payer has to pay, the step which financial experts see as contradictory to the fact that Estonia has always been known of its openness cryptos, in spite of there are only nine Bitcoin nodes in the country, compared to the numbers spotted in other EU countries. However, the history of cryptocurrency noted that Estonia had an attempt to create it state-backed crypto, under the name of Etherscan, which seemingly there are no more echoes for.
In a similar context, the Estonian financial watchdog is also said to be considering more constraints on ICOs, which were said to be looked at on a case-by-case basis, with noting that some of them might still be securities.
It is worth mentioning in this context, that Estonia is known to have raised funds through ICOs more than the other neighbouring countries did, as per research.