December 14, 2020 | AtoZ Markets – For a long time, Estonia has attracted the cryptocurrency business by simply registering and licensing operations related to cryptocurrencies. Over the past few years, thousands of cryptocurrency service providers have settled in Estonia, which has attracted increased attention from the international community.
Estonia revoked licenses of crypto firms
The country has become not just a Mecca for the crypto business, but also a "hotbed" of organizations that are involved in money laundering through cryptocurrencies. To rectify the situation and maintain its reputation in the global political and financial arenas, the country's leadership decided to revoke licenses from companies that conducted suspicious transactions or failed to provide documentation for state control. As a result, over a thousand cryptocurrency companies lost their licenses.
“We need to monitor the development of new technologies and manage the associated money laundering risks,” said Veiko Tali , deputy head of the government commission for the prevention of money laundering and terrorist financing.
Tali also stressed that there are no conditions for strict state control in the country, so in 2019 the authorities issued too many licenses. However, in 2020, the government passed a number of laws that tightened the licensing mechanism for cryptocurrency businesses.
Currently, over 400 companies - providers of cryptocurrency services are registered in Estonia. However, the lion's share of these organizations' clients are not located in Europe. The main consumers of services are residents of the United States, Venezuela, Russia, Vietnam, Indonesia, Brazil, India and Iran.
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