The Estonian government has passed a bill requiring so-called crypto service providers to adhere to new requirements. Under the proposed legislation, crypto companies will firstly come under the supervision of the Estonian Financial Supervisory Authority (FSA), or the Financial Supervision Authority.
With the law, responsibility for registered crypto providers no longer lies with the Financial Intelligence Unit (FIU). Until recently, they were busy complying with the anti-money laundering regulations (AML). Mart Võrklaev, the Estonian Minister of Finance, says:
“If these companies want to continue operating, they will meet the necessary requirements and I believe that anyone who takes this seriously and wants to provide a service can also obtain a new license from the Financial Supervisory Authority.”
The FSA’s mandate for licensing crypto companies is expected to start in 2025. Providers with FIU licenses will have to reapply for an FSA license in the same year under the new requirements.
In that respect, it is somewhat similar to the shift that is also taking place in the Netherlands, whereby the regulation of the crypto market is being placed on the plate of the Netherlands Authority for the Financial Markets (AFM), and is moving away from De Nederlandsche Bank (DNB).
The proposed law is awaiting approval by the Estonian parliament. It is a consequence of the MiCA regulations that came over from the EU. This stands for: Markets in Crypto Assets.
The law also changes the requirements for securities prospectuses. Previously, companies had to draw up detailed prospectuses if they wanted to raise more than 5 million euros through the sale of bonds. The limit has now been increased to 8 million euros.
The law also tightens reporting and operational requirements for crypto service providers registered in Estonia.
Under the new law, they will also have to pay up to 5 million euros for violating anti-money laundering rules. The amounts are a significant increase compared to the previous 40,000 euros.
Source: https://bitcoinmagazine.nl/nieuws/nieuwe-regelgeving-voor-cryptobedrijven-in-estland
