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Two thirds of Estonian crypto businesses lose their licenses

One of the countries lauded as being among the most crypto friendly in the European Union revoked the licenses of more than 1,000 crypto companies in 2020.

According to news outlet Postimees, Estonia’s Financial Intelligence Unit (FIU), has revoked the licenses of nearly 70% of virtual currency companies operating in the country during the current year.

Veiko Tali, the Deputy Secretary General of the Government Committee for the Prevention of Money Laundering and Terrorist Financing stated:

“We need to monitor the development of new technologies and manage the associated money laundering risks.”

According to Cointelegraph, the media outlet also noted that there are 400 crypto-related service providers remaining with the suitable licenses in Estonia following the purge. The financial watchdog reported that 900 such companies operated in the country this past year.

At that time, FIU head Madis Reimand called the financial watchdog’s actions the “first step in tidying up the market.”

In 2017, the country was seen by many as a crypto trailblazer with a series of laws seemingly intended to encourage exchanges and ICOs. Nevertheless, the regulatory landscape in Estonia has since changed, and goes beyond the requirements of the EU’s 2019 Know Your Customer laws, making the path for licensed crypto companies attempting to comply with local regulations more difficult.

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