Estonia revokes crypto licenses for more than 100 firms in the country

Estonia which is one of the most digitized countries in the globe and was one of the most crypto friendly in the European Union  has revoked the licenses of more than 1,000 crypto firms in 2020.  According to news outlet Postimees, Estonia’s Financial Intelligence Unit, or FIU, has revoked the licenses of roughly 70% of virtual currency companies operating in the country this year. Veiko Tali, the Deputy Secretary General of the Government Committee for the Prevention of Money Laundering and Terrorist Financing, said the remaining crypto firms also required “close attention” given the potential risks. He states, "We need to monitor the development of new technologies and manage the associated money laundering risks."

The media outlet stated that there are 400 crypto-related service providers remaining holding the appropriate licensess. The financial watchdog reported that 900 such firms operated in the country last year.

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