Estonia once licensed 55% of all crypto companies providing virtual currency services. However, the nation’s Financial Intelligence Unit (FIU) has tightened up regulations considerably in the last year, with up to 90% of companies facing relocation. Despite this, Estonia-based firm CryptoWallet has become one of the first companies to become eligible.
CryptoWallet COO Aleksander Smirnin stated:
“This sought-after license, once again awarded by the FIU, is the culmination of years of hard work and dedication by the CryptoWallet team. We are fully compliant, have the required shared capital, and are launching products that will enhance our users’ lives.”
The license renewal demonstrates that regulators are confident in CryptoWallet, a company launching a crypto card with 800 supported currencies later this year. But what did CryptoWallet have to do to comply with the new rules?
The New Requirements
Companies licensed in Estonia to sell cryptocurrencies now have to ensure the following:
- Viable product and business plan
- A minimum of €250,000 in capital reserves for companies like CryptoWallet
- Local presence in Estonia
Several other new rules and requirements also apply, with the majority of firms likely unable to follow them.
While it looks like Estonia’s crypto community is about to become a lot smaller, it’s also likely that the regulations will make crypto a safer industry for everyone involved, preventing fraud and bad actors.
Not every company will make it, but those that do look set for big things in what has become a thriving global industry.