Estonia’s new crypto regulations have led to the loss of licenses for nearly 400 crypto firms.
The country’s Financial Intelligence Unit has been implementing a 2022 law that requires companies to keep hefty capital reserves and genuine links to Estonia, which has led to the withdrawal of around 200 licenses by the firms themselves and the rejection of around the same number by the regulator.
The amended AML laws come as Estonia prepares to adopt the upcoming MiCA regulation over the next 18 months. Estonia has been seeking to repair its reputation after a scandal involving the laundering of Russian funds through the Tallinn branch of Danske Bank.
The country’s membership in the European Union is another factor that likely has contributed to the recently enhanced AML laws. As a result of the new regulations, Estonia’s registered crypto firms have dropped by 80%.