Estonia Grants First Licence Under New Regulations To Crypto Service Provider

A crypto service provider has received a licence from Estonia's Financial Intelligence Unit as a result of the nation's new regulatory framework, which became effective in March. “Striga Technology OÜ is the first entrepreneur, who is authorized for the first time to provide a virtual currency service since the amendments of the Money Laundering and Terrorist Financing Prevention Act,”  the regulator explained.

According to the Estonian FIU, 381 licences for crypto service providers have been granted since the year's commencement under the earlier, less stringent regulations. 135 businesses have submitted licence applications in response to the new regulation, the regulator reported in June. In the meantime, 18 licences have had their revocations this year, and 94 crypto service providers have renounced their authorizations.

The financial authority made it clear that as of September 21, 177 licences for virtual asset service providers that had previously been given by the FIU were still in effect.

The director of the Estonian Financial Intelligence Unit, Matis Mäeker, said: "More than a third of virtual asset service providers will seek out new countries with lower quality of supervision, and regulations not yet meeting the risks and international standards related to virtual asset service providers."

Estonian Finance Minister Keit Pentus-Rosimannus met with U.S. Treasury Secretary Janet Yellen in January to talk about how the two nations may exchange information to determine the best procedures for regulating cryptocurrency.