Changes to cryptocurrency license regulation in Estonia
Due to the necessity to increase surveillance and decrease risks related to companies registered in Estonia and providing either the crypto wallet service or the crypto exchange service, the Parliament will soon adopt the following amendments to relevant laws.
Firstly, the state fee will increase almost 10 times and will be 3300 euros in the future. This will be for both of the aforementioned licenses if applied together.
There will be more thorough background checks on the people involved with the company. Right now, the checks are mostly formal but in the future the Financial Intelligence Unit will check the reputation of the service provider as well as the suitability. The people offering the service must have the knowledge, ability, experience, professional experience required and also a good reputation.
The board of the business has to be located in Estonia and in case of a foreign business, they have to start an affiliate in Estonia.
This will all increase the licensing procedure in time which know takes only a few weeks. In the future the process will take up to 3 months, up to 6 months if prolonged by the FIU.
The new law has not been adopted yet but will likely be adopted before the beginning of summer. There have been reports of an increased amount of applications before the changes take effect but ultimately, even the existing license holders have to comply by the end of 2019 or they will lose their license.