New controversial law on cryptocurrencies reduced the number of registered firms in Estonia by about 80%. These data were published by experts from the Estonian Financial Intelligence Unit (FIU).
About 200 licenses were revoked by the firms themselves, and about the same number were rejected by the FIU, which was tasked with following the 2022 law that requires firms to have substantial reserves and ties to Estonia.
“In renewing permits, we have encountered situations that would surprise any regulatory agency,” said FIU Director Matis Mäeker, adding that “suspicious circumstances” in applications sometimes indicate links to illegal activity.
Under the new FIU policy, companies operating in the country must renew their licenses under a new law that took effect in March.
The rules, which include minimum capital requirements and compliance experts on staff, have caused the number of registered cryptocompanies to plummet from 381 in December to 177 last September.
In September 2022, cryptocurrency banking company Striga became the first to be licensed under Estonia’s new legal regime.