The Estonian government has updated a number of requirements for service providers related to the turnover of virtual assets.
According to a statement from the Estonian Ministry of Finance, the Estonian government has approved draft legislation for more effective regulation. The draft law will still have to pass parliamentary readings to come into force.
The main criteria for stricter control:
- Raising the minimum share capital for cryptocurrency businesses from €12,000 to €120,000 and up to €350,000 for certain types of crypto businesses.
- Crypto businesses were obliged to perform customer verification.
- Companies must be connected to Estonia to operate.
With the help of the draft law, the authorities plan to eliminate inactive companies and create conditions to prevent the registration of fly-by-night companies. Since 2020 Estonia has consistently tightened control over the crypto industry to prevent money laundering and other illegal activities. But even under these conditions, Estonia remains one of the most loyal countries to crypto-related business.
