Estonia to implement new AML regulations for crypto companies

The government plans to complicate the process of companies entering the crypto market

14.03.2022 - 11:45

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What’s new? On March 15, the amendments to the law on tightening measures to prevent money laundering and terrorist financing will come into force in Estonia. The amendments include high registration fees and stricter regulatory oversight.

Information on the Politico website

What does the official say? Estonian Minister of Finance Keit Pentus-Rosimannus has said that the government plans to make it harder for companies to enter the crypto market. The new regulations will tighten the licensing process, which most participants in Estonia’s cryptocurrency market believe has been too loose. The first licensing regime appeared in 2017 and allowed many companies to easily obtain an Estonian license and operate from anywhere in the world.

What amendments have been made? The amendment to the AML Act provides for higher registration fees, stricter due diligence obligations, and regulatory scrutiny. The cryptocurrency companies will have to ensure that some of their infrastructures are physically present in the country, which was not previously required. The organizations providing digital wallets and online exchanges will have to pay 100 000 EUR to obtain an Estonian license. The companies that are engaged in asset custody will need a share capital of 250 000 EUR.

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