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The Estonian government has sanctioned a bill aimed at enhancing the regulation of cryptocurrency firms within the region. As per the new legislation, cryptocurrency service providers are required to secure a license from the Financial Supervision Authority (FSA).
The Estonian government has enacted a new bill that sets forth legal obligations for cryptocurrency service providers. The primary objective of this initiative is to bolster market supervision and align local regulations with the European MiCA legislation, according to reports from local media.
Under the new regulations, which will take effect immediately following approval in the parliamentary vote, cryptocurrency firms will need to obtain a license from the Financial Supervision Authority (FSA) to operate in the region. The FSA will serve as the main regulatory body for the local cryptocurrency market.
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Previously, cryptocurrency service providers were required to register with the Financial Intelligence Unit (FIU) and adhere to anti-money laundering (AML) regulations to function in the area. The FSA license will be accessible starting in 2025, and existing cryptocurrency firms must submit their applications by the end of this year.
The new legislation imposes increased penalties for firms that breach the region’s regulatory guidelines. Specifically, the fine for non-compliance with AML regulations will rise from €40,000 to €5 million. Mart Võrklaev, the Estonian Minister of Finance, stated that the new bill will align the country with EU regulatory standards for crypto-assets as outlined in MiCA.
In addition to tightening regulations for cryptocurrency enterprises in the region, the new bill will also modify the requirements for companies looking to raise capital through shares or bonds. Previously, the threshold for such issuances was set at €5 million. Following the enactment of the new bill, this threshold will be increased to €8 million.
The MiCA bill received approval from the European Parliament in 2023 and will officially come into effect across the EU by the end of this year. Estonia is recognized as one of the most cryptocurrency-friendly regions in Europe, having developed an effective digital economy and society over the past three decades. CoinsPaid operates under a local license.
Сообщение Estonia Changes Regulations for Crypto Companies Under MiCA появились сначала на CoinsPaid Media.
