Estonia Releases Amended Legislation to Regulate VASPs

Updated:

The government of Estonia has reportedly moved to approve draft legislation curated “to more effectively regulate virtual asset service providers (VASPs).” According to an explanation by the Finance Ministry of Estonia on Sunday, the primary goal of this legislation is to dampen the risk of financial crime perpetrated through crypto entities registered and operational in the Baltic nation.

The revised draft law mandates VASPs to identify their customers in a manner that their identities are attached to all their transactions. This draft law comes on the heels of a recent ban on open anonymous virtual accounts introduced in 2020 after the nation’s crypto-friendly stance attracted several entities seeking license approval.

The finance ministry clarified that the legislation would not affect residents who own digital assets through a private wallet not provided by a VASP. The ministry added that it does not require crypto holders to divulge their private keys. However, Estonia-based crypto service providers cannot offer anonymous accounts or wallets.

Furthermore, the ministry emphasized that the proposed measures are the same as the rules applied to the payments and banking sector. The new draft (amendment) alters the recommendations forwarded by the Financial Action Task Force on Money Laundering (FATF) to the Estonian law. These recommendations define some digital asset services that do not exist under the Baltic nation’s current legislation.

Estonia to Disallow Resale of Licenses

Meanwhile, a critical aspect of the new law requires companies to link their operations with Estonia to obtain a license. The recent boom in applications came following a phrase that allowed applicants to sell their licenses to third parties. The supervision of this rule has proven difficult prompting authorities to make a U-turn and that under the new rule, the nation’s Financial Intelligence Unit (FIU) holds the power to decline such applications.

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.