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The Virtual Asset Service Provider (VASP) Better Regulation Bill, approved on December 23 by the Estonian government, does not prohibit the ownership and trading of cryptocurrencies. This is stated on the website of the Ministry of Finance.
According to the statement, the rules apply not to clients, but to VASPs. The bill has been submitted to parliament, where three readings are to be held.
“The regulation does not affect individuals holding virtual currency through a private wallet not provided by VASP. However, the accounts opened by Estonian VASPs cannot be anonymous, and suppliers cannot offer anonymous accounts or wallets, ”the press release said.
The Ministry of Finance stressed that the bill obliges VASP to identify its clients and includes recommendations FATF… According to the amendment, the authorities can refuse to issue a license if the organization does not conduct business in Estonia or does not have an obvious connection with the country.
“VASP will have to have a registered capital of at least € 125,000 or € 350,000, depending on the type of services offered, increased from the current minimum level of € 12,000,” added the Ministry of Finance.
In 2020, the Estonian authorities revoked the licenses of more than 1,000 digital asset companies. After that, the Ministry of Finance proposed to tighten the requirements for cryptocurrency service providers.
In September 2021, Treasury Secretary Keith Pentus-Rosimannus confirmed previously announced plans to change the VASP requirements in connection with the increased risks of money laundering and terrorist financing.
She also asked the Estonian Financial Intelligence Unit to consider temporarily suspending the issuance of new licenses pending the entry into force of the new regulation.
We will remind, in October, the head of the Bureau of Data on Money Laundering (RAB) Mathis Määker proposed to revoke all previously issued licenses for trading digital assets.
RAB representatives later denied plans to automatically revoke licenses from cryptocurrency companies in a comment to ForkLog.
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