Last year almost 80% of crypto companies lost their license in Estonia

Last year almost 80% of crypto companies lost their license in Estonia. As of 1 May this year, only 100 other activity licenses were valid in Estonia. 389 licenses have expired by a decision of the Financial Intelligence Unit (RAB) or at the request of entrepreneurs due to an amendment of the Money Laundering and Terrorist Financing Prevention Act last year. RAB was in charge of implementing this law that, also, requires companies to keep hefty capital reserves and genuine links to Estonia.

Companies withdrew nearly 200 operating licenses. In addition, the RAB revoked almost the same number of authorizations due to non-compliance. 

According to the head of the RAB, the reaction of the legislator to the amendment of the law and the activities of supervision both before and after the amendment of legislation have been appropriate. Thus withdrawing licenses from some of the crypto companies was justified, taking into account the documents submitted by them, the manner of operation, and the risks involved.