The financial regulator of the Baltic state of Estonia hopes to revoke all cryptocurrency trading licenses in order to restart the entire regulatory system.
According to the local state-run news agency Eesti Ekspress, the head of the Estonian Financial Intelligence Unit (FIU), Matis Mäeker, urged the state to “zero oversight and restart the issuance of licenses”. Report on Wednesday.
Mäeker claimed that the public is not aware of the risks of the cryptocurrency industry. The official who was the head of the anti-money laundering department of the Financial Supervision and Resolution Bureau pointed out many related issues, including illegal cryptographic activities such as money laundering and terrorist financing, and the vulnerability of the industry to hacker attacks, stating:
“These risks are very, very high. We need to make a significant and rapid response.”
There are now about 400 companies in Estonia catch Mäeker claims that this is a virtual asset service provider (VASP) license, which is more than the total number of VASP licenses granted by the entire European Union. According to the official, these companies only used their licenses to “turn in very large sums, and Estonia got nothing.”
He said that in its current state, the Estonian crypto industry has neither created jobs for citizens, nor has it made “any major contribution” to the country’s tax authorities.
Mäeker proposes to introduce stricter capital requirements for the industry, including a possible requirement for crypto companies to have at least 350,000 euros (404,000 US dollars) in cash or securities. According to reports, the current equity requirement for industry start-ups is only 12,000 Euros (13,800 USD).
The official also suggested requiring crypto companies to build more secure IT systems and prohibit them from accepting any investment other than cash instead of options such as refinancing property, in order to increase the protection of investors.
As previously reported, Estonian financial intelligence agency began a large-scale crackdown In June 2020, on the crypto company, the Approximately 70% of VASP licenses In the country by December of last year. According to the Estonian Public Broadcasting Corporation, the regulator revoked a total of 1,808 VASP licenses in 2020.