The global trend towards tighter crypto regulation has prompted a higher standard for crypto licenses, which has put many virtual currency providers at risk of losing their licenses or being forced to relocate.
CryptoWallet renews its Estonian license
CryptoWallet, an Estonian-based crypto startup, is one of the few companies that have managed to renew their virtual asset provider license once again.
According to Aleksander Smirmin, the COO of CryptoWallet, this renewal is proof of the company's ongoing commitment to providing a valuable service. Mr. Smirmin stressed that this announcement is a culmination of his team's hard work in last months:
This sought-after license, once again awarded by the FIU, is the culmination of years of hard work and dedication by the CryptoWallet team. We are fully compliant, have the required shared capital, and are launching products that will enhance our users’ lives
Later this year, CryptoWallet is launching a crypto card with 800 supported cryptocurrencies as part of its platform.
Tighter regulations for a safer crypto industry
Under the new regulations, crypto providers must have €250,000 in capital reserves, a significant jump from the previous requirement of €12,000. Additionally, platforms must have a local base in Estonia, employ stricter KYC and AML checks for their customers, and show a viable business strategy and product.
Previously, over 55% of virtual currency providers globally were licensed out of Estonia. However, the new regulations are expected to cause as many as 90% of platforms to lose their license or relocate.
The new regulations are a significant milestone for Estonia and should help prevent fraud and create a safer and more competitive industry overall. By requiring companies to have a local base and meet specific criteria, the Estonian government is demonstrating its commitment to a regulated crypto industry. It is also an indication of the growing recognition of the role that cryptocurrencies and blockchain technology play in the global economy.
Despite the challenges that the new regulations present, many industry experts believe that this marks the beginning of a new era for crypto. As the industry continues to evolve, it is crucial for businesses to adapt to these changes to ensure their survival in an increasingly regulated environment.