Estonia Continues to Select cryptocurrency licenses
In July 2020, we already wrote about the fact that the Estonian regulator has been revoking licenses from cryptocurrency companies for several months. Previously, the main reasons for revoking cryptocurrency licenses were an increase in state fees and authorized capital, the need for a physical presence in the country and the presence of an AML officer, as well as the lack of real activity of licensed companies.
This month, the revocation of cryptocurrency licenses in Estonia has not stopped, and the list of reasons for revoking licenses has been updated with new formulations. Actually, for the same reasons, the Estonian regulator refuses to issue new licenses. Now the Estonian regulator believes that the cryptocurrency company:
1) Cannot rent an office jointly with other companies at the same address.
If your company uses co-working or rents an office together with other companies, then your cryptocurrency licenses are at risk.
2) A board member of your cryptocurrency company cannot be a board member of other companies in Estonia at the same time.
3) Both members of the Management Board must be in Estonia. If the second board member does not live in Estonia, you will probably now be denied a cryptocurrency license (and, of course, will not be issued a new one).
As can be seen from the new requirements of the Estonian regulator, the tightening of money laundering control requirements in the Baltic States is taking radical forms and concerns not only financial companies.
In the near future, we can expect the start of interesting litigation of cryptocurrency companies affected by the new requirements with the regulatory authorities of Estonia.
Antwort specialists are closely monitoring the ongoing changes in the licensing of cryptocurrencies, and will be happy to help in solving any legal issues.