Estonia: Proposals to regulate virtual currency service providers

A draft bill to reduce the risks arising from virtual currencies and to regulate virtual currency service providers.

Proposals to regulate virtual currency service providers

Estonia’s Ministry of Finance in September 2021 published a draft bill that would amend the law governing money laundering and terrorist financing activities in an effort to reduce the risks arising from virtual currencies and to regulate virtual currency service providers and their activities.

The draft law is currently in the consultation phase, but is scheduled to be effective 1 January 2022.

The proposals would require:

  • Holders of a virtual currency service provider activity license to be in compliance with certain new requirements and to submit relevant material to the Estonian Financial Intelligence Unit by 18 March 2022 or have their licenses revoked
  • Those offering new virtual currency services to obtain a virtual currency service provider license

Read an October 2021 report prepared by the KPMG member firm in Estonia 

 

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