Estonia on a road to possibly revoke most crypto licenses issued in the country - page 2.

adzino

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They probably have their reason to do so. I haven't read the article, but I guess its because they have a weak regulatory framework and its becoming hard for the government to keep track of everything?

Quote from: zaesvlas on October 13, 2021, 07:40:50 AM

Apparently, Estonia just wants cryptocurrency to be outlawed. As for me, this is a rather interesting event.

Revoking or reviewing licensing doesn't mean that they want to outlaw crypto currencies.

Quote from: davis196 on October 13, 2021, 06:39:20 AM

-snip-
2.It's no big deal that many companies might lose their license in Estonia.
They will have to move to another country,so I don't think that this would be a "big blow" for the cryptocurrency industry.
3.Estonia is a small country with a population of less than 2 million people.The Estonian market is really small,and most crypto companies currently operating in Estonia are focused on the global market.This means that Estonia isn't important for the crypto industry,despite being one of the first crypto friendly countries in the world.

I thought bitcoin and other crypto currencies are for everyone. Just because they have a small population you can't go around saying that Estonia isn't important for crypto industries.

SFR10

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I just finished reading two other articles ^{[#1 and #2]} that listed all of the reasons behind that move and from where I'm standing, it does look like they just want a piece of the pie ^{[main objective]} while mentioning a few other stuff to make it less obvious!

Quote from: Konfusioon on October 13, 2021, 02:49:34 AM

For context Estonia houses about 400 companies that own crypto license.

Quote from: Yaunfitda on October 13, 2021, 03:57:23 AM

Maybe it grew too big for the government to really monitor everything that's why they wanted to review it.

Something like that... They've given more licenses in comparison to the whole of Europe:

Quote from: https://news.err.ee/1608367998/anti-money-laundering-chief-cryptocurrency-licenses-should-be-revoked
At present, the RAB estimates there are around 400 companies in Estonia, population 1.3 million, who hold a cryptocurrency provider's license, a figure higher than the rest of the EU combined.

Singapore, with a population over four times that of Estonia and one of the world's key financial centers, has issued only one such license to date, while the U.K., population nearly 68 million and also a key financial center via London, has issued 12 and Malta, well-known as a center for online gambling, both physically on-site and in the issuing of licenses to companies based elsewhere, has issued less than 20, BNS reports.

Lucius

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Quote from: Konfusioon on October 13, 2021, 06:21:13 AM

No doubt it will not have a huge impact. The reason I posted this was that this plan might be of interest to some non-Estonian speaking persons who operate their crypto business in there. Just that the eventual scrutiny from government would not be a total surprise

Every serious company always has a backup plan, and since we are only talking about the headquarters of the companies here, moving to another country is not a problem for most of them. Also, the Estonian authorities are certainly communicating with all these companies and they are aware of what is expected of them - and I am sure it will give them enough time to adjust.

Yet this may be an opportunity for some companies to consider moving to some other, for crypto much cheaper and warmer regions, like El Salvador.

@noorman0, I wasn’t sure, but it was somewhere in my subconscious that something similar had already happened in that country, thanks for the reminder Wink

zaesvlas

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Apparently, Estonia just wants cryptocurrency to be outlawed. As for me, this is a rather interesting event.

noorman0

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In 2020, Estonia's Financial Intelligence Unit also conducted a massive license revocation operation due to the burden of monitoring compliance.

Apart from Singapore, Estonia is often a top destination for crypto companies to obtain licenses even though they mainly target services overseas. This is shown by the many counseling service sites how to get a license in that country. As far as I know the country's favorite companies are crypto exchanges and casinos.

davis196

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Quote from: Yaunfitda on October 13, 2021, 03:57:23 AM

They are one of the most crypto friendly countries in my opinion. If I'm not mistaken as early as 2017, some crypto projects wanted to move to Estonia because of that reason.

Maybe it grew too big for the government to really monitor everything that's why they wanted to review it. Hopefully though, it doesn't mean the total shutdown of exchanges and financial services in the country, otherwise if could be a big blow to crypto market in general.

1."Crypto friendly" countries can become not-so-crypto friendly pretty fast.Sad but true.
2.It's no big deal that many companies might lose their license in Estonia.
They will have to move to another country,so I don't think that this would be a "big blow" for the cryptocurrency industry.
3.Estonia is a small country with a population of less than 2 million people.The Estonian market is really small,and most crypto companies currently operating in Estonia are focused on the global market.This means that Estonia isn't important for the crypto industry,despite being one of the first crypto friendly countries in the world.

KennyR

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Estonia is one of the country that made its early entry into cryptocurrency. Importantly it is the country that prioritised blockchain adoption. The governments management infrastructure too is incorporated with blockchain technology.

Estonia is crypto friendly country because it gave easy access for cryptocurrency companies to register and receive license in a very short time period. Now the same might be getting harder as the country's adopting cryptocurrency is growing with time. Maybe Estonia might've not achieved what is being planned which seems to be the reason for the review over the issued licenses. This might create some deviation in the market.

Konfusioon

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Quote from: Lucius on October 13, 2021, 05:10:37 AM

Quote from: Yaunfitda on October 13, 2021, 03:57:23 AM

Hopefully though, it doesn't mean the total shutdown of exchanges and financial services in the country, otherwise if could be a big blow to crypto market in general.

Whatever happens will not significantly affect Bitcoin, as some companies may be denied a license, but that only means that it will move to another country - if Bitcoin has survived China, there is no doubt that it will survive Estonia as well.

No doubt it will not have a huge impact. The reason I posted this was that this plan might be of interest to some non-Estonian speaking persons who operate their crypto business in there. Just that the eventual scrutiny from government would not be a total surprise

Lucius

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Quote from: Yaunfitda on October 13, 2021, 03:57:23 AM

Hopefully though, it doesn't mean the total shutdown of exchanges and financial services in the country, otherwise if could be a big blow to crypto market in general.

I don't know more than what the OP wrote, but is this anything different from what South Korea did recently, which Japan has done on several occasions? Being friendly about something must never mean that everyone should be allowed to do what they want and in whatever way they want. The reason why Estonia is considering revising all licenses is certainly that they have found that there are a lot of irregularities in the work of all these companies - and I would not be surprised if there is no pressure from abroad on their regulatory agencies.

Whatever happens will not significantly affect Bitcoin, as some companies may be denied a license, but that only means that it will move to another country - if Bitcoin has survived China, there is no doubt that it will survive Estonia as well.

Yaunfitda

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They are one of the most crypto friendly countries in my opinion. If I'm not mistaken as early as 2017, some crypto projects wanted to move to Estonia because of that reason.

Maybe it grew too big for the government to really monitor everything that's why they wanted to review it. Hopefully though, it doesn't mean the total shutdown of exchanges and financial services in the country, otherwise if could be a big blow to crypto market in general.

Konfusioon

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This might be a bit niche as a topic, but it might be of interest to some. In short the head of money laundering bureau in Estonia has gone to media with the suggestion to either revoke or review all crypto licenses issued in the country. For context Estonia houses about 400 companies that own crypto license.

As of right now it is merely an idea but one which is held by a head of a powerful organization in the country. It is also published during a time when Estonian government is trying to pass a law which makes it harder for companies to recieve a crypto license.

For anyone interested here is the link to the article: https://ekspress.delfi.ee/artikkel/94821441/pauk-kruptoarile-rahapesu-andmeburoo-juht-soovib-tuhistada-koik-tegevusload-sest-eestit-varitseb-oht. The arcticle is in Estonian and behind a paywall but for anyone interested I can translate parts of it if needed.

Topic: Estonia on a road to possibly revoke most crypto licenses issued in the country - page 2. (Read 279 times)