A new Estonia crypto bill aims to regulate crypto service providers in the country and bring it under the Financial Supervision Authority’s purview.
News reports in Estonia reported that the country’s finance minister had passed a bill to regulate crypto service providers. Mart Võrklaev, the minister, sent the Estonia crypto bill to the government last week. Meanwhile, it would also have to receive parliamentary approvals to become a law. The parliament, Riigikogu, will vote on the Estonia crypto bill once it receives the green signal from the government.
Minister Mart Võrklaev said, “With this legislation we would be establishing clear requirements for cryptocurrency service providers, to ensure fair competition and to help protect consumers and investors alike, as well as to combat fraudulent activity.”
The new bill creates a new aspect of regulating crypto service providers. It will bring these providers under the Financial Supervision Authority’s (FSA) supervision. The current rules mandate the providers to follow anti-money laundering rules and register with the Financial Intelligence Unit (FIU).
The crypto regulations under the bill will come into effect in 2026 if it becomes law. The firms would have to obtain a new license from the FSA by then. An official from the FIU claimed that actual crypto regulation would only take effect after the bill. Although all the Estonia crypto firms will abide by anti-money laundering rules, there is no adequate financial supervision.
He also stated that the FSA’s supervision will effectively prevent financial crimes. Fines of up to millions of euros will be slapped on those who do not follow the new rules.
Europe, which already has the MiCA regulation in place for the sector, has become a crypto hub. Meanwhile, countries like Estonia have attempted to create these separate laws for further regulation.
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