Estonian government to raise capital requirements for crypto licensees through a new law.
The government of Estonia has approved legislation tailored to improve oversight of its crypto sector which expanded rapidly due to favorable regulations and business climate. The new law, which is yet to be adopted, will introduce stricter requirements for service providers without preventing their clients from owning or exchanging cryptocurrencies.The executive power in Estonia has prepared and approved draft legislation designed “to more effectively regulate virtual asset service providers .
The Ministry of Finance pointed out that the legislation will not affect individuals who own virtual currency through a private wallet that is not provided by a VASP. It does not prohibit customers from holding and trading virtual assets and does not require them to share the private keys to their crypto wallets. At the same time, Estonian service providers will not be allowed to offer anonymous accounts or wallets.