Estonia is currently setting cryptocurrency regulation plans Estonia to regulate the country’s cryptocurrency industry. Reports from the European nation claim it may tighten regulation of its token and digital currency market due to concerns over money laundering and terrorism financing.

Estonia’s Financial Supervision Authority (FSA) is taking a closer look at firms providing cryptocurrency-related services.

According to Aripaev, a local financial news outlet, if a regulatory tighten-up were to take place now, cryptocurrency exchanges would likely feel the brunt of it.

To watchers of the crypto industry, this news from Estonia is not surprising in the least. It has become the norm by most countries to demand that exchange platforms perform Know Your Customer (KYC) due diligence in addition to complying with anti-money laundering (AML) laws.

The FSA in Estonia, just like other regulators, is chiefly concerned with “the moment digital currency is bought or sold for fiat currency.” No country or region has been able to directly regulate or stop a blockchain, however.

Estonia’s ICO Market and Regulation Update

In recent times, Estonia has become one of the most sought-after markets for initial coin offerings (ICOs) and token sales. A major reason is the ease of registering a company in the country. This has made Estonia the preferred destination for many business startups. When cryptocurrency was booming, Ernst & Young listed Estonia among the “top 15 countries for raising funds through an ICO.”

Despite these advantages, the country has “never been a free-for-all country when it comes to token crowd sales.” The Financial Supervision Authority (FSA) has confirmed this. It said all token sales will be thoroughly scrutinized on a case-by-case basis. This means some virtual assets may be classified as securities. This applies regardless of the technology used. As a result, these assets fall under the country’s security regulations.

Furthermore, recent developments suggest Estonia may have abandoned its plan for a national digital currency called Estcoin. Currently, Estonia has only nine active nodes dedicated to Bitcoin. This number shows the local cryptocurrency community’s level of commitment.

In conclusion

Rumors of the cryptocurrency industry being used for money-laundering schemes and terrorism financing have prompted the government of Estonia to set clear cryptocurrency regulation plans Estonia. The financial authority plans to closely examine companies offering cryptocurrency-related services.

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