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Cryptocurrencies

Estonia changes its regulatory position towards cryptocurrency

Wednesday 5 December 2018 | 12:52 PM CET

Estonia has started to tweak their regulatory attitude towards digital currencies to prevent money laundering and terrorism funding.

The Financial Supervision Authority (FSA) of Estonia is set to focus on companies that are offering crypto-based services, because if there is going to be a regulatory overhaul, the cryptocurrency exchanges are likely to be vulnerable. The reason behind this is the fact that the regulatory norms are requiring trading platforms to work in compliance with anti-money laundering laws (AML), and to perform KYC (Know Your Customer) diligence checks. As such, no markets are going to remain unaffected.

The Financial Supervision Authority is mostly concerned with the point of sale where the fiat is being exchanged for the cryptocurrency. The regulatory authority stated that they will scrutinize token sales of every kind, and that they will monitor the records on a case-by-case basis. Despite the usage of technology, some of the digital assets can be classified as securities, but all of these assets fall under the regional security regulations.

Moreover, the local regulators have examined several problems that have come up due to a few of the crypto transaction, therefore, the aim is to prevent unsupervised cryptocurrency trading. Theoretically, cryptocurrencies can be used to hide assets and move them.

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