Estonia Issues First License to Crypto Service Provider Under New Regulation – Regulation Bitcoin News

Estonia’s Financial Intelligence Unit has issued its first license to a crypto service provider under the country’s new regulatory framework that entered into force in March. “Striga Technology OÜ is the first entrepreneur, who is authorized for the first time to provide a virtual currency service since the amendments of the Money Laundering and Terrorist Financing Prevention Act,” the regulator detailed.

New Crypto Regulatory Framework: First license issued

The Estonian Financial Intelligence Unit (FIU) announced this week that it licensed Striga Technology OÜ to provide crypto services on Sept. 20. Financial Intelligence Unit (FIU) is an autonomous government agency that falls under the Ministry of Finance. Its mission is to stop money laundering and terrorist funding in Estonia.

According to the Estonian FIU, this newly licensed company is a fully owned subsidiary of Lastbit Inc. (a U.S.-based technology company).

Striga Technology OÜ is the first entrepreneur, who is authorized for the first time to provide a virtual currency service since the amendments of the Money Laundering and Terrorist Financing Prevention Act entered into force on 15 March 2022.

Estonian FIU stated that crypto service providers have received 381 licenses since January under the old, more strict regulatory framework. The regulator reported that 135 companies applied for licenses under the new regulations in June. In the meantime, 18 licenses were revoked and 94 of the crypto service providers have resigned.

According to the financial regulator, there are 177 licenses valid for virtual asset services providers that were previously issued by FIU.

Matis Mäeker, the head of the Estonian Financial Intelligence Unit, commented:

Virtual asset service providers are more than three quarters likely to seek new jurisdictions with lower supervision and laws that do not meet international standards.

Keit Pentus – Rosimannus, Estonia’s Finance Minister met Janet Yellen, U.S. Treasury Secretary to talk about how they could exchange information and identify the best practices for crypto regulation.

How do you feel about Estonian regulator issuing licences in accordance with the new regulatory framework. Comment below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.