Despite Estonia’s Tougher Regulation, CryptoWallet Renews Virtual Asset License

The post Despite Estonia’s Tougher Regulation, CryptoWallet Renews Virtual Asset License appeared first on Coinpedia Fintech News

In the face of stricter crypto regulation in Estonia, CryptoWallet has renewed its license, keen to take advantage of these new favourable conditions.

“We are fully compliant, have the required shared capital, and are launching products that will enhance our users’ lives” according to Aleksander Smirnin, CryptoWallet’s COO. The startup is releasing a crypto card with over 800 supported coins later in 2023.

The crypto market in Estonia is set for some big changes in 2023, offering big opportunities for some and challenges for others.

Thanks to a variety of new legislation brought about by the country’s Financial Investigation Unit (FIU), Estonia has raised the standard for crypto-related business in the country.

For a long time, Estonia was, and still is, considered to be extremely crypto-friendly. What these new regulations bring about is higher standards for crypto platforms, requiring better KYC, personnel management, and a clear viability for the company’s product/business model.

These changes, which are designed to impede criminal financial activity and combat risk in the crypto sector, are a welcome breath of fresh air for companies like CryptoWallet, whose licenses have been fully renewed by Estonian authorities. However, this has not been the case for everyone.

Headwinds for Some, Tailwinds for Others

It has been that a staggering 90% of crypto companies may fail to meet these new standards.

This initially sparked concern from some within the crypto space, but others have quickly pointed out that many of the changes are long overdue and will positively impact the sector overall.

In the past, companies were not required to have physical local premises or even staff to do crypto business within the country. In addition, it was only required that companies have a meager €12,000 in capital reserves (compared to the new requirement of €250,000), which has long sparked concern from Estonian authorities.

With these new regulations, all of this has changed. Meaning that the ecosystem may have been radically re-orientated towards healthier, more viable businesses.

Companies like CryptoWallet that find themselves having received their virtual asset license have, in effect, had the competition weeded out for them, giving them a tailwind that they will be quick to capitalize on.

With such big changes in the market, all eyes are on the Estonian crypto scene and the new opportunities emerging there.