Estonian regulators to crack down on cryptocurrency market
|- The industry has poor oversight at this stage.
- The regulator wants to bring its rules in compliance with FATF requirements.
The Estonian authorities intend to further tighten the regulation of the cryptocurrency industry. Thus, the head of the Financial Inspection of this Baltic country, Kilvar Kessler, said that his office would soon start bringing the cryptocurrency industry to discipline.
In an interview with a local radio station, Kessler noted that, currently, companies engaged in cryptocurrency-related business in Estonia were registered with the Money Laundering Bureau. However, no authority performed adequate oversight of the industry.
He also referred to the recent statements of the Financial Action Task Force on Money Laundering (FATF). The experts of the Task Force noted cryptocurrency could be used for money laundering and illegal operations.
It should be noted that the FATF recently introduced new rules for the cryptocurrency market. They obliged cryptocurrency exchanges and other virtual assets service providers VASPs) to comply with AML and CFT procedures (countering the financing of terrorism), applicable to the traditional financial institutions.
It is worth noting that in May the Estonian government tightened control over the licensing to cryptocurrency companies in the country. According to the head of the Ministry of Finance, the measures were also aimed at combating money laundering.
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