One of the few businesses, CryptoWallet, was able to renew its Estonian virtual asset provider license despite stricter regulatory requirements.
The Financial Intelligence Unit of Estonia has approved CryptoWallet, according to a press release shared on March 17. (FIU). The renewal occurs in spite of stringent regulations that were put in place last year to maintain compliance and openness in the cryptocurrency industry.
Estonian cryptocurrency laws
It has become much more difficult to obtain the Estonian license to offer a virtual currency service, which was given to 55% of all virtual asset providers in 2021.
According to data gathered in 2022 by CoinDesk, up to 90% of businesses in Estonia run the risk of losing their license or being required to relocate.
The new regulations are intended to eliminate businesses with weak management in order to deter financial crime and reduce risk. Authorities have increased the minimum amount of capital reserves required of businesses providing services like CryptoWallet from €12,000 to a minimum of €250,000.
Strict KYC/AML inspections, personal standards for the management board and staff, and local presence in Estonia are additional prerequisites for the license. Aleksander Smirnin, COO of CryptoWallet, encapsulated the success of the company as follows:
“This sought-after license, once again awarded by the FIU, is the culmination of years of hard work and dedication by the CryptoWallet team. We are fully compliant, have the required shared capital, and are launching products that will enhance our users’ lives. No other crypto card provider offers as many supported cryptos as CryptoWallet and we look forward to growing our ecosystem.”
After the renewal, the business can legitimately assist in the storage, acquisition, and sale of digital assets. Customers can use a crypto card and SEPA compatibility to purchase, sell, and spend cryptocurrency assets on its platform.
Moreover, CryptoWallet has said that later this year it will introduce a crypto card that would support over 800 coins. Through cashback, staking, referral, and partnership programs, users can earn native SPEND tokens.
A custodial wallet that supports more than 100 cryptocurrencies is already operational. Moreover, CryptoWallet allows businesses to buy and trade cryptocurrency by listing tokens on its platforms.