Estonia Crypto Licenses

About Estonia Crypto Licenses

Estonia revoked cryptocurrency licenses from over 1,000 companies in 2020 after tightening Anti Money Laundering rules. Estonia had been one of the first countries to regulate cryptocurrencies, issuing licenses to over 1,400 crypto businesses by 2019. However, most license holders had no real operations in Estonia. The Danish Banking Association revealed that 200 billion in suspicious transactions had flowed through Estonian branches of Danske Bank. The scandal prompted Estonia to strengthen AML enforcement. Estonia increased capital requirements and mandated physical presence. By 2021, fewer than 100 crypto companies retained licenses. The Estonian cleanup demonstrated that light touch regulation could attract bad actors and that tighter oversight was necessary to prevent money laundering through cryptocurrency channels.