While many companies licensed in Estonia are facing relocation due to stricter regulations, CryptoWallet, a crypto card provider and buy/sell platform, has become one of the first companies to renew its license.
Regulations are tightening worldwide, and particularly in Estonia which once licensed 55% of all virtual asset providers. Now, up to 90% of those companies may no longer be eligible for a license. New requirements include more stringent KYC/AML checks, higher capital reserves, a viable business model and product, and a local presence in Estonia.
CryptoWallet COO Aleksander Smirnin commented on the company’s success.
“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.”
CryptoWallet is launching a crypto card with over 800 supported cryptocurrencies later this year, the most supported coins of any competitor.
Why Are Regulators Cracking Down?
The new regulations are in place to protect the industry and its participants from fraud and bad actors. Crypto is an industry heavily affected by exit scams and hacks, making such regulations vital to a healthy and thriving market.
The Estonian Financial Intelligence Unit, FIU, has reacted to these issues with stricter rules, making the license renewal in CryptoWallet and other successful applicants a real vote of confidence from the regulator. A license now demonstrates that a company has been thoroughly checked and is being monitored properly, rather than simply registering from abroad. While fewer companies will now be licensed, those that do can be expected to outperform the rest.
