Tighter Regulation Weeds Out CryptoWallet’s Competition in Estonia 2023

Over the course of the last few years, Estonia’s Financial Investigation Unit (FIU) has been tightening the regulation of the crypto market. Fears of financial risk, mismanagement, and the potential for financial crime have spurred the move towards a higher bar for digital license renewal, which many companies, some saying up to 90%, may fail to meet.

In 2021, 55% of all virtual currency providers worldwide were licensed out of Estonia, but that looks set to change, with an estimated 90% of the crypto community potentially facing relocation.

 However, some companies are still making the cut. Aleksander Smirnin, COO of Estonian-based crypto startup CryptoWallet, is proud of the company's success in renewing the license, stating, “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 800 supported cryptocurrencies later on in the year.

Crypto Regulations in 2023

New regulations require some companies licensed in Estonia to a minimum of €250,000 of capital reserves, a jump from the previous requirement of €12,000. Companies will also have to employ stricter KYC and anti-money laundering checks, increased personnel requirements, demonstrate a viable product and business plan and have a local presence in Estonia.

This marks a new era for crypto, as many companies in the past registered in Estonia despite having no staff or offices in the crypto-friendly European nation. This new bar for entry has proven disruptive for some crypto start-ups, but the selective nature of the regulations should help prevent fraud and create a safer and more competitive industry overall.