500 Estonian crypto companies lost their licenses after money laundering scandal
Estonian authorities revoked hundreds of crypto-license licenses after the country was at the center of Europe’s largest money laundering scandal.
Last fall, the local prosecutor’s office accused Danske Bank A / S of participating in illegal money laundering operations totaling $ 220 billion. After the proceedings with banks, regulators turned their attention to crypto industry companies.
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Estonia was one of the first European countries to support digital currency technology, but due to increased fraud, it was forced to revoke more than 500 licenses of companies that had not started working within six months after receiving them.
According to the Financial Supervision Authority, about 35% of permits were revoked, as some firms used them as cover to carry out illegal activities in other countries. However, the cleaning has not yet been completed and, in the future, existing companies may also lose their licenses if they do not perform operations in Estonia or their management is located abroad.
While the Baltic states are tightening their oversight of the crypto industry, Switzerland is opening up new business opportunities in this area. Recently, the local financial regulator for the first time allowed the bank to conduct operations with digital assets.