CryptoWallet receives new crypto license in Estonia

2023-03-21 10:40:46 ET

CryptoWallet, a crypto startup regulated in Estonia, has successfully renewed its crypto license amid renewed pressure for tighter regulations for the digital asset industry from Estonia’s regulator.

The latest cryptocurrency news the platform shared with Invezz on Tuesday notes that CryptoWallet has specifically renewed its Virtual Assets Provider license. The startup says approval under Estonia’s new legal framework indicates the platform’s commitment to providing valuable services to the global crypto ecosystem.

Estonia is pushing for greater crypto regulation

CryptoWallet’s milestone comes as Estonia’s Financial Investigation Unit (FIU) seeks to align itself with a global push for greater crypto regulation. The FIU recently introduced new rules for cryptocurrency platforms as authorities sought to legislate concerns regarding issues such as fraud, mismanagement and financial risk surrounding digital asset platforms.

Issuing licenses is part of the goal to address these concerns. In particular, the new legislation tightens the requirements crypto exchanges must meet before receiving licenses. Over 55% of virtual currency licensed companies were licensed in Estonia under the old legislation. However, following the tightening of regulatory requirements, almost 90% of previously licensed platforms may lose their authorizations and be forced to relocate.

For example, any cryptocurrency provider seeking new licensing must now have €250,000 in capital reserves, up from just €12,000 under the previous law. Companies must also have a local office in Estonia and ensure strict compliance with KYC and AML checks.

CryptoWallet is among the very first to be licensed under the overhauled controls. Aleksander Smirmin, COO of CryptoWallet, says that the approval gives the team the go-ahead to launch new products. He noted:

“This coveted license, once again awarded by the FIU, is the culmination of years of hard work and dedication from the CryptoWallet team. We are fully compliant, have the necessary shared capital, and are launching products that will improve users’ lives.”

According to details shared with Invezz, the crypto platform is preparing to unveil a crypto card before the end of the year. The crypto-linked card will support 800 cryptocurrencies.

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