The new regulation states that only companies who operate in Estonia or are connected to Estonia can apply for a license to operate as a VASP
Estonia residents will not be banned from trading or owning cryptocurrency, according to the Ministry of Finance.
The virtual assets’ draft regulation will not ban customers from owning or trading in virtual currencies. However, the proposed requirements for virtual asset service providers (VASPs) will apply to decentralized wallet creators which includes hefty capital stipulations.
This statement was issued after concerns that the proposed bill would ban non-custodial wallets and decentralized finance (DeFi). Non-custodial wallets provide users with complete ownership of their private keys and crypto.
The bill, however, has been set aside by the Ministry of Finance in Estonia to cap anti-money laundering needs for VASPs, more so minimizing the creation of anonymous accounts. If accepted, Estonia’s VASPs will be mandated to undertake customer identification when offering wallets or accounts.
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