In the beginning of this month, the Estonian government’s Ministry of Finance has announced some changes to the licensing process of the country. Several changes were not well accepted by the local crypto industry, as we can view in this case.
Some of the changes in the regulation include a numbered formed duty, where the processing time has increased from 30 to 90 days and the firm has to establish a branch to be incorporated in the country if they want to work seamlessly.
Moreover, the registered office address and the board of directors required to be situated in Estonia if they want to establish their business legally. Also, the state fee for the emission for the license has been raised from €345 ($386) to €3,330 ($3,729), which is ten times from its previous value.
Martin Helme, who is the country's ministry of finance for change has clarified the reasons for the change:
“We have learned our lesson from the banking sector the hard way, and we must now deal with new international risks, with cryptocurrencies among the most urgent of these.”
Estonia affirms that now it will be difficult to obtain a crypto license with the new regulations. As of now, license holders will effectively have time till the end of the year to meet with the latest requirements or else their license will be withdrawn by the regulator.
The latest announcement that Crypto regulation will be hard wasn't new at all. Earlier in December 2018, the ministry has mentioned that it would modify the legislation to make it harder for Crypto firms to pass the bill.
Estonia doesn't seem to be worried as it will shock the firms in this way. The country has a low economy and it is a suitable location for anyone to start its business. This doesn't mean that it will lose some of the precious companies which provide benefit to the country.