A draconian new crypto regulation is set to take effect in Estonia later this year, potentially causing 90% of crypto companies to leave the country. But officials in charge of administering the regulation say it’s the way to go to regulate the industry and provide consumer protection, so there’s no need to worry about the situation.
The tech-friendly country, with a smaller population than Hawaii, is one of the smallest member states of the European Union, but has a strong presence in the crypto space.
Home to digital unicorns such as Wise, Bolt and Skype, Estonia last year claimed to have 55% of the world’s registered virtual asset providers, thanks to the country’s advanced regulatory regime and support for entrepreneurs who have never set foot in the country A system that provides electronic residency. But that could change, as lawmakers passed a new licensing regime in December.