Consulting Firm From Estonia Claims That Getting A Crypto License Is Harder After Regulation
Eesti, a consulting firm from Estonia, has recently complained about how it was getting increasingly harder to get a crypto license to work legally in Estonia after the regulation of the sector started, local media outlets reported.
At the beginning of this month, the Ministry of Finance of the country has decided to introduce several changes to the licensing process of the country. Some of these changes were not very well accepted by the local crypto industry, as we can see in this case.
Some of the changes are that now the processing time has gone up from 30 days to 90 and that now a company needs a branch to be incorporated in the country if they want to properly work there. Not only this, but the office addresses and the whole board of directors need to be in Estonia if they want to be acting legally in the country.
To make matters even worse, the fees for the emission of the license went from $345 EUR to $3,330 EUR, going up almost ten times in value.
Martin Helme, the finance minister of the country, has explained the changes. According to him, they have learned their lesson from the banking sector before “the hard way”, which is why they are not fine with being too lenient with the crypto market. The minister has affirmed that there are international risks in dealing with these assets, so cryptos should be properly regulated.
The announcement that crypto regulation would be tightened was not really new at all. The country had announced it last December when the minister affirmed that they would amend the legislation to make it harder for crypto companies to pass. In this way, it seems like the law was effective.
Estonia does not seem to be worried that it will scare companies this way. It makes sense. The country has a very stable economy and is a very desirable location to open up shop. This does not mean that they will not end up losing some companies which may have benefits for the country, though.