Estonia Updates AML Law for Stricter Crypto Regulations

Dec 03, 2018 at 20:54

Estonia’s Ministry of Finance is planning to amend a bill that was recently passed in their area to adjust the impact of anti-money laundering (AML) regulations to financial institutions.

According to local news organization, Äripäev, changes will affect the way users interact with their digital assets as the new version of the AML and Terrorist Financing Prevention Act was already initiated this week.

Notably, the new rules will clearly define “virtual currency exchange service providers” and “virtual currency payment service providers.” In the past version, the regulation only included “alternative means of payment service provider.”

However, the government’s Financial Supervision Authority still reminded the risk of investing in cryptocurrencies and the potential for money laundering as it was the main reason behind the updating of the said law.

Earlier this year, Estonia announced its plans to create a state-owned digital asset called Estcoin which was then criticized by European Central Bank president, Mario Draghi.

Last April, Estonia is among the 22 member countries that signed a declaration to form a European Blockchain Partnership.

It joins Austria, Belgium, Bulgaria, Czech Republic, Finland, France, Germany, Ireland, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and the United Kingdom, among others.