Key facts:
A company would have to pay up to 400,000 as a fine if it does not comply with the parameters of the new law.
The law is scheduled to take effect on February 1, 2022.
Up to 1,200 euros could be the fine that users would have to pay for downloading a self-custodial Bitcoin (BTC) wallet in Estonia, according to an amendment made to the law against money laundering and terrorist financing. It is based on several recommendations of the Financial Action Task Force (FATF) for trading cryptocurrencies.
On September 21, the Estonian Ministry of Finance introduced a bill before Parliament that refers to an amendment or modification of the law in force since 2017. In it, they touch on the issue of virtual assets and to regulate them they relied on the international group’s guide to regulating Bitcoin. Although the project is in the consultation phase, it is scheduled to come into effect on February 1, 2022.
According to the legislation, all crimes related to non-compliance with the law are punished and punished. In this case, a user can be fined 300 tax units. In that country, each tax unit is equivalent to 4 euros.
The story does not change for companies. Exchanges, digital wallets and other digital asset service providers (PSAVs) are also under threat. If they do not comply, they will have to carry fines of up to 400,000 euros.
The amendment is in the drafts to be discussed in the Estonian Parliament / Source: AR Minute.
Recent amendments
The verification portal Sumsub published this week several of the amendments that the Estonian Ministry of Justice made to the document, before its discussion in Parliament and its possible approval.
Under the law, the definition of digital asset service providers (PSAV) includes cryptocurrency exchanges and wallets, in addition to decentralized platforms, ICOs and other services that operate in the country.
These services have been regulated since last year, as well as financial institutions, so…
