Estonia’s Government Has Issued Over 900 Crypto-related Licenses in Less Than One Year

Estonia’s regulators have granted over 500 licenses to crypto firms who’ve launched digital asset exchanges in the Baltic nation.
The nation’s authorities have also authorized more than 400 crypto wallet service providers.

Estonia, one of the world’s most “digitally advanced” societies, has reportedly issued over 900 licenses to cryptocurrency and blockchain-related firms in the past year.

500 Crypto Exchange Licenses, 400 Wallet Service Licenses Issued
Government officials in the Baltic nation have adopted a progressive approach to regulating cryptoassets, however, local companies have complained that Estonia’s financial institutions are still reluctant to provide standard banking services to crypto-related businesses. Notably, Estonia was among the first countries in Europe to develop regulations and legalize crypto-related transactions.

At present, there are about 500 licenses Estonia’s authorities have issued to firms operating cryptocurrency exchanges. Additionally, the country’s financial regulators have authorized over 400 crypto wallet services to offer their products to Estonian residents.

Nikolay Demchuk, an associate at local law firm Njord, pointed out that the nation’s Register of Economic Activities suggests that obtaining regulatory approval for providing cryptocurrency-related services in Estonia is an easy-to-follow and simple process.

Two Weeks To Be Licensed
Moreover, the Estonian Financial Intelligence Unit (FIU), the main organization responsible for issuing financial services-related licenses, requires up to 30 days to review applications for businesses. In most cases, however, the FIU takes only about two weeks to grant approval to crypto firms looking to establish their headquarters in Estonia.

While crypto-related licenses are issued fairly quickly, the nation’s regulators do require that businesses officially begin conducting operations within a few months after being approved for offering such services. Failure to start business activity may result in the license being revoked.

The requirements outlined by Estonia’s authorities include complying with the standard know-your-customer (KYC) and anti-money laundering (AML) checks.

Companies Licensed In Estonia Are Legally Operating In The EU
Companies licensed by Estonia’s government have actually been given regulatory approval to operate in the wider European Union jurisdiction – as Estonia is currently a member of the EU.

As mentioned, cryptocurrency-related firms have found it challenging to open bank accounts in Estonia, despite the country’s relatively progressive laws. Commenting on the issue, Demchuk said:

“Opening a bank account is the biggest problem facing crypto companies. Estonian banks are not yet ready to serve clients operating with cryptocurrency.” Nikolay Demchuk

Potential Risks Associated With Cryptocurrency-Related Businesses
Presumably, Estonian financial institutions may be concerned about the potential risks associated with crypto and blockchain-related businesses.

As CryptoGlobe reported, UK’s financial regulator, the Financial Conduct Authority (FCA), recently warned that GMT Crypto (http://www.gmt-crypto.com) has presented fake FCA-authorization information on its website.

According to the FCA, GMT Crypto is misleading investors by listing (and associating itself with) the official company address and reference number of established UK-based financial firm, GMT Communications Partners LLP.

Source
Author: Omar Faridi
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Cardano (ADA) Following XRP’s Footsteps On This Week’s Price Reversal

Being one of the only two gaining in double digits is making ADA stand out among top contenders during these times of recovery as it is changing hands at $0.0715 with 12.16% increase in the last 24-hours.

With Ripple’s XRP leading at 17.79% gain for the last day it was just a matter of time before the other top coins by market capitalization would follow positively.

The pair ADA/USD finally made it above the major $0.07200 mark which tanked the price for a week now since the major decline on Sep 12th. Correction could be on its way but looking throughout the market it is very much possible that $0.07200 could hold ground as a strong support.

In an interview with CNBC, Francisco Gonzalez Rodriguez, Executive Chairman of BBVA, explained that cryptos are perfect for the economic system, but because of their characteristics they are also especially attractive for criminals. Parallel with that, Mr. Rodriguez commented very positively on the technology behind the coins calling it also perfect and could turn very useful.

“Cryptocurrencies are perfect, but are used for bad purposes today, so [one has to be] careful. Blockchain and distributed ledger technologies are also perfect, they are big, big tools. But the cryptocurrencies must be understood, [especially] the corner where the malpractices are going.”

Co-founder of the blockchain startup Origin Protocol – Josh Fraser, highlighted that despite of an unwary and volatile market, prices could recover over the next few months. In an email to the financial-focused publication MarketWatch, Fraser wrote:
“Prices will slowly recover some of the losses they experienced in [the first of half of] 2018.”

Explaining why this is the case, Fraser explained that as development efforts shift towards blockchain technologies, and subsequently, crypto assets, the “key pain points” of usability and pricing will start to subside.

For those interested to step-in and collect some ADA in their digital wallet, just recently the ABRA app has announced ADA, TRX and BAT listings on its platform.


Source
Author: MaxPositives
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