CryptoWallet, a crypto startup regulated in Estonia, has successfully renewed its crypto license amid a new push for tighter regulations for the digital assets industry by Estonia’s regulator.
The latest cryptocurrency news the platform shared with Invezz on Tuesday notes that CryptoWallet has specifically renewed its Virtual Assets Provider License. The startup says approval under Estonia’s new legislation framework indicates the commitment the platform has towards offering valuable services to the global crypto ecosystem.
Estonia pushes for greater crypto regulation
CryptoWallet’s milestone comes as Estonia’s Financial Investigation Unit (FIU) seeks to align with a global push for greater crypto regulation.
As such, the FIU recently introduced new rules for cryptocurrency platforms as authorities sought to legislate on concerns regarding issues such as fraud, poor management, and financial risk surrounding digital asset platforms.
The issuance of licenses is part of the goal towards addressing these concerns. Notably, the new legislation tightens the requirements crypto exchanges must comply with before receiving licenses. Over 55% of crypto platforms and exchanges with virtual currency licenses got licensed in Estonia under the old legislation.
However, following the tightening of the regulatory requirements, nearly 90% of previously licensed platforms could lose their authorizations and be forced to relocate.
For instance, any cryptocurrency provider seeking new licensing must now have €250,000 in capital reserves, up from just €12,000 under the previous law. Companies must also have a local office in Estonia and ensure strict compliance with KYC and AML checks.
CryptoWallet is among the very first to be licensed under the overhauled checks. Aleksander Smirmin, the COO of CryptoWallet, says the approval gives the team the go-ahead to launch new products. He noted:
“This sought-after license, once again awarded by the FIU, is the culmination of years of hard work and dedication by the CryptoWallet team. We are fully compliant, have the required shared capital, and are launching products that will enhance our users’ lives.”
According to details shared with Invezz, the crypto platform is preparing to unveil a crypto card before the end of the year. The crypto-linked card will support 800 cryptocurrencies.