The Estonian authorities have revoked over 1000 licenses from crypto-related firms, Postimees reports.
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According to the media, the Estonian money laundering data bureau revoked the licenses of more than a thousand companies from the digital currency space. Potential threats emerged last year, when there were over 900 licensed cryptocurrency companies in Estonia. Deputy secretary general Veiko Tali says that the regulation and supervision of cryptocurrency service providers "still require close attention."
"We need to monitor the development of new technologies and manage the associated money laundering risks," Tali said.
Tali also added that last year, entrepreneurs showed great interest in licensing cryptocurrency services. At the same time, he added, the possibilities for state control and intervention were limited. While the regulator decided to stop operations for more than 1000 cryptocurrency companies in 2020, almost 400 crypto-related service providers still work in Estonia.
As iHodl reported in September 2020, Estonia’s E-Residency project, a borderless digital society for global citizens, became popular among cryptocurrency scammers, according to the Estonia Financial Intelligence Unit's (FIU) report. According to the report, the program has been flooded with "suspicious initial coin offerings and the misappropriation of large sums within them."
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