Regulatory changes for VASPs in Estonia Update regarding the draft of Money Laundering and Terrorist Financing Prevention Act
There is a lot of argumentations regarding the new regulation for VASPs in Estonia. Lex Law Office
will give you a short and prompt overview regarding the real situation to prepare your business for future potential changes. draft of the law should pass 3 hearings
in the Parliament before it will
The main purpose of the amendments of the current regulation is related to the Moneyval report, according to which virtual currency service providers were indicated as the riskiest industry in Estonia. The Estonian government is trying to implement the regulation, which will have more strict requirements for the VASPs to minimize the money laundering risk and make the market more transparent. Another important aspect is related to the FATF recommendations regarding VASPs and MiCA regulation, which should be implemented soon in all EU countries. As both the FATF recommendation and MiCA are having stricter requirements for the VASPs, Estonia wants to be one of the first countries in the EU, who is implementing the new regulatory regime for VASPs in Europe.
As you may know, Estonia was the first country in the EU in 2017, which started to regulate and provide the licenses for the VASPs. Now Estonia is planning to be again the number one jurisdiction in the EU, which is implementing the new rules for VASPs, which will be long-termed, customer protective, and transparent.