Estonian government passes law to regulate cryptocurrencies from 2026

Estonian government passes law to regulate cryptocurrencies from 2026

The Estonian government has passed legislation that will transfer oversight of cryptocurrencies to the Financial Supervisory Authority (FSA) from 2026. The law aims to regulate local crypto service providers to control the emerging market.

According to local media reports, the law seeks to tighten operational and reporting requirements. However, the law still needs to go through a parliamentary vote to become valid.

By placing the companies under FSA supervision, Estonia can control financial crimes such as crypto business bankruptcies and cyber thefts.

According to Matis Mäeker, head of the Financial Intelligence Unit (RAB), crypto transactions will be under “real financial supervision” in the future. Until now, the Estonian regulator only addressed anti-money laundering requirements and ignored other significant financial threats.

Minister of Finance Mart Võrklaev also emphasized that crypto companies must obtain licenses from the FSA by 2026. Existing licenses from the Financial Intelligence Unit will also need to apply for a new license from the FSA.

Additionally, the penalty for violating money laundering regulations is currently 40,000 euros (US$43,450). However, under the new law, fines of up to 5 million euros (US$5.2 million) could be imposed.

Estonia's position in the global crypto world

Estonia is among the first countries to legalize cryptocurrencies and continues to have a positive attitude towards it.

The law would bring Estonia into line with the European Union's MiCA (Markets in Crypto-Assets) regulation. The MiCA framework was adopted last year and comes into force this year.

With its progressive legislation, favorable tax regime, simplified licensing process and vibrant fintech ecosystem, Estonia has positioned itself as an attractive destination for companies seeking a competitive advantage in the cryptocurrency space.

On the other hand, Estonia has fallen victim to large-scale crypto scams and scams, an investigative report reveals. International criminals have defrauded victims of more than 1 billion euros or laundered money.

Table: Permits for crypto companies in Estonia

Overall, current developments show that Estonia remains committed to regulating the cryptocurrency market while creating a transparent and secure environment. Shifting oversight to the FSA from 2026 will help curb risks associated with cryptocurrencies and increase investor confidence.

Sources:
– Estonia introduces legislation to regulate cryptocurrency providers