Regulations For Cryptocurrency Become Stricter As Estonia Adds Changes To Anti-Money Laundering Laws
Cryptocurrency has largely changed the way that many economies around the world function, and there is still debate on how to handle them. Anti-money laundering protocols have become necessary, as financial institutions fear security threats from cybercriminals. These protocols tend to impact cryptocurrency regulations, which is exactly what users can expect in Estonia.
The Estonian Ministry of Finance is planning to change a financial bill that was recently passed in their area, altering the way that AML regulations impact financial institutions. However, due to the way that the entity has setup their cryptocurrency regulations, the amendments will change the way that users interact with their digital assets as well, according to a report from Äripäev, a local news publication.
This new version of the Anti-Money Laundering (AML) and Terrorist Financing Prevention Act was initiated this week. It adheres to the rules outlined in the EU’s “Fourth Money Laundering Prevention directive.”
In the new regulation, there are “virtual currency exchange service providers” and “virtual currency payment service providers” introduced to the terminology. Formerly, the regulations only included “alternative means of payment service provider.” The Financial Supervision Authority (FI) still reminded the publish about the risk of having cryptocurrency and the potential for money laundering. According to the news publication, the risk of money laundering is the reason for the changes in the first place.
Earlier this year, Estonia had been planing to release their own digital asset, ruled by the government, called Estcoin. However, the initiative was heavily criticized by President of the European Central Bank Mario Draghi, leading to the delay of this launch.
Along with Estonia, Canada is working on their own anti-money laundering regulations for cryptocurrency. This decision was recommended during a review of Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA) by the Canadian House Finance Committee, which met earlier this month.