New Crypto Laws Go into Effect in Estonia

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Crypto laws around the world are changing at a blistering pace. The good news is that more and more countries are open to the idea of Bitcoin. With the fifth EU Anti-Money Laundering Directive coming into force in January 2020, many European countries are now allowing crypto assets to be used as payment instruments.

Estonia is the latest country to appear on that list. The country’s booming crypto sector will need a bit of time to adjust to the changes, but overall, many are excited by the prospect. Estonia has become a heaven for fintech companies and crypto online gambling, and these new laws will certainly open up the market even more.

What Has Changed?

As mentioned, the fifth EU Anti-Money Laundering directive went live in Estonia on January 5, 2020. Under the new laws, authorities officially recognized virtual currency exchange service providers and will treat them as financial institutions. To put it simply, cryptocurrencies can now be used as payment services in Estonia, but are not legal tender.

Right now, cryptos are digital goods in Estonia. However, when it comes to crypto exchanges, they must not operate without 2 key licenses. The first one is from a virtual currency exchange operator and the second must come from a licensed virtual currency wallet operator. Without these two licenses, crypto exchanges can easily go out of business in Estonia.

A country that has become a mecca for fintech and online crypto gambling companies, Estonia is one of the preferred destinations for young Europeans. Fintech companies are offering prospective terms and competitive salaries, so many Europeans are inclined to accept the offers and move to Tallinn (capital of Estonia). Online casinos are pretty popular in Estonia as well, and the latest recognition of cryptocurrencies can open up a whole new market.

Cryptocurrencies are getting increasingly more popular as payment methods in online casinos. Bitcoin offers all the security of the blockchain along with blazing-fast transactions which customers love. It’s definitely a unique alternative asset that can forever change the way Estonia handles payments. For the better, of course.

The Estonian Crypto Sector

One of the European cryptocurrency hotspots, Estonians are very interested in cryptocurrencies and Bitcoin. This is why the new laws will be met with positive response. However, at the same time, they might create repercussions, especially in the crypto exchange sector.

All exchanges that have previous obtained licenses will now have to comply with new laws. This might damage existing crypto exchanges who will have to get new licenses to continue to operate. The situation is not ideal for these businesses, but they will have to comply with the European directive. The cryptocurrency sector in Estonia will have to adapt to big changes, but it’s the only way to move forward.

What the EU Anti-Money Laundering Directive proposes is to accept Bitcoin and cryptos as legal means of money transfer. Under the new Estonia laws, you can use it to pay for various services, and that’s exactly what the booming crypto sector in the European country needs, no matter the challenges ahead.