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Estonia’s crypto reputation seemingly on the line following new findings from local regulators

Estonia’s crypto reputation seemingly on the line following new findings from local regulators

Quick Take

1 minute read

  • Regulators in Estonia are now looking at the e-residency program as foreigners registered as e-residents of the nation are allegedly in cahoots to cryptocurrency-related fraud.
  • The financial intelligence unit of the local authorities has found that companies owned by e-residents of Estonia are also involved in several large-scale exit scams.

Regulators in Estonia are now looking at the e-residency program as foreigners registered as e-residents of the nation are allegedly in cahoots to cryptocurrency-related fraud.

The financial intelligence unit of the local authorities has found that companies owned by e-residents of Estonia are also involved in several large-scale exit scams.

Interestingly, the country became the location of a $220 billion money-laundering scandal earlier this year in 2020 and as a result, regulators in Estonia immediately revoke the licenses of more than 500 cryptocurrency-related companies as a response. Just over 350 companies now own a crypto license in the nation today compared to the 1230 that owned one by the end of 2019. Things seem to be changing in Estonia when it comes to their attitude on cryptocurrency.

This scandal alone has already cost enough damage to the plans of the further digitisation in Estonia. With further crypto malicious activity expected to occur in the near future, the reputation of Estonia is on the line.



It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

 

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