THE REFORM OF THE CRYPTO LICENSES SYSTEM IN ESTONIA AND THE REGULATION ON MARKETS IN CRYPTO ASSETS PROPOSAL
DOI:
https://doi.org/10.5937/spz65-35127Keywords:
crypto, Estonia, bitcoin, MiCA, license, Danske bank, Estonian Financial Intelligence Unit (FIU)Abstract
As part of the EU’s Digital Finance Strategy, the European Commission’s proposed Regulation on Markets in Crypto Assets is currently going through its first readings in the Council. The goals of this regulation include protection of the customers, promoting innovation, unification of the regulation of cryptocurrencies at the EU market, etc. However, in parallel with this normative initiative, Estonia is already mulling the overhaul of its entire system of cryptolicensing. A Danske bank scandal demonstrated weaknesses of the current cryptolicensing and it is now on the Estonian government, as the first EU government to encounter this kind of situation, to try to improve current regulation. In this article, both MiCA and the roots of the potential overhaul of crypto-licensing in Estonia will be analysed.
Downloads
References
BBC. 2013. China Bans Banks from Handling Bitcoin Trade. Available at: https://www.bbc.com/news/technology-25233224.
Castaños, V. 2018. Mission-oriented R&Ipolicies: In-depth Case Studies Case Study Report e-Estonia. Luxembourg: Publications Office of the European Union. Available at: https://jiip.eu/mop/wp/wp-content/uploads/2018/10/EE_e-Estonia_Castanos.pdf.
Eglitis, A. & Blomberg. 2021. The ‘First Country to Regulate’ Crypto Is Preparing a Sweeping Crackdown on Digital Coins. Available at: https://fortune.com/2021/10/15/estonia-regulate-cryptocurrency-crackdown-digital-coins/.
Ehret, T. & Hammond, S. 2021. Compendium - Cryptocurrency Regulations by Country. Cryptocurrency Regulations by Country. Available at: https://www.thomsonreuters.com/en-us/posts/wp-content/uploads/sites/20/2021/06/Compendium_Cryptocurrency-Regs_FINAL.pdf.
FIU (Republic of Estonia Finance Intelligence Unit). 2021. Estonian Financial Intelligence Unit Withdrew an Authorization from Izibits OÜ, a Virtual Asset Service Provider. Available at: https://www.fiu.ee/en/news/estonian-financial-intelligence-unit-withdrew-authorization-izibits-ou-virtual-asset-service.
GetID. 2020. A Complete 2020 Guide to Cryptocurrency License Requirements in Estonia. Available at: https://getid.com/cryptocurrency-license-requirements-in-estonia/.
Ghosh, M. 2021. Is Estonia, once a Trailblazer in Crypto, now Killing It off?. Available at: https://forkast.news/estonia-wants-to-rescind-crypto-licenses/.
Gogo, J. 2020. Estonia Revokes 500 Crypto Firms’ Licenses After $220 Billion Money Laundering Scandal. Available at: https://news.bitcoin.com/estonia-revokes-500-crypto-firms-licenses-after-220-billion-money-laundering-scandal/.
Hazar, H. B. 2020. Anonymity in Cryptocurrencies. In: Bilgin, M.H., Danis, H. & Demir E. (eds.), Eurasian Economic Perspectives. Eurasian Studies in Business and Economics, 14(1), Cham: Springer, pp. 171-178. doi: https://doi.org/10.1007/978-3-030-53536-0_12.
Herm, M. 2014. Estonia: Taxation of Bitcoin Transactions, International Bureau of Fiscal Documentation. Online subscription database.
Jozipovic, S., Perkusic, M. & Ilievski, A. 2021. Cryptocurrencies as (I)legal Tender in North Macedonia an the EU. Iustinianus Primus Law Review, 11(2). Available at: http://lawreview.pf.ukim.edu.mk/wp-content/uploads/2021/02/9.-Sime-J.-Marko-P.-Andrej-I_.pdf .
Logan, B. 2019. The Case of Danske Bank and Money Laundering. Available at: https://sevenpillarsinstitute.org/the-case-of-danske-bank-and-money-laundering/.
Reynolds, M. 2016. Welcome to E-stonia, the World’s Most Digitally Advanced Society. Available at: https://www.wired.co.uk/article/digital-estonia.
Sovilj, R. 2021. Legal Aspects of Digital Asset Market in the Republic of Serbia. In: Reljanovic, M. (ed.), Regional Law Review. Belgrade: Institute of Comparative Law, pp. 297¬311. doi: https://doi.org/10.18485/iup_rlrc.202L2.ch18.
Stein, J. 2021. Cryptocurrency Advocates Find Treasury’s Yellen to Be a Tough Sell. Available at: https://www.washingtonpost.com/us-policy/2021/08/25/yellen-crypto-bitcoin-defi/.
Step. 2020. Seventeen Countries Fail to Implement EU 5AMLD. Available at: https://www.step.org/industry-news/seventeen-countries-fail-implement-eu-5amld.
Tassev, L. 2021. Estonia Considers Revoking Crypto Licenses as Government Mulls Tougher Regulations. Available at: https://news.bitcoin.com/estonia-considers-revoking-crypto-licenses-as-government-mulls-tougher-regulations/.
The Paypers. 2020. Estonia Revokes Crypto Businesses Licenses to Crackdown on Illicit Financial Flows. Available at: https://thepaypers.com/cryptocurrencies/estonia-revokes-crypto-businesses-licenses-to-crackdown-on-illicit-financial-flows--1242952.
Wass, S. 2020. Impact of Money-Laundering Scandal on Danske Banks Business Fading, CFO Says. Available at: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/impact-of-money-laundering-scandal-on-danske-bank-s-business-fading-cfo-says-56956647.
Wilkins, C. 2014. Money in a Digital World. Available at: https://www.bis.org/review/ r141114b.pdf.
Wockener, K., Losing, C., Freudenberger, C. & Gillenkirch, D. 2020. EU Regulation on Markets in Crypto-assets and DLT Pilot Regime. Available at: https://www.whitecase.com/publications/alert/eu-regulation-markets-crypto-assets-and-dlt-pilot-regime.
Legal Sources Estonia
General Part of the Economic Activities Code Act, Passed 23.02.2011, RT I, 25.03.2011, Entry into force 1. 7. 2014. Available at: https://www.riigiteataja.ee/en/eli/ee/527032015008/consolide/current.
Money Laundering and Terrorist Financing Prevention Act, Passed 26. 10. 2017. Available at: https://www.riigiteataja.ee/en/eli/517112017003/consolide.
Maksu-ja Tolliamet. 2014. Maksustamine Bitcoin’idega Kauplemisel. Available at: https://www.bns.ee/en/topic/1845/news/48153183.pdf.
European Union
Directive (EU) 2018/843 of the European parliament and of the Council of 30 May 2018 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU
MiCA. 2020. Proposal for a Regulation of the European Parliament and of the Council on Markets in Crypto-assets, and amending Directive (EU) 2019/1937 (Text with EEA relevance) {SEC(2020) 306 final} - {SWD(2020) 380 final} - {SWD(2020) 381 final}
EBA. 2019. Report with advice for the European Commission on crypto-assets. Available at: https://www.eba.europa.eu/sites/default/documents/files/documents/10180/2545547/67493daa-85a8-4429-aa91-e9a5ed880684/EBA%20Report%20on%20crypto%20assets.pdf.
ESMA. 2019. Advice Initial Coin Offerings and Crypto-Assets. Available at: https://www.esma.europa.eu/sites/default/files/library/esma50-157-1391_crypto_advice.pdf.
European Commission. 2018. Communication from the Commission to the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions FinTech Action plan: For a more competitive and innovative European financial sector, COM/2018/0109 final. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52018DC0109.
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Strani pravni život
This work is licensed under a Creative Commons Attribution 4.0 International License.
