CryptoWallet Receives Estonian Virtual Asset License, Outshining Competition

In the wake of a variety of changes to crypto legislation in Estonia, many companies are facing some tough decisions for the upcoming year. Estonian-based startup CryptoWallet has commented on how the company managed to renew its license despite far stricter rules this year. CryptoWallet is releasing a crypto card with 800 supported cryptocurrencies later this year.

For the last few years, Estonia has been considered to have a very low bar for entry for crypto platforms and services. Back in 2021, 55% of companies with a capital reserve of just €12,000 could expect to receive a virtual asset license.

But in 2023, all this has changed.

New legislation could see up to 90% of crypto start-ups in the region having their licenses denied, while those that remain could find themselves on some solid footing.

Why Has the Estonian Regulation Changed?

Estonian officials at the Financial Investigation Unit (FIU) have been quick to point out that prior legislation lacked the necessary regulations to protect the market and consumers alike.

The new legislation requires a higher degree of KYC, a clear business viability, and a much higher rate of capital reserve minimum of €250,000 for companies offering the full suite of licensed services.

CryptoWallet's COO, Aleksander Smirnin, summed up the situation. "This sought-after license, once again awarded by the FIU, is the culmination of years of hard work and dedication by the CryptoWallet team. We are fully compliant, have the required shared capital, and are launching products that will enhance our users' lives.

These new regulations have significantly raised the bar for current members and new hopefuls in the Estonian crypto space. While some consider the prices for license applications to be exclusionary, others see this as a chance for the overall quality of the sector to improve.

"We are telling market participants that it's not just a 'dog and a man' enterprise," said Mäeker.

For companies on the ground like CryptoWallet, who have had their licenses renewed for 2023, these conditions may be very favourable for the year ahead.

This new legislation will have the dual effect of rooting out unsustainable competitors while significantly improving the standards of compliance for the government and strengthening the protections for customers.