Estonia has passed an anti-money laundering law. How does it threaten the cryptocurrency sphere?

В Эстонии приняли закон о противодействии отмыванию средств. Чем он грозит криптовалютной сфере?

  • The Ministry of Finance of Estonia is preparing amendments to the Law on the Prohibition of Money Laundering (AML)
  • In fact, the bill prohibits the work of DeFi projects and third-party wallets
  • VASP will be able to freeze any of the accounts on suspicion money laundering

At the end of September, the Ministry of Finance Estonia has published amendments to the law aimed at preventing money laundering in the country. Currently, these papers are under interdepartmental agreement. The updated law is expected to enter into force by the end of February this year.

If this happens, thousands of BTC holders across the country could lose their assets. The fact is that the bill assigns control over cryptocurrency transactions to virtual asset service providers (VASP).

Industry companies have time until 20 March to amend its documentation and reorganize the work. Otherwise, they will be fined up to 432 thousand euros …

As for ordinary users, they are now allowed to store BTC only on licensed wallets from VASP. The rest of the accounts will be blocked.

The founder of the Capitalgram project, Mikko Otama, believes that the real task of the bill is to “put an end to” the entire field of cryptocurrency transactions. In fact, this is an example of strict regulation of decentralized financial flows.

The Estonian government had to take this step due to the numerous precedents of money laundering in the country. In Danske Bank alone, millions of dirty dollars have been found. This put the country at the epicenter of an international scandal.

Earlier we talked about attempts to “take control” of the crypto-sphere in India and the USA.

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