In February, the government of Estonia is set to introduce sweeping changes that could impact Bitcoin (BTC) ownership in their country.
The new definition for Virtual Asset Service Providers or VASPs will include several cryptocurrency-related services and may affect how people store digital currency on exchanges like Coinbase as it pertains to tax obligations thereon.
This information has been gathered through European compliance specialist Sumsub's research into current laws within member states such as ours here at America Incorporated.
The Estonian Ministry of Finance has published a draft bill to update their Money Laundering and Terrorist Financing Prevention Act.
The aim is that this will help them prevent money laundering, along with any other form or terrorist financing practices from occurring in the future!
Cryptocurrency organizations operating in the jurisdiction have until March 18, 2022 to bring their operations and paperwork into compliance with the new regulations.
This year, the Estonian parliament passed a new set of laws that effectively ban bitcoin and other cryptocurrencies. The purpose behind these regulations are to regulate what's known as "decentralized finance" or DeFi products such VPSPs (VASPs).
These include crypto exchanges or wallets which can store your digital funds; any company involved in providing services related to DF things could potentially be impacted by this legislation if they aren't careful when complying with country law.
"Under the new laws, you are only allowed to hold your Bitcoin in a custodial Virtual Asset Service Provider (VASP). If they freeze it then that's effectively like taking away all control of what happens with those coins."
Estonia became one of the first European countries to license cryptocurrency businesses, but it had a change of heart after hundreds-of billions worth dirty money from all over Scandinavia found its way into Danske Bank.
At this point Estonia has become at center point for what is becoming known as "the biggest money laundering catastrophe ever seen across our continent."
Matis Mäeker, head of the Estonian Financial Intelligence Unit (FIU) has called for a new round in cryptocurrency regulations.
He worries that without strict laws to protect consumers from financial losses due their lack awareness about cryptocurrencies or how easy it would be hack an individual's wallet--stressing out its role as well when laundered money falls into wrong hands because there aren't enough measures taken yet by countries around world against digital currencies which can also serve as passports electronic identity cards!
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I thought Estonia was crypto friendly. I guess at some point all European countries should have the same regulations with crypto.
Yeah you would think these smaller countries would be! Some haven't caught on yet, apparently ;)
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...meaning the banks and financial institutions want to control your crypto like they do your fiat.
But how are they going to force people to have their crypto held by a VASP? Anybody can download a wallet app.