The move comes after the country revoked the licenses of around two-thirds of the cryptocurrency companies operating in Estonia.
According to ERR News, the Estonian Ministry of Finance has issued draft legislation last month that would enact stricter laws regarding the country’s cryptocurrency industry. Under the new law, the country’s Financial Supervisory Authority (Finantsinspektsioon) would be responsible for monitoring the sector.
Until now, the Financial Intelligence Unit (FIU), a part of the Police and Border Guard Board (PPA), was responsible for regulating the sector.
If passed, the new legislation would require the 381 crypto license holders in the country to reapply for an operating permit with the Finansinspektisioon and pay an additional fee.
Erki Peegel, an advisor with the Estonian Ministry of Finance, said the country’s goal was not to force crypto operators to close down. However, he noted there were currently only between 50 and 100 companies that would be able to comply with the proposed regulatory changes.
The deadline for the parliament to deliberate on the proposed legislation has expired on 5 February. Estonia’s recent political upheaval caused by the resignation of Prime Minister Jüri Ratas has put the passage of the proposed legislation on hold, ERR News reported.