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500 Estonian crypto companies lose their approval after a $ 220 billion money laundering scandal

June 12, 2020

Estonia, one of the cheapest countries in the European Union for cryptocurrencies, acts in response to a money laundering scandal against hundreds of licensed cryptocurrency companies $ 220 billion to Bloomberg.

Estonia was one of the first countries in the European Union to license cryptocurrency companies, but had to take drastic measures After hundreds of billions of dollars of dirty money were discovered in the Estonian unit of Denmark’s largest lender, Danske Bank A / S. This puts the country at the center of Europe’s largest money laundering scandal.

License to harm

Madis Reimand, head of the Financial Intelligence Unit of the Baltic country, announced this Regulators suspect that licensed cryptocurrency companies are misusing their Estonian credentials to commit fraud elsewhere.

500 Estonian crypto companies lose their approval after a $ 220 billion money laundering scandal500 Estonian crypto companies lose their approval after a $ 220 billion money laundering scandal

As a result, permits from more than 500 companies have been withdrawn, roughly a third of the totalwhich had not started operating in Estonia in the six months after receiving the license. He explained that

“This is a first step to put the market in order and enable us to solve the most pressing problems by only allowing companies to operate that may be subject to regulatory and coercive measures in Estonia.”

The purge is not over yet

Reimand stated that stricter licensing measures will come. More than half of the country’s remaining cryptocurrency companies could also lose their licenses because they also have no branches in Estonia and their managers are outside the country.