Swaps renews Estonia crypto license

Features and advantages of the Estonian crypto license

At its core, the Estonian crypto license serves as a blueprint for legitimacy in the realm of blockchain and cryptocurrencies. This license allows and provides the following features:

• Companies in the blockchain and cryptocurrency industry to officially and legally provide their services and products, providing a legal basis for their operations;
• Gives companies global access to international markets.
• Build customer and investor confidence through regulatory compliance;
• Ensuring the protection of the interests of users and investors includes mandatory anti-money laundering (AML) and customer verification (KYC) measures;
• Companies holding a crypto license are required to comply with strict cyber security standards, which contributes to the protection of customer and user data;
• Promotes the development of a favorable and innovative ecosystem for startups and companies in the field of cryptocurrencies and blockchain;
• The crypto license interacts with the Estonian electronic ID program, providing companies with additional tools to manage and grow their business.
• Companies with a crypto license can count on support and cooperation from the Estonian regulatory authorities and the government.

Challenges

Obtaining an Estonian crypto license is not a confusing but time-consuming ordeal, despite carefully thought out processes. Due to recent reforms and amendments to the law, this license has become much more difficult to obtain and renew. All this so that local and international companies can thrive, produce innovative products and with high safety standards.

Since 2019, the number of crypto licenses received in Estonia has decreased tenfold from over 1200 to under 100 in 2023.

All of this is due to amended the Prevention of Money Laundering and Terrorist Financing Act on March 15, 2022. The amended laws expanded the defined scope of VASPs, required firms to have legitimate links to Estonia, increased licensing fees, and capital and information reporting requirements, along with introducing the Financial Action Task Force Travel Rule.

"Huge part of domestic crypto service providers voluntarily shut down or had their authorizations revoked by FIU Estonia. Swaps.app renewal process took 14 months and Swaps.app has succeeded where many others look destined to face difficulties. We are fully compliant, have the required shared capital, have viable product and business plan, risks are properly managed. Swaps. app worked closely together with FIU Estonia and it was tremendous work to build a strong compliance regulatory requirements on growth-oriented VASP business showing transparency within the crypto space. We are very happy to be part of this ecosystem and grow it!"
_{Linda Derkaca, Chief Compliance Officer at Swaps.}

Conclusion

Summarizing the above, the renewal of the Estonian crypto license for Swaps is a confirmation of the great work, efforts and commitment of the team to the mission of the company, the products and services that Swaps provides and the compliance of all processes with international security standards.

"In the coming years, the Estonian crypto license will only continue to develop. This is confirmed by its ability to adapt, respond to technological advances and shows that it will be a relevant and dynamic framework for the high standard of crypto companies operations, so and we're definitely thrilled to be a part of this."
_{Georgios Kalmpazidis, CEO Swaps.}

‍