This is why 400 crypto companies are leaving Estonia

Estonia comes clean: After tightening AML laws, hundreds of crypto companies are leaving the Baltic state due to "non-compliance."

After Estonia recently tightened its law to prevent terrorist financing and money laundering (AML), some 400 crypto companies have left the country. According to a declaration of Estonia's Financial Intelligence Unit (FIU) shut down 200 domestic service providers voluntarily. Licenses were revoked from 189 others for "non-compliance with requirements."

"Given the submitted documents of the service providers who lost their licenses, their modus operandi and the risks involved, it can be said that the legislature's response was appropriate", emphasizes FIU director Matis Mäeker. Meanwhile, there are still 100 active crypto companies registered in Estonia, the statement continues. Already in 2020, Estonian regulators revoked the licenses of more than 500 crypto companies.

Since Estonia is part of the European Union, the small Baltic state will have the in the MiCA regulation established regulations must be implemented in the future.