Estonia’s government has stressed that upcoming rules do not imply a complete prohibition on anonymous cryptocurrency possession.
On Dec. 23, Estonia passed a draught law regulating some operations using cryptocurrency and virtual assets. Notably, it would have prohibited anonymous virtual currency accounts, expanding on a restriction that went into force in summer 2020.
The Estonian government has now clarified that this measure would apply exclusively to businesses and will have no impact on people who keep cryptocurrencies in personal digital wallets.
“The rule does not apply to clients, but rather to [virtual asset service providers] who execute operations for or on behalf of a natural or legal person as a permanent company,” the government said in a Sunday, Jan. 2, news update.
Financial Crimes Are Prevented Through Regulations
The Estonian government continued by noting that the requirements are comparable to those governing banks and payment processors, which are meant to combat financial fraud.
Additionally, the new legislation would boost capital requirements to guarantee that virtual asset service providers remain viable businesses. This method is intended to avert the sale of inactive virtual asset service providers to third parties located outside of Estonia.
The measure has not been adopted yet and must be read three times in the Estonian parliament before becoming law. The development follows expectations that India will impose regulations essentially banning bitcoin. Recent government declarations indicate that this is not the case.
Elsewhere, the United States’ Infrastructure Investment and Jobs Act will soon compel bitcoin exchanges and brokerages that receive more than $10,000 in cryptocurrencies to enhance their reporting obligations. Meanwhile, China has enacted a broad prohibition, prohibiting nearly all crypto trading via exchanges.
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