Despite the fact that Europe is focused on crypto-friendly policymaking, but the regulatory authorities in Estonia are willing to revoke all the crypto exchange licenses. This news was nothing less than a shocking incident. Estonia also revoked around 2,000 crypto licenses by the end of the last year.
However, the data reveals that there are still 400 crypto exchnages operating within the country that have license from the regulatory authorities. The fact of the matter is that the state’s federal regulatory authorities want to revoke the licenses of all the crypto exchnages operating within the country in order to enforce a new regulatory regime. The goal behind this approach is to control the country’s crypto-related operations as per the state’s desire.
Despite the fact that controlling the digital currency trading is an impossible task to do but the regulators seem determined to do that. Matis Mäeker, head of the Estonian Financial Intelligence Unit (FIU), has encouraged the state “to turn the current regulatory paradigm to zero and come up with the new regulatory paradigm.”
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Matis has argued that people are not fully aware of the hidden cons associated with the crypto currency. The customers are blinded by the lust of earning unlimited gains, however, in their pursuits of unlimited gains people often ignore the risks being involved in the digital domain.
However, the critics have responded that regulators are giving lame excuses. Since over the past couple of months the institutional investors have jumped into the crypto sector, it is the government’s failure that they have been not capable of making crypto a safe heaven as per now, said the critics.
However, during all this blame game the only victim in the country are crypto investors and crypto exchanges. Both are unaware of the future of the country’s future crypto policies. Matis Mäeker, in his response, pointed out multiple issues such as illegal crypto activity, like the use of crypto for money laundering and terror financing. Moreover, the Matis also said that crypto will not just leave country vulnerable financially, but it will also pose threat to country’s monetary framework.
He further added that Estonian financial market and economy is finally showing signs of recovery from the pandemic aftermaths. At this moment of time, it is risky to let crypto scammers damage the country’s economic progress. That’s why it is important to revoke the licenses of all the crypto exchnages operating in country. The policymakers should design a whole new regulatory paradigm for the crypto trading within the country before offering licenses again.
Regulators have said that:
The risks involved are too high, we need to act smartly and accordingly.”