According to reports, the new standards broaden the scope of Virtual Asset Service Providers to encompass DApps, Initial Coin Offerings, and associated services.
According to European compliance specialist Sumsub, Estonia is set to introduce sweeping changes to its definition of Virtual Asset Service Providers, or VASPs, beginning in February, to include several cryptocurrency-related services — a move that could impact Bitcoin investing and Bitcoin (BTC) ownership in the country.
As part of the government's attempt to combat money laundering and terrorist financing, the Estonian Ministry of Finance issued a draft bill on Sept. 21 to revise the Money Laundering and Terrorist Financing Prevention Act (the AML Act).
As Sumsub has said, the legislation is currently undergoing interagency assessment. The deadline for implementation is February 2022. Crypto enterprises that are regulated have until March 18, 2022, to get their operations and documentation in line.
The amended regulation basically outlaw’s non-custodial software wallets and decentralised financial solutions in the nation, according to New DeFi CEO Mikko Ohtamaa. This is because the bill's rules apply to VASPs in Estonia, which include crypto exchanges and wallets. VASP will be expanded to encompass decentralised platforms, initial coin offerings, and other services once the bill is completed. A penalty of up to $452,000, or 400,000 euros, might be imposed if the requirements are broken.
The new rule has the following consequence, according to Ohtamaa's interpretation: "You are only authorised to keep your Bitcoin in a custodial Virtual Asset Service Provider" (VASP). VASP has the ability to put a hold on your account. As a result, it's no longer your Bitcoin."
Estonia has outlawed not just #defi, but also #bitcoin which will effectively end crypto market investment opportunities through centralised providers, seriously nullifying options for Estonians that buy Bitcoin and altcoins.
In Estonia, downloading wallets and holding #bitcoin is no longer permitted.
Estonia was one of the first European Union nations to licence cryptocurrency firms, but it had to tighten its regulations when hundreds of billions of dollars in dirty money was uncovered in Danske Bank, putting Estonia at the centre of Europe's greatest money-laundering scandal.
According to Cointelegraph, the director of the Estonian Financial Intelligence Unit (FIU), Matis Mäeker, requested the government to "reset the regulations to zero and start licensing all over again" in October. He claims that the general public is uninformed of cryptocurrency's inherent vulnerabilities, including its purported role in money laundering and terrorist funding, as well as the industry's vulnerability to cybercriminals.
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards