The Estonian regulator has announced that it has no plans to ban cryptocurrency

The Estonian Ministry of Finance has announced that the new Virtual Asset Service Provider (VASP) bill will not prohibit customers from owning or trading cryptocurrency.

This announcement came after news spread that a new digital asset regulation would effectively ban Decentralized Funding (DeFi) and non-custodial wallets.

In addition, the draft law states that Estonian VASPs cannot be anonymous and must also identify their clients when providing services.

Depending on the services provided, VASPs will need to have a minimum share capital of 125 thousand euros to 350 thousand euros. For comparison, the current minimum share capital is 12 thousand euros.

The bill has been submitted to parliament and may enter into force in the first half of 2022.

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