500 Estonian crypto companies lost their licenses after money laundering scandal

Estonian authorities have revoked hundreds of crypto firms' licenses after the country is at the center of Europe's biggest money laundering scandal.

Last fall, the local prosecutor accusedA division of Danske Bank A / S in participating in illegal money laundering operations totaling $ 220 billion. After the proceedings with banks, regulators turned their attention to crypto industry companies.

Estonia was one of the first European countries to support digital currency technologies, but due to the rise in fraud, it was forcedrevoke more than 500 licenses of companies that have not started working within six months after their receipt.

According to Department of Financialsupervision, about 35% of permits were revoked because some firms used them as a cover to carry out illegal activities in other countries. However, the purge has not yet been completed and in the future, existing companies may also lose their license if they do not carry out operations in Estonia or their management is located abroad.

While the Baltic statestightens supervision over the crypto industry, Switzerland is opening up new business opportunities in this area. Recently, the local financial regulator for the first time allowed the bank to conduct transactions with digital assets.

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