The Estonian government has introduced a new crypto regulation framework effective in 2026, aiming to bring digital asset operations in line with traditional banking standards. This move is expected to enhance the security and transparency of the crypto market.
Estonia has revamped its crypto regulation framework, setting a new benchmark for digital asset oversight. From 2026, crypto businesses will be under the strict surveillance of the Financial Supervision Authority. This marks a significant shift from the previous, more relaxed approach that focused primarily on anti-money laundering.
Matis Mäeker, leader of the Financial Intelligence Unit, emphasized the need for crypto firms to implement robust systems similar to those of traditional banks to safeguard client assets effectively. Estonia, once home to thousands of crypto entities, now hosts only around 50 firms, reflecting the country's serious crackdown on non-compliant firms.
The new legislation significantly increases operational and reporting standards and sets fines up to €5 million ($5.4 million), a substantial hike from the prior €40,000 cap ($43,290). Finance Minister Mart Võrklaev stated that companies must adapt to these stringent requirements by 2026 to maintain their operational status.
Estonia's regulatory overhaul signifies a proactive approach to digital asset management, aiming to eliminate financial malpractice and enhance the security of its digital economy. As Estonia enforces its new rules, the crypto arena in Europe is set to become more structured and transparent.
