The finance committee of the Riigikogu on Thursday sent to the plenary for the first reading a bill on the crypto assets market, initiated by the government, which would make both crypto asset service providers and issuers of crypto assets subject to supervision by the Financial Supervision Authority (FSA).
Annely Akkermann, the chairman of the finance committee, said the legislation would affect both existing virtual currency service providers and new entrants to the crypto asset market.
“For clients of crypto asset services and crypto asset owners, the transparency and credibility of the crypto asset market will increase,” the MP said.
She recalled that in May 2023, the relevant regulation of the European Union, dubbed the MiCA Regulation, entered into force, which establishes EU-wide rules for operating in the crypto asset market.
“It allows crypto asset service providers to offer their services under the same rules in all member states. The new law will ensure proper national implementation of this regulation,” Akkermann said.
The MiCA Regulation aims to support innovation and fair competition while ensuring adequate investor protection and the integrity of crypto asset markets. It regulates, for example, the licensing of crypto market participants, the organization of their governance, capital requirements, the duty to act in the best interests of the customer, honestly, fairly and professionally, the protection of customers’ crypto assets and funds, the handling of complaints, the management of conflicts of interest, etc.
Aivar Kokk, member of the finance committee, says he also deems it necessary to more precisely regulate the crypto asset market.
“Currently, crypto asset services are referred to as virtual currency services, and the requirements for providing virtual currency services are established in the Money Laundering and Terrorist Financing Prevention Act. Providers of virtual currency services must currently apply for an operating license from the Estonian Financial Intelligence Unit,” Kokk said.
In the future, the broader term “crypto assets” will replace “virtual currency,” and in order to be able to continue their operation, market players must bring their operations into compliance with the requirements arising from the MiCA Regulation, and a crypto asset service license must be obtained from the FSA.
The new law would also set forth additional provisions for supervision.
The crypto asset market bill will be put before the plenary of the Riigikogu on Tuesday, April 9.
Source: BNS
(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)