The Estonian parliament passed on Wednesday a government-initiated cryptocurrency market law, placing both cryptocurrency service providers and issuers under the supervision of the Financial Supervisory Authority (FSA).
The bill was passed with 52 members of the Riigikogu voting for and 19 against.
Last year, the European Union’s Markets in Crypto-Assets Regulation (MiCA) came into force, allowing cryptocurrency service providers to offer their services under the same rules across all member states. The domestic law ensures proper implementation of this regulation in Estonia.
The regulation aims to support innovation and fair competition while ensuring adequate investor protection and the reliability of cryptocurrency markets. It regulates, for example, the issuance of activity licenses to market participants, arrangement of management, capital requirements, obligations to act in the best interests of clients, protection of clients’ crypto assets and funds, handling of complaints, and management of conflicts of interest.
Currently, cryptocurrency services are referred to as virtual currency services. Going forward, the broader concept of crypto assets will apply, and to continue operating in the field, businesses must comply with the requirements of the MiCA regulation and obtain a cryptocurrency service license from the Financial Supervisory Authority. The bill also includes additional provisions for supervision, analogous to regulations provided in other financial sector laws, ensuring equal treatment of asset classes.
During second reading, among other changes, an amendment was made to extend the transition period for new requirements by six months. This means that market participants must comply with the regulation’s requirements by July 1, 2026, at the latest.
Source: BNS
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