Financial regulators in the Baltic country of Estonia want to revoke all cryptocurrency exchange licenses in an attempt to restart the entire regulatory system.

Local state news agency Eesti Ekspress reported on Wednesday that Matisse Meeker, head of the Estonian Financial Intelligence Unit (FIU), has called on the state to “reset the rules and start licensing again.”

Maker argues that the public is not aware of the dangers of the cryptocurrency industry. The official who previously headed the FSA’s Money Laundering and Solutions Division cited a number of related concerns, including illegal crypto activity such as money laundering and terrorist financing, as well as industry vulnerabilities, and stated:

– Efforts are very, very large. The answer must be principled and very fast. ”
Mäeker stated that around 400 companies in Estonia are now licensed as a Virtual Asset Service Provider (VASP), which exceeds the total number of VASP licenses issued throughout the EU. According to the official, such companies use their licenses only “for the delivery of very large sums, but Estonia does not receive them.”

He said that the Estonian crypto industry in its current state does not create jobs for citizens and does not contribute “something important” to the country’s tax authorities.

Määcker has proposed stricter capital requirements for the industry, including potential requirements for cryptocurrency companies to have at least € 350,000 ($ 404,000) in cash or in stock. The current share requirements for a startup in the industry are said to be just € 12,000 ($ 13,800).

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The official also proposed requiring crypto companies to build more secure IT systems and prevent them from accepting anything other than cash for investment instead of alternatives such as refinancing property to increase investor protection.

As previously reported, the Estonian financial intelligence unit launched a major attack on crypto companies in June 2020, revoking nearly 70% of all VASPs in the country by December last year. According to the Estonian Public Broadcasting, the regulator canceled a total of 1,808 VASP licenses in 2020.

Source: CoinTelegraph