Estonia’s new AML guidelines will ban non-Custodial & Defi platforms

Estonia is working to bring a new Anti Money Laundering law against all crypto-associated services to fight much more perfectly against the criminal activities in the crypto industry. 

In the present time, crypto and blockchain industry adoption is at a tremendous level, but besides the adoption of this unique technology, bad actors are also surging in the crypto industry. To fight against the illicit activities associated with the crypto industry is a big challenge at present because many decentralized and non-custodial services allow people to do work anonymously. 

On 21 September, the ministry of finance Estonia published a draft bill to bring more precise and better regulation on the crypto industry to prohibit illicit activities like money laundering and terrorist funding activities. 

According to a report from Sumsub, this drafted bill is now under the process of integration in the final stage. And the completion of the introduction of new AML guidelines will be done by February 2022. But all the crypto companies needed to work under new compliance since 18 March 2022. 

Newly drafted bill against Decentralized platforms 

Mikko Ohtamaa, CEO of New Defi, shared his point of view regarding this bill and said that the new bill impacts negatively the decentralized platform. In particular, it will ban all decentralized crypto services and also will ban the use of non-custodial wallets. 

Mikko also noted that the bill is ready but it will be further extended by the given authorities and after the extension, the bill will cover decentralized platforms, initial coin offerings, and other services. 

Violation of the new guidelines of Estonia will result in a fine of $452,000, or 400,000 euros. 

Mikko also pointed out that new rules will restrict the citizens to put their crypto assets in the custodial wallet, which means, your Bitcoin will not remain yours. 

Offering a non-custodial wallet in Estonia comes with a fine up to €400,000 pic.twitter.com/NiJSqIdKhW

— Mikko Ohtamaa (@moo9000) December 31, 2021

Read also: Ripple CTO Optimized Bitcoin Code in 2011