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Estonian FinTech Sector Will Face New Requirements

22 January 2021, 13:26
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Votes: 2

According to recent news about the finance sector in Estonia, the country’s government has published a draft bill, which is aimed at setting new regulations for crowdfunding and crypto-assets verticals.

Estonian FinTech Sector Will Face New Requirements

The regulation will touch on companies that provide services related to investment in alternative sectors, such as crowdfunding or cryptocurrency.

Estonian government is afraid of unregulated FinTech market

The country’s Minister of Finance has stated that with the revolution in technological innovations in the finance vertical, the necessity of introducing regulations there has become crucial. However, he has also added that the law shouldn’t prevent the sector from developing by excessively restricted provisions. Its main aim is, first of all, to protect consumers.

The last decade has been marked by an increased interest in investment in crowdfunding projects and cryptocurrency. Such businesses aren’t regulated in Estonia, which results in a lack of legal protection for investors. The draft law will allow them to get complete information about alternative ways of funds placement. This will also help to control service providers and their offers to investors. It is expected that the Ministry of Finance will get feedback on the bill in February.

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