TMCnet Feature
September 10, 2020

Estonia's Ongoing Journey To Become A Crypto Powerhouse of the World



Ever since the release of Bitcoin about a decade ago, very few countries have fully embraced the technology. Various countries are not yet fully accepting of the crypto-based idea while others continue to maintain an ambiguous stance. Among these, the tiny Baltic nation of Estonia has managed to pop up on everyone’s radar with its ways of accepting and embracing this technology.



Estonia has not only embraced the Bitcoin lifestyle but also continues to promote it through various ideas. For example, the country launched an e-residency scheme which would allow anyone in the world to start a digital business. These schemes and promotions have led to various companies such as Skype (News - Alert) to join them and their thriving culture.

Many factors are responsible for Estonia’s surge to success in the crypto world. For starters, the country has a massive backing for the technology in the form of start-ups, investors, big names and blockchain investors. For many people today, the capital city of Tallinn is one of the biggest rising digital finance cities in the world.

The path to a crypto-based living has been rocky and there have been many noteworthy moments. At one point, the government of Estonia had proposed a state-wide cryptocurrency that would provide the people with financial convenience and liberty. Many restrictions and regulations have come up since then. Some of these tend to threaten the future of the country by imposing problematic rules on many companies.

Take, for instance, the process for obtaining a cryptocurrency license. Earlier, this process would be simple and for a total amount of around three fifty euros, you could obtain a license within thirty days. Since December, many new concerns were raised concerning money laundering and the country has since then complicated this once simple procedure. Today, getting a license would cost your north of three thousand euros in addition to various strict requirements and a waiting period of about ninety days.

Many of these changes came as a surprise to lots of people in the digital sector. People have considered Estonia to be a crypto-friendly nation and while these changes do not contradict any of the in-place notions, they do further complicate things. Despite recent blows, the country still maintains healthy crypto figures that have risen in double digit percentages for the last two years.

There have been countries in the world that have considered banning many cryptocurrencies such as Bitcoin or Altcoin forever, but Estonia has never shown the slightest inclination towards such a stance. In fact, the hospitality provided to Bitcoin has led it to become one of the fastest rising crypto markets in the world and the 237 Billion dollar industry does not look like it will take a turn for the worst any time soon.

Recently, a surprising law that was brought up by the country was that which requires you to provide an explanation for your payment if it exceeds a thousand euros worth of cryptocurrency (per month). If you are exceeding this amount, you will be asked to provide an explanation for your payment and identify yourself. While this law has come as a surprise to some, it is still a soft measure compares to the rather serious rules that other European countries have implemented. Since the concept of a digital economy is still in its infancy, there are likely to be a lot of changes made before a status quo is established.

Many people also believe that it is only normal for Estonia to impose further rules as and when it generates more interest from companies around the world. With an added interest, comes the added chance of illegal trades and problematic transactions. To tackle these, there will be certain laws imposed in due time. Despite this, the country is still very much committed to becoming one of the biggest technological cities in the world. These latest laws and restrictions may be an attempted to stunt growth but a better way to look at it is by seeing it to regulate growth. With the help of these laws, organic growth can be promoted by keeping illegal activities at bay.



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