The Estonian Financial Supervision and Resolution Authority announced that, from 1 July, crypto asset services in Estonia may be provided only by firms authorised under the European Union’s Markets in Crypto-Assets Regulation by the authority or by a supervisory authority in another European Economic Area contracting state. In parallel, the Financial Intelligence Unit will cancel the existing register entries for virtual currency service licences on 1 July, ending the previous licensing regime. Firms that have not received authorisation by 1 July must stop operating or restrict their activities to protect clients and avoid unjustified financial harm. Unauthorised firms may not take on new clients, open new accounts or actively market services in the European Economic Area from that date, while firms still awaiting a decision on their application must limit activity until a final determination is made. Providers must clearly inform clients how services will be terminated or restricted, the deadlines involved, and how assets can be withdrawn or transferred to an authorised provider. The Financial Intelligence Unit also said all companies that provided virtual currency services in the second quarter, including those whose licences are cancelled, must submit regular reports through the Eesti Pank data submission portal by 20 July. Only one crypto asset service provider, Lightspark Payments Europe AS, has so far received authorisation from the Estonian Financial Supervision and Resolution Authority. Crypto asset services may also be provided in Estonia by AS LHV Pank, the investment firm Lightyear Europe AS, and several firms operating cross-border under authorisations from other European Economic Area countries.

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