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Virtual Currency: The New Law for Virtual Currency

For issuing the license of virtual currency the Estonian Parliament has passed a new draft law but before discussing the law we have to know some common terms like what are virtual currencies and how the virtual currency wallet services are provided and who sell and purchase the virtual currencies.

What is virtual currency?

It is a type of digital money which can be issued and is to be controlled by the developers and the currencies are being used between a specific virtual community at a time. In layman terms, we can say that virtual currency is digital money which is used by the members and Developers help them to control them to use it. And a very convenient currency to develop the cryptocurrency market at a high level. Also, nowadays it is very famous in the digital world.

Generally,  who sell or purchase them:

The money which is used by the takers and the givers in terms of cryptocurrency or virtual currencies is basically used by the token takers but nowadays it is being used by normal people in paying online for their purchases which an easier method to do so.

What is the new law which is passed by the Estonian Parliament explain?

The Estonian Parliament has passed a new draft law in which there are some terms and conditions for issuing the activity license of any virtual currency to the developers who want to purchase or sell them.

Why the law has been passed by the government?

According to the research, Mr. Martin Helme who is the minister of Finance has said that the money laundering which is being increased in the cryptocurrency market will get reduced to some extent after applying these terms and conditions for virtual currencies. He also said that the institution has told them that this money theft has to be controlled by them in order to let the virtual currencies work properly and effectively. And some committee members of the finance has also said that it is very important to control this laundering of money in order to lead the industry work efficiently and to provide a good platform for the virtual currencies as well as for their growing future.

The draft which is passed for the license attained the given below importance:
  • This draft will make the activity license receiving and wallet services stricter and will apply stricter terms and condition in order to control the terrorism in finance offerings.
  • Also, while issuing the license for the virtual currency the finance intelligence unit will also examine the previous record of the members of any company or a single individual who wants to buy the license and after making sure that the person of the company is right then only they will issue the license.
  • Even one more law has been passed by the Estonian government that to purchase the license the registered company and the location of the company and the permanent address of the company has to be in Estonia but not in any different country and in case if they have their company in any different country then they have to open a new branch in Estonia to get the license.

Hence, we can say that the steps taken by the Estonian Parliament are very strict but on the other hand, they are also very important to control the theft in the virtual currencies and hence if the rules passed are followed properly then the virtual currencies in Estonia will be able to reduce the money laundering definitely.

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