Financial regulators in the Baltic country of Estonia want to revoke all crypto exchange licenses in an endeavor to start the entire regulatory regime afresh.

Matis Mäeker, head of the Estonian Financial Intelligence Unit (FIU), has urged the country to "turn the regulation to nothing and start licensing all over again," local state-run news agency Eesti Ekspress reported on Midweek.

Mäeker claimed that the public is unaware of the risks of the cryptocurrency industry. Formerly the head of the Anti-Money Laundering section at the Fiscal Supervision and Resolution Authority, the official pointed out a number of related concerns, including illegal crypto activity, such as coin laundering and terrorism financing, as well as the industry's vulnerability to hacks, stating:

"These risks are very, very high. We need to react cardinally and very chop-chop."

About 400 companies in Estonia now hold a virtual nugget service provider (VASP) license, which is more than the full VASP licenses granted in the entire European Union, Mäeker claimed. Co-ordinate to the official, such businesses only use their licenses to "plough over very large sums, while Republic of estonia gets nothing out of it."

In its current state, the Estonian crypto industry neither creates jobs for citizens nor contributes "anything significant" to the state'south tax authorities, he stated.

Mäeker proposed to introduce stricter capital requirements for the industry, including potentially mandating crypto companies to have at to the lowest degree 350,000 euros ($404,000) either in cash or securities. The existing disinterestedness requirement for manufacture startups reportedly stands at just 12,000 euros ($thirteen,800).

Related: Europe becomes largest crypto economy with over $1T in transactions — Chainalysis

The official also suggested requiring crypto companies to ready more than secure Information technology systems and prohibiting them to accept anything only difficult cash for investment instead of options such as refinancing holding in order to increase investor protection.

As previously reported, the Estonian FIU started a major crackdown on crypto companies in June 2022, having revoked the licenses of roughly 70% of all VASPs in the land by December last year. According to Estonian Public Broadcasting, the regulator revoked a full of i,808 VASP licenses in 2022.