The former head of the financial regulator of Estonia will head the representative office of the cry
More and more specialists who have held positions in state institutions of financial and market regulation approve of cryptocurrency and blockchain technologies. It became known that SG Veteris, a company providing fintech services based on cryptocurrency, announced the appointment of Raul Malmstein, former chairman of the Board of the Estonian Financial Supervision Authority (UFNE).
It is assumed that the ex-official will primarily be responsible for opening a new office in Estonia, as well as for the licensing procedure. Mr. Malmstein is also responsible for the daily business activities of the company in Estonia, where he will pay attention to two main brands - Bitpace (instant payment processing services) and Koinal (allows individuals to buy and sell cryptocurrencies).
SG Veteris, founded in 2016, is a global cryptocurrency-based fintech services group with headquarters in London and offices in five countries. The Group also aims to introduce a risk-based approach to AML (combating money laundering) and countering the financing of terrorism. As noted in the company's press release, the appointment of Raul brings it to the market leaders in preventing the above-mentioned threats.
Why is Estonia so attractive to foreign companies
A country with a population of only 1.3 million people has long been among the territories favorable for startups, including cryptocurrencies. Last year, more than half of the world's registered virtual asset service providers (VASPs) worked within the country.
In 2017, Estonia became the first country to start issuing crypto licenses, which allowed hundreds of companies to start working in the legal field, albeit relative. However, year after year, regulation is becoming more stringent. First of all, this is due to the large number of fraudulent projects that appear on the market. Since June 15, 2022, the state has established new Rules that mean that Estonian crypto companies will have to comply with the updated transparency requirements; they will no longer be able to have anonymous accounts and must have an authorized capital of at least 250,000 euros. A number of experts criticize the new rules as too oppressive, but the Estonian government says they are necessary.
In an interview with Euronews , the representative of the Ministry of Finance of Estonia Kristen Leppik noted the following:
"We don't want to close cryptocurrency wallets or ban cryptocurrency trading. This is not our goal and we don't want to regulate any DeFi or NFT. The main purpose of the new rules is simply to provide for some general or most common rules for investor protection in this area."
Given the tightening of legislation around the world, even in such crypto-friendly regions as Estonia, the appointment of former officials to key positions in a fintech company looks quite rational.
Thus, Raul Malmstein has almost 30 years of experience in the field of financial services. He held the position of Chairman of the Estonian Financial Supervision Authority for eight years, also being a representative of the UFNE in the Committee of European Securities Regulators. Previously, he worked for several years at the Estonian Ministry of Economy and at Hansa Asset Management, a subsidiary of Hansabank. Malmstein himself commented on his own appointment:
"SG Veteris allows both businesses and individuals to take advantage of the opportunities of cryptocurrencies. The new position gives me a unique opportunity to work at the forefront of global finance and allows me to combine my experience in the financial services sector with creative approaches within new organizations."
https://coin-signal.com/cryptonews/the-former-head-of-the-financial-regulator-of-estonia-will-head-the-representative-office-of-the-crypto-company/
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