Estonia, a startup-friendly digital nation, has renewed its cryptographic regulations. Striga, a crypto banking platform as a service, will move its headquarters to take advantage of it.
— CEO Bernardo Magnani
Tallinn, Estonia, May 2, 2022 /EINPresswire.com/-Building a world-class crypto banking platform requires the best licenses on the market-and Estonia is ready to offer
Witchweed, The latest challenger in the emerging crypto banking as a services sector has chosen Estonia as its headquarters. The Baltic states are highly digital and have built a reputation for being friendly to startups, especially crypto companies.
Although regulations have recently changed, Estonia celebrated Glia as the tenth unicorn. Since 2021, Striga is preparing to take advantage of the following fame of the newly implemented VASP (crypto) license with the aim of building a crypto banking ecosystem.
This change in the regulatory framework will change the Baltic financial ecosystem, creating both challenges and opportunities for Lithuania to stand up for that opportunity. The Baltic states may soon enter a new stage as FinTech hubs.
-Estonian state-of-the-art regulatory framework:
The journey to Estonia, dubbed “The Arrival of Silicon Valley in Europe,” undoubtedly began with the creation of Skype in 2003. By 2005, Estonia had become a unicorn and sparked, but only recently has things surged. Six unicorns have appeared since 2020, in total 10 in total..
The early crypto industry focused on: startup-friendly European countries, digital business ecosystems, and receptive regulations on digital assets? Estonia looked like a blessing. Therefore, in the last five years, hundreds of crypto companies have been established.
As expected, the Financial Intelligence Unit eventually realized the potential risk of being too open to virtual asset companies. Therefore, they passed a series of strict new regulations in March 2022, eliminating the crypto ecosystem, eliminating non-compliant companies and empowering fair players.
“The regulatory environment of European crypto companies is being integrated, which is a big challenge for crypto companies, but it is also a great opportunity for the best crypto companies. This is a fast-paced evolution of compliance in the crypto ecosystem. Is the beginning of. ”
–Striga CEO Bernardo Magnani
-Promising Baltic Opportunities:
This is a change in Estonia, but it has a direct impact on the entire Baltic region, especially Lithuania. In fact, it acts as a double bridge between both states, first for runaway companies and then for regulatory standards.
Currently, there are more than 400 crypto-related entities registered in Estonia. Most operate under lighter regulations and face compliance challenges unlike what we have encountered so far. Some have already begun to move to Lithuania and will continue to move.
This outflow of non-compliant companies will put Lithuania in a potentially dangerous position. Mykolas Majauskas, chairman of the Seimas Budget and Finance Commission in Lithuania, has announced plans to tighten regulations on cryptocurrencies. By following in the footsteps of Estonia, Lithuania reinforces its already outstanding position as a hub for EMI (e-commerce payment system).
Companies that want to survive will find that changing countries is not a solution, but a mitigation. In the long run, you can either go through the licensing process that Striga wants to be referredent to or partner with a licensed company.
As a benefit, companies that are willing to comply can build mutually beneficial relationships with regulatory agencies. In the United States, Coinbase has taken a compliance-first approach and has terminated its collaboration with the FCC to help them understand the new challenges of cryptography. The same type of relationship that Coinbase has built with US regulatory agencies could be built by up-and-coming Estonian crypto companies.
-Striga’s way so far:
While the Estonian market was developing, Striga was under development on the other side of the world. Its history is tied to Silicon Valley, at which time the company was honing its infrastructure via Y Combinator (W21).
Now, after a successful seed round, Striga has rallyed an international team representing six countries on five continents under one roof in Estonia. It has one goal. It’s about building next-generation banking services.
-The emergence of crypto banking as a service:
Like other pioneers in the universe, Striga is betting on new Estonian regulations as a sign of fame and quality.Now on the verge of deployment Cryptographic banking platform as a service, The company is focused on serving the cryptocurrency and fintech sectors. It provides the infrastructure needed to launch a comprehensive Fiat & Crypto Banking solution.
Rodrigo Carion
Witchweed
rodrigo@striga.com
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