First Reading of the Crypto-Asset Market Act Bill (398 SE)
Session: 15th Riigikogu, 3rd sitting, plenary session
Date: 2024-04-09 16:22
Participating Politicians:
Total Speeches: 23
Membership: 15
Agenda Duration: 34m
AI Summaries: 23/23 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The fourth item on the agenda concerned the first reading of Draft Law 398 on the Crypto Asset Market before the Riigikogu. The purpose of the draft is to consolidate and clearly regulate the provision of crypto asset services in the country, align the terminology with the EU regulation, and increase investor protection and market transparency. The new regulation introduces uniform requirements for crypto asset service providers, while simultaneously remaining independent of the functioning of the technology and the nature of blockchain technology. The main changes concern conventional services, such as crypto asset exchanges and trading, and the obligation to obtain an operating license from the Financial Supervision Authority, information regarding project risks, and clear rules for withdrawal requests.
Decisions Made 1
The Finance Committee decided to include the draft act on the plenary session agenda for April 9, conclude the first reading, and appoint committee member Maris Lauri as the representative of the leading committee. Furthermore, the period for submitting amendments was set at 10 working days, with the final deadline for submitting amendments being April 23 at 17:15.
Most Active Speaker
The most active speaker was Anastassia Kovalenko-Kõlvart (pid _982niXL9oQ). She represented the Centre Party faction; her central role involved presenting the faction's proposals and critical questions, as well as shaping their overall position. Political alignment: other (Centre Party).
Aseesimees Jüri Ratas
AI Summary
The Riigikogu is debating the first reading of Draft Law 398 on the Crypto-Asset Market under the fourth item on the agenda, and requests a presentation from Minister of Finance Mart Võrklaev.
Rahandusminister Mart Võrklaev
AI Summary
The new European Union crypto-asset regulation integrates Estonian crypto-asset service provision requirements with the operating license issued by the Financial Supervisory Authority, standardizes terminology, enhances investor protection and market transparency, enables services to be provided in other EU member states, increases penalties for violations, establishes transition periods spanning 2025 to 2026, and raises the information requirements for offerings up to 8 million euros.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas said that the minister had at least one question, and Anastassia Kovalenko-Kõlvart asked for it to be presented.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart gratefully noted that although the amendment is based on an EU regulation, it implements stricter requirements than the regulation stipulates, that license applications will be transferred from the Money Laundering Data Bureau to the Financial Supervision Authority, and that old licenses will be revoked. At the same time, she asked whether the one-year transition period was a conscious decision by Estonia, even though the regulation does not mandate it.
Rahandusminister Mart Võrklaev
AI Summary
Providers of crypto-asset services now face stricter risk management requirements, such as the presence of two board members (the four-eyes principle) and, where necessary for larger-scale services, a supervisory board. Their supervision is handled by the Financial Supervision Authority, which funds itself through fees, whereas the Financial Intelligence Unit is financed by the state budget.
Aseesimees Jüri Ratas
AI Summary
Aivar Kokk is invited to speak.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
The speaker began by offering thanks to the chairman and the minister, and stated that the draft bill is on the right track.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev simply expressed his gratitude and concluded with the word "aitäh."
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk brought up two main issues: first, regarding the directives being transposed from the European Union, there is a reluctance to adopt stricter rules; and second, concerning the size of the share capital and the composition of the management boards of private limited companies, because the capital requirement for private limited companies is 2,500 euros, whereas debt collection firms are required to have 25,000 euros in initial capital.
Rahandusminister Mart Võrklaev
AI Summary
Võrklaev said that in drafting legislation, the directive must be followed, and if necessary, the required amendments to mitigate risks in the crypto sector should be made within a single bill. Furthermore, if service providers fall under the supervision of the Financial Supervisory Authority (FI), the FI must ensure adequate capital requirements, because 2,500 regulatory requirements may ultimately not be sufficient.
Aseesimees Jüri Ratas
AI Summary
The speech begins with a request to invite Anastassia Kovalenko-Kõlvart to the stage.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart stated that the number of crypto asset operators has fallen from 1,500 to 49 due to stringent requirements, and while supervision needs to be improved, there is a risk that revoking all licenses could lead to the disappearance of the remaining 49 operators as well.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev said that companies which have already received a license have until the beginning of 2026 to apply for a new one from the Financial Supervision Authority. He also stressed the necessity of further regulation in the crypto sector and ensuring unified requirements and oversight to enhance investor security and asset protection.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas thanks the minister, states that there are no questions, and invites Maris Lauri, a member of the Finance Committee, to the Riigikogu podium to deliver her report.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Finance Committee discussed the draft legislation on April 4th. It was decided to include it in the plenary session agenda for April 9th, conclude the first reading, and appoint committee member Maris Lauri as the representative of the lead committee. Furthermore, the discussion centered on the impact of the crypto market, the differences between Estonian and European Union regulations, the cooperation between the Financial Supervision Authority and the Financial Intelligence Unit, and the future of stricter requirements, liability, and fines in connection with corporate law reforms and changes related to commercial law.
Aseesimees Jüri Ratas
AI Summary
The rapporteur gives thanks and announces that there are no questions, subsequently opening the debate and inviting Anastassia Kovalenko-Kõlvart, representative of the Estonian Centre Party faction, to the Riigikogu rostrum to deliver her speech.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart criticizes the crypto asset market draft bill, saying that while Estonian supervision has strengthened, the new regulation introduces excessive bureaucracy. She adds that the transition to the Financial Supervision Authority and a transition period of only one year endanger already valid licenses and could drive companies to another member state, even if the goal is market cleansing.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas asks for three more minutes of extra time.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart criticizes the government's plan to impose such stringent requirements on the crypto market that not a single operator would remain in Estonia, causing investments to move to neighboring countries, and calls for the draft bill to be rejected on behalf of the Centre Party faction.
Aseesimees Jüri Ratas
AI Summary
Ratas thanked [the assembly], announced that there were no further requests to speak, apologized, and invited Aivar Kokk, the representative of the Isamaa Party faction, to take the floor.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk voiced criticism against stricter restrictions on cryptocurrency regulation in Estonia, emphasizing the need to foster entrepreneurship and investments, avoid creating additional obstacles, and find a balance with European Union directives.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas announced that the negotiations are concluding, and the Centre Party faction has submitted a proposal to reject draft bill 398 during its first reading, and they will bring it to a vote.
Aseesimees Jüri Ratas
AI Summary
The proposal was not supported, the first reading has concluded, the deadline for amendments is April 23rd at 17:15, the fourth item on the agenda is finished, and the speaker clarified an error in the third point: the deadline is April 23rd, not the 25th, still at 17:15.