Estonia’s recent crackdown on cryptocurrency has seen almost 400 virtual asset service providers (VASPS) shut down or lose their authorizations since the government implemented its enhanced Terrorist Financing Prevention and Anti-Money Laundering laws in March.

The tightened regulations have expanded the defined scope of VASPs, increased licensing fees and capital requirements, and introduced the Financial Action Task Force Travel Rule.

In addition, companies must have legitimate links to Estonia and provide information reporting. The clear-out has left just 100 active crypto firms registered in Estonia as of May 1.

The move follows the discovery in 2018 that around $235 billion worth of illicit capital had been laundered through the Estonian branch of Danske Bank.