Key Highlights
- Estonia’s FIU partially suspended Zondacrypto operator BB Trade Estonia OÜ’s crypto license.
- The exchange can no longer accept new client assets or onboard new customers.
- Existing users can still withdraw and recover their fiat and crypto holdings.
The Financial Intelligence Unit (FIU) of Estonia has partially suspended the operating license of BB Trade Estonia OÜ, the company operating under Zondacrypto, a digital asset investment platform and cryptocurrency exchange.
According to the official announcement, the decision affects operating license no. FVT000209. The suspension prohibits BB Trade Estonia OÜ from accepting any additional assets, including fiat funds as well as crypto assets, from its existing clients. The firm is also restricted from entering into business relationships with new clients.
It is important to note that the restriction does not impact the ability of existing clients to withdraw or return their assets. The FIU highlighted that clients can still access and retrieve their funds and cryptocurrencies held on the platform.
The regulator also ordered BB Trade Estonia OÜ to bring its operations into full compliance with the conditions needed to hold the operating license. The partial suspension will be curbed once FIU verifies that the company has addressed all identified issues and meets all legal requirements.
Firm given 30 days to rectify the issue
The company has 30 days to analyze and rectify the situation and achieve compliance. If it fails to do so within the period, the FIU will legally revoke the operating license completely. The precept was issued based on Section 75(1)(4) of the Money Laundering and Terrorist Financing Prevention Act and Section 43 of the General Part of the Economic Activities Code Act.
The FIU’s action is in line with the ongoing supervisory efforts to ensure compliance with anti-money laundering (AML) and other regulatory standards in Estonia’s virtual asset service provider sector.
Such partial suspensions are mostly taken as corrective measures before more strict actions, such as full license revocation. The regulator has advised that if clients of BB Trade Estonia OÜ encounter difficulties in recovering their assets, they should contact the police authorities in their country of residence for assistance.
Fraud probe adds to regulatory pressure
Recently, a fraud probe was launched by Polish prosecutors against Zondacrypto, following complaints by thousands of customers who couldn’t withdraw money from their accounts. The authorities believe that customer losses have gone beyond 350 million zlotys ($95.93 million).
Polish Prime Minister Donald Tusk has linked the case to national security concerns, stating that intelligence reports suggested the exchange’s origins were “particularly shady” and may involve the Russian mafia.
The scandal deepened after founder Sylwester Suszek disappeared in 2022. His successor, Przemyslaw Kral, is reportedly in Israel, which may hinder extradition efforts.
Increased regulatory scrutiny
The development comes at a time when there is increased regulatory scrutiny of crypto asset service providers in the European Union, as countries within the union enforce more stringent supervisory frameworks like the MiCA regulation.
As it stands, no other statement has been issued by BB Trade Estonia OÜ and the Zondacrypto platform concerning the suspension. Client and stakeholder advice is to keep an eye out for any official communication from the Estonian FIU as well as from the firm itself.
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