Oksana Bibikova Your ref 19.05.2021
LensLegal OÜ
[email protected] Our ref 04.06.2021 no 1.2-2/18-2
We hereby forward answers to your questions regarding the due diligence measures received on
the 19. May. With the request you have asked FIUs answers for the following questions:
1. Does condition 1(2) "The currency exchange service may be provided without identifying the
person participating in the transaction of the value of the amount exchanged in cash in a one-off
transaction or linked transactions do not exceed 1,000 euros "stipulated under Article "§ 25"
applies also to the virtual currency service provider?
The condition stipulated in the section 12 of the § 25 of Money Laundering and Terrorist
Financing Prevention Act does not apply to the virtual currency service providers who must,
according to the section 1 of the same paragraph, identify all persons participating in the
transaction without any threshold. The exception (brought out in the question) applies only to a
foreign exchange service providers where they accept cash, exchange it to a foreign currency and
issue it to client (the cash is meant as physical cash).
2. If yes, does this condition where the "value of the amount exchanged in cash in a one-off
transaction or linked transactions" apart from mentioned cash also applicable to fiat and
electronic transactions?
As stated in the answer for the previous question, the virtual currency service providers must
identify all persons participating in the transaction without any threshold.
3. In our understanding, paragraph 1(2) of Article § 25 is related to the "virtual currency service
provider" that provides virtual currency exchange services and allows the "virtual currency
service provider" not identifying the person participating in the transaction of the value of the
amount exchanged in cash in a one-off transaction or linked transactions does not exceed 1,000
euros if the transaction also has been done electronically/remotely.
The Money Laundering and Terrorist Financing Prevention Act specifically forbids the virtual
currency service provider to offer services without identifying person participating in the
transaction. If such transaction is allowed the virtual currency service provider breaches the duty
to identify person and verify person’s identity stipulated in the § 84.
Yours sincerely
Marget Lundava
Acting Head of FIU Estonia
Pronksi str 12 / 10117 Tallinn / ESTONIA / (+372) 612 3840 /
[email protected] / www.fiu.ee
Register code 77001412