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Category: Bank

Estonian Financial Sector Remains Immune to the Impact of Coronavirus

[vc_row][vc_column][vc_column_text]The situation is stabilising as banking institutions begin to invest in postponed projects.

“Compared to the economic crisis a decade ago, the current viral crisis has had little impact on the financial sector. Despite the uncertainty caused by the pandemic, during the first wave of Covid-19, a change in the credit schedule was desired by a relatively small share of enterprises and individuals, and the «stagnation» of the housing credit market did not last long. Bold to take risks slowly returns to enterprises, delayed investments begin to materialise, and banks dare to finance all this,» —  reported on the findings of the Development Monitoring Center report The Impact of the Viral Crisis. Scripts until 2030» expert of this organisation Uku Varblane.

Uku also noted that new financial technologies would set the tone along with traditional banking services in the following years. Upcoming opportunities could offer the internet of things and contactless payments.

However, the insurance sector was affected by the virus.

For example, due to travel restrictions, people no longer needed appropriate travel insurance, and the impact of the crisis on businesses focused on this area was huge. The crisis did not have much effect on the activity and volume of life insurance companies.

According to the expert, the overall change in the financial and insurance sectors in response to the COVID-19 pandemic leads to the development of virtual services.

“Innovation is facilitated by the need to offer customers convenient services in remote or digital form. The development of web channels is especially noticeable in the insurance sphere, where the presence of physical office becomes increasingly rare,» – explained Uku Varblane.

The specialists of LKS Consult OÜ will be happy to assist with company registration in Estonia.[/vc_column_text][/vc_column][/vc_row]

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Changes Coming to the Estonian Crypto Regulations: Investing Through LHV Bank

[vc_row][vc_column][vc_column_text]As cryptocurrency gaining more and more popularity, the Estonian Ministry of Finance considers adapting the law allowing crypto transactions to become more transparent.

Despite some Estonian banks offering the opportunity to buy corporate stocks selling bitcoins, investors approach the opportunity carefully. It could be explained by the instability of the crypto market that is poorly predictable with an uncertain reputation. In addition, the law regulating cryptocurrency is not fully adjusted.

“From the law’s perspective, this is still a grey area, as it is only partially regulated. Compared to banks, classical investment companies, securities exchanges, the cryptocurrency law does not work at such a level. We now have a regulation that firms offering major cryptocurrencies and platforms are required to register with the Money Laundering Data Bureau,” — says Treasury Department Chief Thomas Auwert.

Currently, around 400 companies are offering different services related to cryptocurrency. However, this year, some severe changes to crypto regulations could be implemented, allowing to combat crimes.

“Enterprises that offer services should be regulated, those who offer intermediary services or creation of virtual wallets. This should make clarifications to the industry. At present, apart from issuing a license from the Bureau, there are no more rules on money-laundering,” — says cryptocurrency expert Asse Souga.

At the moment, it is possible to invest in Bitcoin through LHV bank by opening a particular investment account.

Our specialists will be happy to assist in obtaining a license in the field of cryptocurrency in Estonia.

LKS Consult OÜ offers full support on all stages of developing your business, and offer a variety of services, including company formation in Estonia and accounting services in Estonia.[/vc_column_text][/vc_column][/vc_row]

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