Estonia’s Financial Intelligence Unit has partially suspended the operating license of BB Trade Estonia OÜ, the company behind crypto exchange Zondacrypto. The regulator stated the company is barred from taking new deposits or clients but must allow existing users to withdraw funds. The exchange faces a 30-day compliance window or risks full license revocation, amid broader European scrutiny over withdrawal issues and an inaccessible cold wallet reportedly holding 4,500 Bitcoin, valued at approximately $345.9 million.
A European regulator has partially suspended the operating license of the company behind troubled crypto exchange Zondacrypto. The Financial Intelligence Unit of Estonia took action against BB Trade Estonia OÜ, according to a statement.
The company is now barred from accepting deposits and onboarding new clients. Existing users are still allowed to withdraw their funds.
The suspension puts BB Trade Estonia OÜ at risk of losing its operating license if it does not meet compliance requirements. The FIU said the company has 30 days to bring its operations into compliance with legal requirements.
“If it fails to do so, the law obliges the FIU to revoke the operating license,” the regulator stated. The FIU did not specify what compliance breaches led to the suspension.
Estonia’s Financial Supervision and Resolution Authority previously issued a warning against BB Trade on May 8. It said the exchange’s “TeamPL” crypto token violated the European Union’s Markets in Crypto-Assets Regulation because it was listed without a white paper.
Zondacrypto faces broader regulatory scrutiny following withdrawal issues. Its CEO previously said an exchange cold wallet holding about 4,500 Bitcoin was inaccessible.
The suspension comes amid broader concerns around Zondacrypto, including reported withdrawal issues. Past comments by Polish Prime Minister Donald Tusk referenced around 30,000 potential victims linked to crypto-related losses.
Market data shows little to no recent trading activity on the exchange. Key BB Trade staff also left the company following earlier developments involving the exchange.
Founded in Poland in 2014 as BitBay, Zondacrypto has grown into a major European crypto exchange. The company has been registered in Estonia since September 2019, according to InfoRegister data.
Zondacrypto has since become part of a broader regulatory debate in Poland. Officials have raised concerns about its potential links to Russian capital and political influence.
Some Polish policymakers have criticized delays in the country’s implementation of MiCA rules. The exchange operated under its Estonian registration.
On Tuesday, the FSA issued a MiCA license to LHV Pank, one of Estonia’s largest banks. This makes it the second financial institution in Estonia to receive approval under the EU’s crypto regulatory framework.
