The Estonian crypto asset service provider sector experienced a contraction in the first quarter of 2026, with the number of licensed firms dropping to 32 – a decrease of nine from the previous year, according to the Bank of Estonia. Simultaneously, client assets held by these providers plummeted by 42% year-over-year, driven by business closures, decreasing cryptocurrency values, and asset liquidations. These client assets represent a substantial 87% of the providers’ total balance sheets, with the vast majority – 92% – owned by individual investors. Notably, Estonian residents hold only a small fraction, 2%, of the total client assets, highlighting the sector’s international focus. The decline indicates a cooling trend within Estonia’s once-booming crypto industry. Further details are available at Estonian World.