In our previous newsletter we informed you about the supervision fee system. The total cost of our supervision on crypto service providers for 2020 is estimated at EUR 1.7 million. These costs are specified in our ZBO budget, which has been approved by the Minister of Finance.
We charge this amount to the institutions concerned. It consists of (1) fees for one-off supervisory actions such as registration and propriety assessments of policymakers, and (2) a basic fee for regular supervision. We informed you about the preliminary fees for one-off supervisory actions previously on our website.
As supervision of crypto service providers is a new activity, we will only charge a basic fee for regular supervision in 2020. We will invoice this amount in the second half of 2020. The Minister of Finance will set the amount of the basic fee no later than 1 June 2020, stating it in the 2020 Regulation on the Funding of Financial Supervision, which will then be published in the Government Gazette.
We charge the basic fee to the parties that are subject to our supervision in 2020. They are (1) existing providers that request registration before the Act enters into force. They therefore benefit from the transitional regime irrespective of whether and when they are registered; and (2) parties that request registration after the Act has entered into force and are registered in 2020. Depending on the time of registration, we will charge parties in the second category a lower fee, because they will not be subject to our supervision until the time of registration, and they will not be permitted to provide any services until then.
The amount of the basic fee will be based on an estimate of the number of parties that will be subject to supervision in 2020. Since the actual number of new market entrants is uncertain and fees should not be unduly high, the Minister considers it reasonable to assume a large number of new entrants. As a result, the amount we charge for regular supervision in 2020 will at any rate be less than EUR 20,000. For the sake of completeness, we note that the amount stated in the 2020 Regulation on the Funding of Financial Supervision will be higher. This is because this amount must be fixed for a whole calendar year. We charge it to the various institutions pro rata to the period during which they are subject to our supervision.
If some of the costs should not be covered by the fees for the one-off supervisory actions and the basic amount for regular supervision, we will charge the remaining amount to the registered parties in 2021. Unlike 2020, however, in 2021 we will be able to charge remaining fees in proportion to the institution's turnover. This ensures their contributions are means-tested.