Estonian crypto license: an ongoing development story
The basic law regulating the sphere of the cryptocurrency market is the Directive of the European Union on countering Money laundering. Estonia became the first European country to include this normative act in its national laws.
However, the development of the country’s legislative framework has not ended there, which indicates a high degree of interest of the Estonian leadership in this market segment. From time to time, the Estonian society enters into discussions on what else can be improved in the process of regulating virtual currencies and crypto services. The main purpose of these discussions is to optimize the interaction of the parties and to protect all market participants.
Investors and enthusiasts of the crypto market appreciate such efforts and willingly register their projects in Estonia. So in 2019, 667 cryptocurrency exchangers were licensed to work here. In addition, this is not counting other crypto projects. Moreover, over the past three years, over a thousand licenses have been issued in the country.
Cooperation with Central Finexmo Limited guarantees you:
- A detailed consultation on the current legislation of Estonia regulating the use of virtual currencies;
- Quick registration of your business as a crypto services provider;
- Collecting, preparing and submitting the correct documentation to obtain a сryptocurrency license in Estonia for your business;
- Assistance in the selection of Estonian resident employees;
- Providing a list of competent candidates to choose an AML officer;
- Full professional legal support throughout the entire stage of cooperation;
- Obtaining the opportunity to carry out subsequent cryptocurrency activities on a reliable legal platform.
The uniqueness of Estonia for Crypto projects
In fact, there are no fundamental difficulties in the country that would make it impossible to use cryptocurrencies to pay for goods, services or make other transactions with them.
The legislation of Estonia has a transparent and understandable system of regulations aimed at taxation of crypto transactions; regulation of money laundering and terrorist financing that can be committed using any cryptocurrencies like bitcoin, litecoin, ripple and others:
- On the issue of VAT, Estonia takes the position that the exchange of ordinary currency to any of the cryptocurrencies and back is not subject to value added tax, as is customary in the process of exchanging traditional fiat currencies. This position is supported by the decision of the European Court of Justice regarding bitcoin.
- The Ministry of Finance of Estonia considers virtual currencies as alternative means of payment. In this regard, in order to prevent attempts at money laundering or terrorist financing, traders working with cryptocurrency are required to identify the identity of their clients. Special attention is paid to those persons whose transactions exceed the amount of one thousand euros per month.
You and Finexmo
- Do you have questions about obtaining a сrypto exchange license in Estonia?
- Do you want to register an Estonian crypto company?
- Do you dream of a career as the head of a virtual currency brokerage platform and a digital wallet provider?
- Do you need foreign accounts to implement your innovative financial projects?
- Do you need licensing of stacking services, issuing loans in cryptocurrencies, investment support for financial crypto transactions or operations with NFT (non-fungible tokens)?
- Are you looking for a team of professional lawyers specializing in cryptocurrency and corporate law issues to use them to improve the efficiency of your business?
Call the sales department of the international consulting company Finexmo and we will tell you all about our services in these areas!
Frequently Asked Questions
What types of crypto licenses exist in Estonia?
One, combined type of virtual currency service provider license is used here.
How long does the register cryptocurrency license in Estonia procedure take?
This procedure consists of two stages:
- the collection and preparation of the necessary documents;
- the examination of the application and the production of a license for the company.
The term of the first stage depends on how quickly the state authorities of your country will be able to provide you with the necessary papers. The duration of the second stage takes a maximum of 90 days.
Where should the main office of the company be located?
The Board of Directors of a company registered in Estonia must be located in the same country. The office must also have an Estonian address.
What is the minimum authorized capital for a crypto business registering in Estonia?
The size of the authorized capital for platforms providing crypto wallet services is 100 thousand euros, and for companies offering crypto exchange services 250 thousand euros.
Is it possible to form a company’s share capital in crypto currencies?
No, this financial asset can only be paid with fiat funds. However, these funds can later be used as part of the company’s working capital.
Other Crypto Licences: