LICENCE TO TRADE CRYPTOCURRENCIES
IN ESTONIA

No limit for investments in virtual currencies, legal regulations
and low operating costs make Estonia a great place
to run a business related to cryptocurrencies.

Estonia is one of the few countries that regulated the issue of licences for cryptocurrencies and, more specifically, the activity of the entities that trade them. Its legislation is constantly trying to keep up with the changing market trends, further strengthening Estonia’s image as the most technologically advanced country in Europe.

Estonia is distinguished by its straightforward, friendly tax policy, in which cryptocurrencies are not subject to any particular tax such as VAT or PCC. No limit on investments in virtual currencies, legal regulations and low operating costs make Estonia a great place to run a cryptocurrency business and make cryptocurrency licences in Estonia more accessible. Check out below what requirements a cryptocurrency licence in Estonia entails and how long it takes to get one.

World Map sign on glass skyscraper with mirrored sky illustratio

Providing cryptocurrency
services in Estonia

A cryptocurrency licence in Estonia allows a company to operate trading platforms where it is possible to exchange virtual currency for fiat currency or fiat currency for virtual currency, or virtual currency for another virtual currency. In addition, this type of cryptocurrency licence in Estonia entitles the company to provide a service that generates keys for customers or stores encrypted customer keys that can be used to both store and transfer virtual currencies.

Licence requirements to trade
cryptocurrencies in Estonia

To implement a crypto licence in Estonia, one needs the participation of an authorised advisor (Contact Person) within Estonia. Currently, Thompson&Stein is the only law firm providing such services in Polish.

To obtain a licence, the Company is required to:

have the status of an Estonian company registered in the Estonian e-Business Register;

have a fully paid-up share capital of EUR 12,000.

have an office in Estonia and to run a business in Estonia;

each member of the Company's management board must be an Estonian resident;

prove that all associated persons (e.g., members of the management board, shareholders) have never been found guilty of an offence, especially against state authorities or for an offence related to money laundering. For this purpose, the Company must provide a clean criminal record certificate for each person, along with a CV. In addition, members of the company's board of directors must be Estonian residents, be in good standing, and are required to provide a list of their responsibilities for the position held;

describe the planned business activities and send the company's website address;

have a payment account in the European Union.

Additionally, the most challenging requirement for obtaining a licence to trade cryptocurrencies in Estonia is the preparation of internal AML and KYC procedures. As a law firm, we offer professional preparation and implementation of these procedures.

As it is required to have an office in Estonia and the status of Estonian residents by members of the management board of a company that has a licence to trade cryptocurrencies in Estonia, we offer additional services to help meet all these requirements.

THE TIMEFRAME FOR OBTAINING A LICENCE TO TRADE CRYPTOCURRENCIES IN ESTONIA

The company will receive a decision from the Estonian Financial Intelligence Unit (FIU) within 60 working days from submitting the complete application. It should be noted that during this time, the FIU may ask for additional information in relation to the cryptocurrency trading licence application.

By a decision of the FIU, the deadline may be extended to 120 days.

TAXATION

Except for the need to comply with a few additional reporting requirements, companies that hold a crypto licence in Estonia are not required to submit additional reports to the tax authorities. The accounting of such a company is subject to standard company regulations. Currently, we are the only entity that fully enables application for a licence to trade cryptocurrencies in Estonia under internal procedures while providing services in the Polish language.

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