Russian
English
Acquisition of cryptocurrency license in Estonia
In 2017 Estonian government set course for digitalization of economy and started creating favourable climate for the development of fin-tech companies and start-ups. One of the outcomes of this policy was adoption of the amended version of Anti-Money Laundering Act, where the terms “virtual currencies” (cryptocurrencies fall under this category) and “electronic cash-box” were introduced.
The main legislative innovation was the establishment of a special permission (a license) which allows to perform cryptocurrency exchange, including exchange for traditional or fiat money.
According to paragraph 2 and 70 of the Act, operations for “provision of services for cryptocurrency exchange for fiat money” and “provision of services of electronic cash-boxes for virtual currencies storage” require licensing at the Estonian Financial Intelligence Unit.
In conclusion we can highlight the following Estonian cryptocurrency exchange license advantages:
- Relative simplicity in comparison with other jurisdictions (for example, with MSB/Money Transmitter License in the USA)
- Minimum terms of the license procurement (decisions of the competent state authorities are made within 30 days);
- Relatively low cost of obtaining the cryptocurrency license in Estonia;
- No stiff requirements for the authorised capital of the company;
- Progressive tax rate in Estonia (In Estonia there is no profit tax. Bitcoins and altcoins are not subject to VAT. This means that monies received are not taxed for profit until dividends are allocated, which allows to conduct reinvestment permanently and without losses.).
How to Expedite the Process of Getting Estonian Cryptocurrency Exchange License?
To accelerate the process of obtaining cryptocurrency license in Estonia we recommend to get an e-residence card that may significantly simplify the process of communication with the state authorities, accelerate the process of obtaining licenses/permissions and so on.
For full information you can visit the relevant section of our website.
“Law & Trust” lawyers have essential practical experience and may help you to implement your project. With us the process of acquiring the license for cryptocurrency exchange will be passed within a reasonable time and at an affordable price.
The term for obtaining the license is up to 2 months.
