After more than six months of discussing the bill, the final version of the law on amendments to the licensing and activities of cryptocurrency companies is finally sent to the President for signing. It is planned that the changes will enter into force on March 10, 2020.

Let’s analyze in detail the new requirements for applicants for a license:

  1. Instead of several licenses, a single license of a virtual currency service provider is introduced;
  2. State duty increases from 345 euros to 3,300 euros;
  3. A requirement for a minimum authorized capital of 12,000 euros is being introduced;
  4. The legal address, the place of the actual business of the company and the place of management of the company must be in Estonia;
  5. The company account must be opened with a financial institution registered in the EU or EEC (bank or payment institution);
  6. The requirement for professional skills and the absence of a criminal record was supplemented by a requirement for an impeccable business reputation;
  7. A criminal record certificate for countries where such a document is not issued at the country level may be replaced by a statement about the absence of a criminal record under oath in the presence of an Estonian notary.

What should those who obtained a license before March 10, 2020, do?

A transition period has been introduced for license holders until July 1, 2020. If it does not meet the new requirements, the company will be deprived of its previously issued licenses.

  1. An increase in the authorized capital to a minimum amount of 12,000 euros;
  2. Transfer of the office and board of the company to the territory of Estonia;
  3. Introduction of a resident of Estonia to the board;
  4. Opening a bank account in the EU;
  5. Bringing all activities in line with the updated requirements of AML legislation.

These are the most important changes, in our opinion, that will affect all current and future owners of crypto licenses in Estonia.

The text of the amendments and the history of the adoption of the bill can be found here.

For complete information on the necessary measures to comply with the new legislation of Estonia, please contact the managers of Law & Trust International.

Our specialists assist in meeting new requirements, resolve issues related to opening an account, hiring an AML officer, renting an office, and other issues.