Cryptocurrency definition in Estonian legislation
According to Estonian law, crypto currency can be referred to alternative payment facility. However, for this, it must be:
- Used for account management and monetary obligations;
- Have a clearly defined cost, i.e. convert at the rate to fiat money and vice versa.
Crypto-Currency Market Regulation in Estonia
The basic legal act in the field of the Estonian currency market regulation is the Anti-Money Laundering and Combating the Financing of Terrorism Act. According to it, a license is needed to work in the market, and the organizations that receive it are obliged to cooperate with the supervisory authorities and take measures to identify their customers.
There are 2 main regulator of the crypto currency market:
The Office for Countering Money Laundering - directly issues a license under which a financial institution can provide services in the field of the alternative means of payment. All information about the organizations admitted to work in this market is in the public domain. There is an electronic version of the Estonian Business Register, from which you can find out both the license number of the organization and the person responsible for compliance with the financial legislation.
The Estonian Financial Supervision Authority is supervisory authority that is trying to minimize money laundering in the crypto currency market. For these purposes, it has the right to make orders to organizations on the introduction of methods for controlling transactions and identifying customers.
To obtain a license for crypto currency, the following documents are required:
1. An application executed in a proper manner.
2. The company's rules in the field of combating money laundering and the financing of terrorism have the key importance when considering the issue of a license. It should contain the principles of customer identification and methods for analyzing the riskiness of transactions. It must have information about how the company and the regulatory bodies will interact, and also how the process of storing and exchanging information will be organized.
3. Algorithm of employees actions in the event that international sanctions are imposed against the client (or the person connected with him).
4. A certificate of the absence of previous convictions of the members of the management board, beneficiaries and other officials of the company is issued by the state authorities of the country of which the recipient of the certificate is a citizen. The validity period is 3 months. Before submitting, it must be translated into Estonian.
The presence of a conviction of at least one of the company's top executives can be a serious obstacle in deciding whether to issue a license.
The term for issuing a license is 30 days and can be extended if there are deficiencies in the documents submitted.
Order a license for crypto-currencies in the offshore
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