The best alternatives to the Estonian Cryptocurrency License

The best alternatives to the Estonian Cryptocurrency License

Estonia is known for its progressive policy in the field of digital technologies and cryptocurrencies. The Estonian cryptocurrency license is in high demand on the market because Estonia is a member of the EU, and its license is recognized in all EU member states. However, there are also other options for licensing cryptocurrency businesses that allow them to operate in foreign markets.

Czech Cryptocurrency License

In the Czech Republic, licenses for activities related to cryptocurrencies are issued by the Czech National Bank (CNB).

  • The Czech license allows working with fiat money, while the Estonian license only allows working with cryptocurrencies.
  • The Czech license permits conducting ICOs, while the Estonian license requires separate permission for this.
  • In the Czech Republic, you can provide cryptocurrency custody services, which is prohibited in Estonia.
  • Czech regulators are more lenient when it comes to KYC and AML requirements.

Thus, the Estonian license is easier to obtain but comes with more limitations, whereas the Czech license offers more opportunities for a full-fledged cryptocurrency business.

The application and document submission process to the CNB takes about 3-6 months. After that, the bank verifies the information and makes a decision on the license issuance, which can take an additional 2-3 months.

The annual fee for the license is approximately €15,000 plus a 19% corporate income tax.

The Czech cryptocurrency license is one of the best in the EU in terms of cost, complexity of obtaining it, and the opportunities it opens for cryptocurrency businesses.

Lithuanian Cryptocurrency License

In Lithuania, licenses for activities related to cryptocurrencies are issued by the Central Bank of Lithuania. The license allows for a wide range of services.

There are four main types of licenses for legal entities in Lithuania:

  • OPK License - for cryptocurrency exchange points, allowing the exchange of fiat and cryptocurrencies.
  • EPP License - for cryptocurrency wallet service providers, permitting cryptocurrency storage and wallet services.
  • VAS License - for virtual currency service providers, enabling cryptocurrency trading and token issuance.
  • VPS License - for virtual currency exchange providers, allowing the creation of cryptocurrency exchanges.

With proper document preparation, the process of obtaining the license takes 3-6 months.

The annual maintenance costs for a Lithuanian cryptocurrency license are approximately €2,000-€5,000, plus a 15% corporate income tax.

Polish Cryptocurrency License

Like the other countries mentioned, Poland is actively developing legislation for cryptocurrency businesses. Licenses for activities related to cryptocurrencies are issued by the Ministry of Finance of Poland.

There are two main types of licenses in Poland:

  • License for cryptocurrency asset storage services.
  • License for cryptocurrency exchange for fiat and other cryptocurrencies.

Advantages of the Polish license include the ability to work with fiat money, offer cryptocurrency custody services, and easier access to bank accounts.

The process of obtaining the license takes from 3 to 6 months. The minimum annual costs are around 15,000-20,000 Polish złoty (approximately €3,250-€4,300). Additional taxes on profits and other expenses depend on the scale of the business.

If you are interested in registering your cryptocurrency business in a European jurisdiction, we recommend consulting specialists at IT-OFFSHORE. Our experts will find the optimal solution tailored to your specific case.

To improve your experience on our website, we would like to use cookies. This means that we collect some information about your activity while you are on the website.