New rules for obtaining a cryptocurrency license in Estonia
Estonia is one of the most convenient countries for cryptocurrency business. Over the past few years, 1.5 thousand companies have been registered here, providing cryptocurrency exchange / storage services around the world. Unfortunately, the simplified registration procedure provoked an influx of criminal capital. As a result, Estonians had to tighten the rules for crypto-businesses. But registration of cryptocurrency license in Estonia in 2021 became easier.
Changes in Estonian laws on cryptocurrency companies in 2021
A new money laundering law was passed in March 2020. It affected the following companies:
- those that have already obtained a license for cryptocurrency business;
- firms that have been issued a financial license.
By law, companies had until July 2020 to comply with the new requirements and prepare reports and documents. It is difficult to do this in a few months, so many turned to third-party specialists, including our company. We helped cryptocompanies to bring their businesses in accordance with the law, and they continued to work successfully in the Estonian market.
The appearance of a single cryptocurrency license
New regulations made it easier for cryptocurrency companies to operate thanks to a single cryptocurrency license. Previously, it was necessary to get a separate license for cryptocurrency exchange services and provide a virtual wallet. Most companies wanted to engage in two areas at once, and were forced to take two licenses. The emergence of a single form helped entrepreneurs reduce the time and effort they spent on collecting documents.
Transition of monitoring crypto activities
Previously, a cryptolicense was issued by the Estonian Financial Intelligence Department. Under the new law, the right to regulate the cryptocurrency market has moved to the Financial Supervisory Authority.
It is a mandatory requirement to have a physical office in the country. The presence of the administration will allow to effectively manage the business, as well as protect the rights and assets of the clients as much as possible. Without this condition, it is impossible to engage in cryptocurrency activities in Estonia.
Peculiarities of filing and consideration of papers
The time for consideration of papers has increased from 60 to 120 days. It is obligatory to submit the documents through a notary's office or with the help of the website of the Commercial Register.
To obtain a cryptocurrency license in Estonia 2021, one must open an account with a local bank or another EU country that operates here. This is one of the most difficult conditions because banks do not want to work with cryptocurrency projects. To solve the problem quickly, call our specialists. We will quickly find a bank that will open an account for you.
People who manage a cryptocurrency company must be crystal clear. There should be no criminal record and no involvement / suspicion of involvement in the fraud. You must also show documents that certify the qualifications and education of the managers of the company.
The authorized capital for companies that need a license increased to 12 thousand euros. All money must be paid in cash, but our specialists will help you to arrange payment in digital currency.
Amounts of state tax
The state tax for a cryptolicense has increased from 345 to 3,300 euros.
Benefits of cryptolicense in Estonia
Despite the stricter requirements, getting a cryptocurrency license in Estonia is beneficial:
- A license for a cryptocurrency company that has passed a rigorous screening process will not be revoked unless its owners violate the law;
- Clients and partners of a cryptocurrency company are protected at the same level as banks;
- The level of clients to cryptocompanies in Estonia 2021 is higher than to firms that were licensed in the gray or black offshore zone;
- Company services are available to all legal and private persons.