How to get a cryptocurrency license in Estonia in 2022

Estonia is one of the most popular countries for crypto-business. Work with digital currency is regulated by law, the license is inexpensive, and the procedure for obtaining it is fast. A company that received it can work in many European countries. Today we will talk about how to get a cryptocurrency license in Estonia.

Features of Estonian cryptolicense

In 2017, Estonia has taken the course of digitalization of the economy. It began to create a favorable climate for the development of fintech companies and startups, paying special attention to cryptocurrency.

As a result, the Anti-Money Laundering Act was amended to include the terms "virtual currencies" (all cryptocurrencies fall under this category) and "e-cash". The main innovation was the licensing of companies that exchange cryptocurrencies, including traditional money.

In 2019, Estonia amended the registration rules for cryptocurrency activities. They affected both current license holders and license applicants:

• Previously, there were 2 cryptocurrency licenses - for cryptocurrency exchange and services of providing a virtual wallet to store cryptocurrency. Now they have been merged into one, which has simplified the registration process;
• The license application processing time has been increased from 30 to 60 days with an option to extend it to 120 days;
• The fee for applying for a license increased from €345 to €3 300;
• The authorized capital was increased from €2 500 to €12 000. It is not necessary to pay in digital currency; you can do so in real money by bank transfer or in cash. The amount must be in the account before applying for a license.

How to get a cryptocurrency license in Estonia

The application can be submitted online through an e-residency card, local notary, and our company representative in Estonia. Application is checked by the Estonian Financial Intelligence Unit (FIU). The license is issued indefinitely and does not require renewal.

In order for the regulator to issue a cryptocurrency license in Estonia, an organization must meet the following requirements:

• Open a physical office and specify a web page;
• The board must be located in Estonia;
• Hire a local management team and compliance specialists;
• Submit copies of passports, phone numbers, addresses, and resumes of company owners. Among the directors, there must be a resident of Estonia;
• Show a certificate of no criminal record for all company members, regardless of their citizenship;
• Make a detailed business plan;
• Provide documents of the contact person;
• Paperwork should be translated into English, notarized, and apostilled.

Opening a corporate account

In order to get a company license, you must open a corporate bank account in Estonia. It is difficult to do, as Estonian banks do not want to work with high-risk businesses. Alternatively, you can open an account with a non-EEA-registered bank. To make the procedure fast, contact IT-OFFSHORE specialists.