Estonia is one of the leading destinations for crypto businesses, providing a suitable environment for investors and entrepreneurs alike. With its attractive tax policies and e-residency services, the country presents many exciting opportunities for everyone looking to venture into the cryptocurrency world.
Whether you want to run an exchange platform or start a crypto company, getting an Estonia crypto license in the country is one of the strategic moves that propel businesses to a new height.
Table of Contents
What a Cryptocurrency License Is
It is a license that the Estonian FIU issues to allow entities to operate in the country’s blockchain and cryptocurrency space. Similar to business licenses, it can be used to monitor and regulate your crypto-related company.
A crypto license holder is a crucial part of the Estonia system as it helps set regulatory frameworks to shape the future of crypto use. This benefits businesses and consumers since the framework will be more informed and educated.
Why Run Crypto Business in the Country
Estonia provides a supportive environment for cryptocurrency businesses because of its innovative digital infrastructure and regulatory framework.
Estonia’s e-residency programs enable entrepreneurs globally to manage and establish businesses remotely. The country’s transparent tax policies make it one of the preferred destinations for crypto and blockchain businesses. Here are more benefits of running a crypto business in the country:
- Reputation: Having a license in the country improves your global credibility in the crypto market.
- Streamlined licensing process: The country’s straightforward regulatory framework minimises bureaucratic challenges.
Registering and Obtaining a License in the Country
All business cases registering cryptocurrency licenses in the country are linked to passing this registration procedure. To get your license in Estonia, you must do the following:
1. Gather Documentation
The process starts with gathering all the required documentation, including proof of address and a passport. As a client, you must provide three company names that you prefer. The Centre of Registers will reserve and verify these names. Afterwards, a business model prescription is prepared, and the PoA (Power of Attorney) is set for legalisation and notarisation.
2. OU Company Registration
OU registration is either formed with a physical presence or remotely. This often includes contributing a share capital of 100k EUR and opening a business bank account. The notary confirms the process, and the business activities register as Virtual Asset Service Providers.
3. Internal Policies & HR Services
Compliance is usually addressed through data collection, verification principles, and due diligence measures. Individual CFT/KYC/AML policies are often prepared, and support is given for finding physical offices with lease agreements.
4. Application Submission
An application form is often filled out and submitted to RAB (Financial Intelligence Unit). Every requirement is confirmed and reviewed before submitting applications for a license in the country.
5. Operational Launch
Cryptocurrency operations start within the country’s regulatory framework. Normally, ongoing support is offered in drafting, HR services, notarisation, tax consulting, and accounting services.
In conclusion, Estonia is now one of the favourite destinations for crypto licensing in the EU, considering its strong and business-friendly regulatory framework. With an Estonia crypto license, your business can navigate the process and serve your clients more efficiently.
