Estonia is one of the first jurisdictions in the EU where cryptocurrency licences have become widespread.
One of our offices is located in Tallinn city, and we actively help our clients in obtaining and adapting crypto licenses issued by Estonian regulator.
We are ready to carry out a detailed consultation and prepare all the necessary documents.
Due to the new regulations regarding cryptolicense in Estonia, a company that meets all the necessary Estonian requirements for this licence will be protected from all sorts of checks for suspicion of money laundering and possible closure of the company, as it is regulated by the Estonian AML legislation on a par with financial institutions.
A clear example of low taxation is the zero percent corporate income tax. Thus, this profit can be invested in the development of the company, which is ideal for a start-up business. As for turnover tax (VAT), it should be noted that bitcoins and altcoins will not be subject to this tax. Estonia has the lowest and most affordable prices for cryptocurrency licences compared to other EU countries.
Estonia is known to be a leader in internet technology, which has been developing more and more in recent years. This achievement makes it possible to open access to all government services, which in turn makes communication with government organisations easier and saves You time.
If you are interested in getting a crypto license in Estonia, where cryptocurrency is legalised and protected, and where cryptocurrency businesses are regulated like financial institutions at the legislative level, do not hesitate to contact our specialists for help!
Submit an application Beantragen| Crypto licence for the exchange and custody of securities | Licensing of additional cryptocurrency-related services, including: | Investment crypto-fund registration | Legal support for ICO/IEO projects | Preparing a legal opinion |
|---|---|---|---|---|
| Managing an online cryptocurrency exchange platform | Escrow service | Capital management up to €500 million | Project research | Internal audit of the client’s project |
| Exchange between cryptocurrency and fiat currency pairs | Loans in virtual currency backed by fiat currency | Attracting non-professional (retail) investors | Advice on token solutions | Exploring suitable legislation in relation to the project |
| Cryptocurrency storage service | Stacking | Cryptocurrency portfolio management | Recommendations on the choice of jurisdiction | Legal opinion/legal analysis of the case |
| Cryptocurrency transfer | NFT digital art auction | Complete anonymity of fund investor data | Preparation of supporting legal documents | |
| Investment support (provision of trading signals) | Financial liability of investors is limited to the amount of their contribution | |||
| Coordination of financial transactions involving cryptocurrency |
Before the strengthening of requirements for cryptocurrency businesses, it was easy to obtain a cryptocurrency licence in Estonia in a short period of time, with crypto-assets that could be handled from anywhere in the world. This favourable and easy registration environment for cryptocurrency companies has triggered their rapid growth, which in turn has increased industry risks and led to stricter regulations for cryptocurrency licences, applying the Resolution on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT).
Another main reason for this strengthening of regulations was the discovery of suspicious transfers amounting to more than a hundred billion dollars in one Estonian branch of a Danish bank called Danske Bank. There are now only about 400 licensed cryptocurrency companies in Estonia. For this reason, it is very important to have the right kind of help for starting a cryptocurrency business, which is exactly what our company Adam Smith can provide.
Due to the updated regulations regarding cryptocurrencies, all necessary documents for cryptocurrency licences must now be submitted either to a notary’s office or through the Commercial Register website, the review process has lengthened twice and is now 120 days instead of 60 as it was before.
As for having a physical office, this is currently a necessary requirement for obtaining a crypto licence. In turn, this office presence can improve management and control of the company, as well as protect the assets and rights of clients.
For cryptocurrency companies in Estonia, the mandatory requirement is that at least one general manager of the company is an Estonian resident.
In order to obtain a cryptocurrency licence, the regulator requires an account to be opened with a European payment system or bank. However, this process often requires skilled legal assistance, which our firm Adam Smith can offer; we will find the best banks to open a bank account for your cryptocurrency business.
The share capital for obtaining a crypto licence is currently equal to €100,000 or €250,000. It is also important to note that since 2022, the state fee for a crypto licence has been changed to €10,000, from just €3,300 before the regulations change.
Also, another change is that all members of the company must have a spotless reputation without any criminal record or involvement in fraud. Along with this, all members of the company will also be required to present non-conviction certificates. This can also be confirmed by the fact that with the introduction of new regulations concerning cryptocurrency activities, these services have become subject to regulation by the Estonian AML legislation, which previously applied to financial institutions only.
| NAME OF THE SERVICE | PRICES |
|---|---|
| AML audit | by agreement |
| Financial audit | by agreement |
For adaptation of the cryptocurrency licence under new regulations please contact with our lawyer
Thus, the above legislative changes in relation to cryptolicence show a general picture of the new requirements in the conduct of this kind of business. However, it is important to understand that introducing such stricter requirements is a significant market advantage, as at the moment cryptocurrency activity in Estonia is controlled in the same way as fiat money.
So we can say that cryptocurrencies have been equated with alternative means of payment, unlike in many other countries where cryptocurrencies are still not regulated by the state and anyone who starts a business in such places risks having it shut down due to suspicion of money laundering or other similar frauds. It can also be noted that Estonia is still the most attractive country for setting up a cryptocurrency business, despite the recent change in legislation.
| Country of cryptocurrency jurisdiction | Estonia | Lithuania |
|---|---|---|
| Approximate timeframes | 4-6 months | 1-2 months |
| Share capital | €100.000 or €250.000 | €125.000 |
| Company registration cost | €1100 | €1200 |
| Corporate tax | 0% | 5% (annual gross income is less than 300 000 EUR) and 15% (annual gross income is more than 300 000 EUR) |
If you are interested in getting a crypto license in Estonia, where cryptocurrency is legalised and protected, and where cryptocurrency businesses are regulated like financial institutions at the legislative level, do not hesitate to contact our specialists for help!
Submit an applicationA global leader in digital innovation, Estonia was the first country that introduced crypto licensing. Nowadays the Estonian crypto license requires a live structure in the country with several requirements, such as a physical office and an AML specialist.
Timeframe: 8 weeks
One-time fee: 15 000 EUR
A European Economic Area jurisdiction that is very supportive of cryptocurrency and has a large number of registered EMIs and operating within its borders. It also has stable legislation close to upcoming amendments to MiCA regulations.
Timeframe: 3 weeks
One-time fee: 3 500 EUR
Our specialists are ready to provide you with business consulting services. We will carry out a full analysis of your company business processes, find the weakspots and the quickest and most appropriate solutions to eliminate them.
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