Estonia is one of the few countries that is ahead of the rest of the world in technology development and in doing business. Having raised the issue of cryptocurrency, we were once again convinced that the choice of our clients, Estonia, as a jurisdiction for wide opportunities, is fully justified.
Below we describe a small guide on how an entrepreneur from Ukraine can start a business using cryptocurrency in friendly Estonia.
How to get crypto licensing?
The first step for a company that plans to conduct operations with cryptocurrencies in Estonia is to apply for a license in accordance with the Law on Combating Money Laundering and Financing of Terrorism adopted on January 28, 2017.
Currently, there are 2 types of licenses for operations with cryptocurrency in Estonia:
- Activities related to the exchange of cryptocurrency. The license allows you to exchange fiduciary money for cryptocurrency and vice versa.
- Providing a virtual wallet service. This is a service in which the wallet service provider creates or holds (has access to) the wallet key, but the funds belong to the user, not the service provider.
Such licenses are issued for an indefinite period, and they can be obtained from the Estonian Money Laundering Data Bureau.
The owner of the aforementioned licenses automatically receives the right to provide services for the exchange, circulation, transfer and storage of virtual values, including cryptocurrencies, to their clients from all over the world, either directly in the representation of their company, or remotely using digital channels of information transfer, cash and virtual values.
Everything seems is simple and clear?
But now let us examine in more detail how to obtain such a license to conduct cryptobusiness:
- Register a company in Estonia
- order and provide the Original of the Certificate of no criminal record for all Company members (shareholders, members of the board of directors, contact person) and notarized copies of their passports
- Provide a CV of key persons, a description of the business activity and a company website.
- Provide AML with company rules and regulations on countering terrorist financing developed in accordance with relevant legislation.
- Assign a compliance officer and the person responsible for the imposition of international financial sanctions. This may be one person for whom you also need to submit a package of documents.
- Pay a state fee of 345 Euros
- Wait for the decision to be made within 30 days
That’s all. Having passed all the above stages, most likely your company will receive a license to work with cryptocurrency. But it is important to always keep your finger on the pulse. Although Estonia is a country of possibilities, the local authorities control everything and everywhere and like to make interesting changes to the laws.
If you have any questions or need advice on obtaining a cryptographic license – write to us by clicking on the button below.