Crypto License in Estonia - What to Know Before Obtaining It
Estonia is one of Europe’s most regulated markets when it comes to the cryptocurrency industry, but the process of setting up a crypto business is relatively easy & safe. Even though cryptocurrency is not a legal tender in Estonia, at the same, it is not illegal.
Registering a Crypto-Related Company in Estonia
To register a cryptocurrency business in Estonia, you need to select a commercial name and then, it has to be verified for availability. The next step is to get the VAT number. The entire procedure of registering a crypto company is simple and fast.
Crypto License in Estonia - All You Need To Know
Here, in this blog post, we’ll guide you with the process of obtaining one or both the cryptocurrency licenses.
The Two Types of Cryptocurrency Licenses in Estonia:
If you want to launch a dedicated website or App that lets people exchange their fiat currency into digital currency and vice versa, then you’ve to obtain the crypto exchange license.
Virtual Wallet Service
If you are considering creating a website or App that offers your customers the facility to store their digital currency, then you are required to file for the virtual wallet service license.
Each crypto license in Estonia is issued by the Estonian Financial Intelligence Unit. The FUI has every right to refuse to issue the crypto license, in a scenario when the documents are insufficient. Another popular reason for dismissing the license application is because of the criminal record of the individual in his/her country. So, before submitting your crypto license in Estonia, then you gotta make sure that the Estonian FUI requirements are met.
The company holding the cryptocurrency licence acts as a financial institution, therefore, not liable to any corporate tax nor any special share capital. The Estonian Financial Intelligence Unit will conduct the necessary inquiries, and you are required to provide all the information in detail, otherwise, your application may get rejected.
To get one or both the crypto licenses, you require to have a company registered in Estonia and provide the valid documents needed. Ideally, it is recommended that you set up an Estonian company, as the Estonian Financial Intelligence Unit is often not too keen on issuing the crypto license in Estonia to foreign entities.
Timeframe for Getting the License
Once you’ve submitted the documents along with the application to the FUI, it takes up to 30 days for your application to be reviewed. Generally, the time frame is quite less, and the license is issued in one or two weeks, right from start to finish.
If you’re interested in starting a cryptocurrency business and obtaining a license in Estonia, then it is best to reach out to us, as here we’re going to provide you with all the guidance needed to turn your company vision into a reality.