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Cryptocurrency Regulation in Estonia - What You Need to Know?

Cryptocurrency Regulation in Estonia - What You Need to Know?

The Estonian government has an open & inventive approach when it comes to the regulation of the digital currencies in the country. Although Bitcoin isn’t a legal tender in the country, no bill thwarts the trade of Bitcoin exchange throughout this Baltic nation. In fact, proper licenses are issued by the Estonian government to crypto exchange portals and crypto wallet service providers. In the year 2017, the Estonian parliament passed the Anti Money Laundering and Terrorism Finance Act, which somewhat tighten the cryptocurrency regulation in Estonia for businesses linked with the digital currencies.

Exchanges Now, coming to the most crucial aspect of Bitcoin regulation in Estonia, are the exchanges legal? Yes, they are completely legal to operate; however, if you want to set up a crypto exchange, you must obtain a proper license. After the 2017 AML/CFT legislation, the cryptocurrency exchanges in the country have to run with a well-defined framework, including adhering to the strict KYC policies. There are two types of exchanges in the country; one is the country issued by FIU. One is to start a crypto exchange portal or website in Estonia, and the other is to offer digital wallet service.

Anyone can apply for a license and set up their cryptocurrency business here in Estonia. The necessary documents needed for the same is providing proof of criminal record in your country, personal data, and your complete curriculum vitae. Most importantly, you must be an e-resident of the country. You can enroll for the e-residency program online and don’t have to take a flight to Estonia for this purpose. You can collect an e-resident ID card from an authorized center in your area.

After that register your company and then apply for the license, you must provide documents such as AML and KYC policies.

Future Plans

With Estonia’s favorable policy on the digital currency, the future looks bright for cryptocurrencies in Estonia. Even there are talks that the country will release its own cryptocurrency; however, after the objection of the other members of the European Union, the government has taken some steps back. On the broader viewpoint, Bitcoin or any other currency startups can invest big money in Estonia without fear as there are no government plans to restrict the flow of electronic currencies in their country. At the same time, you can expect the Bitcoin regulation in Estonia to get tougher than ever, as the country takes measures to combat the anti-money laundering activities in their territories.

In case you’re planning to set up your cryptocurrency-related startup in Estonia or expand your crypto services to this Baltic nation, you can always consult our business analysts in Estonia to provide an honest piece of advice on your business idea. Our consultants have heaps of experience and extensive knowledge behind their back to help you translate your business vision into reality. Also, leave your opinion on Bitcoin regulation in Estonia in the below comment section!

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