Cryptocurrency Regulations in Estonia - What to Know?
Cryptocurrencies are not legal tender, but there are no restrictions on the trade of digital currencies. The cryptocurrency exchanges are legitimate and authorized by the government, but they have to comply with Estonia's Financial Intelligence Unit.
The Bitcoin regulation in Estonia are open & innovative, especially compared to most of the European nations. Although not a legal tender, Cryptocurrency is defined as "value represented in digital form." The Estonian government has classified the electronic currency as a digital asset for tax purposes, not subjected to VAT. In the year 2017, Estonia's government introduced a new bill "Anti Money Laundering and Terrorism Finance Act" to regulate cryptocurrency businesses operating in the country.
Cryptocurrency Exchanges in Estonia
The exchanges in Estonia have the license to operate. According to the 2017 AML/CFT legislation, they need to work in a well-defined regulatory framework, which includes aspects such as KYC rules and regular reporting. In the current legislation, crypto exchanges have to obtain a single to operate as an exchange portal and offer wallet services. The Estonian Financial Intelligence Unit issues this license. The process of obtaining the crypto license is online, and it generally tackles 30 days to get the approval.
The license application is filed online using your e-residency card; you don't have to take a flight to Estonia. There is a state fee associated with getting this license, and it is 3300 Euros. The license application fee needs to be paid to the Estonian Ministry of Finance. The Anti-Money Laundering Data Office is responsible for making the final decision whether to issue the license. Generally, the odds of obtaining the license is quite high if you've adhered to all the necessary criteria.
The documents needed for the cryptocurrency exchange include contact details of your business and details of all the board members of the company. The company applying for the crypto license needs to have an office in Estonia. For applying for the license, it is necessary to have a representative in Estonia.
Our panel of business analysts will assist you with the entire process of obtaining the country's crypto exchange. We'll provide you with the right information, right from how Bitcoin regulation in Estonia, paperwork to the filling of the application.
There are initiatives taken by the Estonian government to make digital currency a part of their financial infrastructure. There is also speculation that Estonia will be launching its very own Cryptocurrency known as estcoin. After a lot of criticism from the European Union's member nations, such a plan was put to hold. In the years, no stringent regulations are happening over the flow of digital currencies throughout the country. However, the guidelines would become strict for better regulation.
Let's Wrap Up
At last, if you have doubts or queries regarding starting your cryptocurrency-related business in Estonia, reach out to our Estonia market analysts; they are ready to answer you.