How to Get License for Estonia Crypto Exchange?
Updated: Jan 8, 2020
Setting up a cryptocurrency business has proved to be attractive in the last few years, but there are still restrictions & regulations over the cryptocurrency industry in different parts of the world. Entrepreneurs those planning to start a cryptocurrency exchange find it difficult to breathe life into their venture, as there is no cryptocurrency exchange license. This is where Estonia, a small North European country has established itself as a premier fintech hub in Europe. Estonia is one of Europe's most technologically-advanced countries where the government services are digitized to its residents. Estonia let the non-citizen of the country to easily obtain the E-residency identity card to open a company remotely here, and also have access to the different government services even when you are many miles away.
Estonia has always encouraged foreign investors in Blockchain technology, companies can easily set up their business. Estonia is the first member of the European nation where the trade of digital tokens is legalized.
Licensing Requirements to Setup a Cryptocurrency Exchange in Estonia
Companies that considering establishing an Estonia crypto exchange need to know that there are two kinds of cryptocurrency licenses to obtain.
A cryptocurrency exchange license lets a company offer cryptocurrency trading services against fiat currencies or other cryptocurrencies. The second type of the Estonia crypto license is the wallet service, this license allows companies to provide cryptocurrency e-wallet facility to their clients. Other types of cryptocurrency businesses like mining can be operative in Estonia, but they must not be involved in the trading of digital assets, no special license is needed.
How to Obtain Cryptocurrency License In Estonia?
To complete the procedure of the cryptocurrency company formation in Estonia, the next step is the registration of your business in Estonia. Then, pick a business name that will be verified by the government authority for availability.
The application to obtain the exchange license must be filed with the Financial Supervisory Authority via the Estonia Financial Intelligence. The document requirements include the certificate of incorporation, along with the KYC details and the documentation for risk assessment.
The application submitted for the license has to be reviewed by the Estonia Financial Unit and doesn’t take more than 30 days. Generally, the cryptocurrency license takes two weeks to be issued, and the company must start its operation within six months of the issuing of the company’s license.
From the above, it is easy to deduce that how come Estonia has established its robustness as one amongst the most secure and lucrative nations to start a cryptocurrency exchange. The legalized mechanism of Estonia lets people straightforward set up a business with no obstacles in the way.