estonia

How to order a crypto license in Estonia

Obtaining a crypto license in Estonia is crucial for entrepreneurs looking to engage in cryptocurrency and blockchain activities. Failure to do so can result in significant fines and reputational damage. Our company specializes in providing a seamless and hassle-free experience for clients seeking to obtain a crypto wallet license in Estonia.

Our team of top experts will guide you through the entire application process, taking into account up-to-date requirements and best practices. Contact us today for a free consultation and get a prompt response within 24 hours. Trust us to navigate the regulatory landscape and get your crypto license in Estonia in no time.

Actual Estonia’s Cryptocurrency License Requirements in 2023

Estonia’s crypto license requirements have been recently updated following amendments to the Money Laundering and Terrorism Financing Prevention Act in March 2020. Companies seeking licenses now face higher costs and a more time-consuming registration process. Some of the new requirements include the following:

• A minimum share capital of €12,000. It is due before obtaining the license.
• Opening of a company account with a European bank or payment system.
• Presence of a local compliance officer.
• Every company member must have higher education. 
• The company must have an office in Estonia, which can’t be virtual.
• The cost of obtaining a license has increased due to the higher state duty fee of €3,300. 
• The company must have an Esonian director, or they must have an Estonian resident visa.

Companies that obtained licenses before March 10, 2020, must comply with the new requirements by July 1, 2020.

Crypto Market’s Regulation in Estonia

The country has established a licensing framework to regulate the cryptocurrency market, including two licenses:

• one for crypto exchanges;
• for crypto wallet and custodial services. 

The Office for Countering Money Laundering is the main regulatory body responsible for issuing licenses. Information about licensed organizations is available through the electronic Estonian Business Register. It provides numerous details, including the license number and the designated person responsible for complying with financial regulations.

The Estonian Financial Supervision Authority oversees the cryptocurrency market and prevents money laundering. It can issue orders to organizations to implement transaction controls and customer identification measures to reduce the risk of money laundering.

Documents

To obtain a cryptocurrency license, companies must:

• Submit an application. 
• Provide their rules for combating money laundering and financing terrorism, including customer identification principles and transaction risk analysis methods. The application must also outline how the company will interact with regulatory bodies and organize data storage and exchange. 
• An algorithm of actions in case international sanctions are imposed against a client.
• A certificate of absence of previous convictions for members of the management board, beneficiaries, and other officials. The document must be issued by the above-mentioned authorities’ home countries and translated into Estonian.

Obtaining an Estonian crypto license typically takes 30 days, but it may take longer if additional questions arise while reviewing the submitted documents. 

To comply with regulatory guidelines and obtain a license, the business must also develop procedural documentation, such as anti-money laundering (AML) policies, terms and conditions, and know-your-customer (KYC) protocols.

Due to its progressive legislation, Estonia has emerged as a favorable destination for virtual currency endeavors. As a result, the country earned a reputation as a «cryptocurrency haven» in a short period.

As the first EU country to regulate cryptocurrency companies, Estonia has drawn various businesses, including exchanges and exchangers. Many of them opened physical offices in Estonia in the past five years. 

Over 2,000 enterprises obtained crypto licenses, cementing Estonia’s reputation as a driving force of progress in the crypto-related field.

According to Estonian legislation, cryptocurrency is an alternative payment method suitable under specific conditions. Cryptocurrency must be used for account management and monetary obligations, with a defined value that can be exchanged for fiat money and vice versa at any moment.