Cryptocurrency Regulation in Estonia

Nothing attracts an entrepreneur more than the speed and cost of launching a cryptocurrency project, and there is no doubt that at the moment on the world stage in Estonia such projects can be implemented faster and cheaper than anywhere else. Only one cryptocurrency license is required to legalise any crypto-activity in Estonia. This strengthens its position among the most preferred jurisdictions to launch a crypto-project.

A Member of the company’s Board can apply for a cryptocurrency license in Estonia. An application for a license can be submitted electronically with an e-resident card, when visiting a notary in Tallinn, or by issuing a power of attorney to a representative of Company in Estonia OÜ, so that our lawyer can submit the application for you.

The state fee for an application for a license is 3,300 EUR. The fee must be paid to the Estonian Ministry of Finance (FIU). The issue of a license is decided by the Rahapesu andmebüroo (RAB) within 60 working days after the application is submitted.

Requirements for Companies Applying
for an Estonian Crypto-License in 2021

In connection with the Money Laundering and Terrorist Financing Prevention Act, amendments have been made to establish stricter boundaries for companies applying for an Estonian cryptocurrency license.

  • The minimum share capital of a crypto-company is 12,000 EUR and its deposit before applying for a crypto-license is mandatory. This amount can be further used to finance the commercial activities of the company.

Payment of the share capital is made by means of a cash contribution – by bank transfer from the personal account of the Owner/s of the company in shares of the corresponding to the par value of the share. You can deposit the share capital for a cryptocurrency company only with a cash contribution (not cryptocurrency) from the personal account of the Owner/s to the corporate account. The Members of the Board of Directors pay a contribution equal to the par value of their share (i.e. corresponding to their share in the share capital).

  • The state fee payable to the Estonian government is 3,300 EUR.
  • A corporate IBAN account is required before applying. Estonian banks do not accept applications for opening a bank account from crypto+companies, however, it is possible to open an account with one of the European Providers of Cross-Border e-Money Services registered in Estonia.
  • The Management Board and the place of business must be located in Estonia.
  • The company applying for the license must have a legal address in Estonia. The physical office can be visited by the Regulator at any time to check the documentation and confirm the firm’s activities. The physical office of a crypto-company must be located in Estonia and correspond to the company’s activities.
  • The presence of the Director (an Estonian citizen) of the company is mandatory. The Director of the company must be a resident of Estonia and reside in Estonia.
  • When applying for a single cryptocurrency license, a local KYC/AML Officer is required for an Estonian company. After applying for a crypto-license, the KYC/AML Officer will have to undergo an interview with the RAB to confirm their skills and suitability for the position.

Company in Estonia OÜ can help you find and hire an Estonian Director for your company and train them in client identification requirements under the Money Laundering and Terrorist Financing Prevention Act. It should be noted that the chosen Director will only be a member of your company and will represent it in communication with the Regulator.

Required documents for applying for a crypto-license in Estonia:

  1. Identification of clients – requirements for the provision of documents, source of wealth, proof of address of residence.
  2. Means of verification of documents provided by clients.
  3. Verification of the validity of documents of individuals.
  4. Requirements for the storage of documents provided by clients.
  1. Compliance monitoring and internal audit
  2. Measures of diligence
  3. Obligations of notification
  1. Determining the level of risk
  2. Classification of risks
  3. Nationality
  4. Procedure for controlling transactions
  5. Origin of funds

 

Taking into account the needs of customers from all over the world, Company in Estonia OÜ has developed an all-in-one offerCompany & Crypto-License in Estonia”, which includes registration of an Estonian company plus all the necessary services for obtaining a single crypto-license.

Company in Estonia OÜ offers a wide range of additional services, such as assistance in selection and rental of an office; assistance in making company share capital contribution; assistance in recruiting a local Company Director, signing a working contracttraining of a Company Director for KYC/AML requirements; as well as KYC/AML Officer services.

An individual customer approach is vital for us. We take care of your business needs, combining personalised order processing and professional consulting, reasonable rates, and company registration services for clients from all over the world. In addition, Company in Estonia OÜ provides continuous support to entrepreneurs in accordance with the latest updates in Estonian legislation.

 

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