Virtual Currency Licence in Estonia

There are many ways to obtain virtual currency, including digitized, stored, sold, and accepted as a form of payment by individuals and institutions.

A fast-growing trend in cryptocurrency has taken over the global economy. Cryptocurrency investments are still beneficial, despite the debates over its fragility.

Due to its reliability, accessibility, and independence, cryptocurrency surpasses traditional payment methods. Cryptocurrencies can also be used as a modern method of earning money in addition to allowing enterprises to invest.

There are several reasons why investors from around the world invest in the Estonian cryptocurrency market. Estonian law provides certain advantages to cryptocurrency businesses. The following are among them:

  • The work is fully legal
  • Government regulation contributes to credibility and stability
  • The tax system should be transparent
  • A market brimming with enthusiasm
  • Online applications are available for all applications

Estonia also does not impose a corporate tax. A 20% corporate income tax applies to only distributed profits of 20/80 of the net profit distribution. The Estonian tax system allows companies to reinvest profits tax-free, so they are able to benefit from a tax-free investment scheme.


As a result of Directive No. 2015/849 adopted by the European Parliament and Council, the Republic of Estonia entered into force a new Law on Money Laundering and Terror Financing on November 27, 2017. Companies are permitted to provide customers with exchange, transfer, and storage services of crypto and virtual currencies with the following licences:

  1. Fiat-to-virtual currency exchange license for the provider
  2. Service provider’s license for virtual currency wallets

Fiat currency can be exchanged for cryptocurrency and vice versa with the first type of licence. Virtual currency e-wallets are allowed under the second license.

Virtual currency service providers will, however, be regarded as “financial institutions” as of March 10, 2020. A virtual currency service provider license was thus created by merging both licenses. All Estonian financial institutions must comply with the same reporting rules and regulations as crypto companies.


Cryptocurrency licenses can be applied for by members of the company’s Board of Directors. License applications can be submitted electronically with an e-Resident card at a notary in Tallinn or through our representatives who will be able to apply on your behalf using the power of attorney you provide us.

Applicants for a cryptocurrency license must pay a fee of 3,300 EUR. Payment is required to be made to the Estonian Ministry of Finance (FIU). Upon submission of an application, the Bureau of Data decides whether the Money Laundering (RAB) license will be granted within 60 working days. The ease of the process does not mean that the regulations are not taken seriously.

As a result of recent amendments to the Money Laundering and Terrorist Financing Prevention Act, companies applying for Estonian crypto-licences have been required to meet the following stricter parameters:

  • Before applying for a crypto-licence, a crypto-company must pay its full share capital of 12,000 EUR. Besides financing the company’s commercial activities, this amount can be used to finance its other activities as well.
  • It costs 3,300 euros to register with the Estonian government.
  • Applicants must have corporate IBAN accounts. Crypto-companies cannot open bank accounts with Estonian banks. The European Electronic Money Institution, however, allows companies to open accounts.
  • An Estonian Management Board is required, as well as an Estonian location for the business.
  • Estonian legal offices are required for companies applying for licenses.
  • Estonian citizens are required to serve as Company Directors.
  • An interview with a RAB will be required after the KYC/AML officer has applied for a crypto-licence.


Opening a bank account is a major challenge for crypto-enterprises. In Estonia, it is not possible to open a bank account because no Estonian bank works with high-risk companies (Crypto, Gambling, Gaming, CBD, Adults). Crypto-businesses are under stringent supervision as quite often their owners tend to run fraud operations and break the law by, for example, sponsoring terrorism.

More and more cryptocurrency businesses continue to develop and emerge, despite traditional banking institutions’ slow adaptation to virtual currencies’ contemporary world reality. Getting a banking account is an important step for any crypto company since it is required to operate, serve customers, and receive payments.

Additionally, companies in high-risk industries require more expense and complexity to open and maintain accounts than companies in other industries. Document collection and compliance with regulations are the most challenging parts of the process.

When it comes to crypto businesses, which face a higher level of risk, risk assessment is also important, as it helps prevent unexpected problems. A risk assessment and a detailed market overview can be obtained by consulting professionals.

We will work with you to determine the most suitable and profitable crypto-company solution and save you money and time. After analysing many banks and payment service providers, we found the best options for high-risk businesses to open an account. As an Estonian law firm and accounting firm, we offer a range of services.

Getting a cryptocurrency license from LKS Consult OÜ will be easy with the help of our specialists. We offer an all-inclusive package called Company & Crypto-Licence in Estonia based on customers’ needs from around the world, which includes the registration of an Estonian company and all the necessary services for obtaining a crypto-license. Assisting with:

  • Documentation preparation.
  • Establishing a company’s KYC and procedural rules.
  • Support during the entire license application process, including translation of documents into Estonian.