Estonia is a favourable and friendly country for various virtual currency-related activities. The country has gained a reputation as a “cryptocurrency haven” in a relatively short period thanks to its progressive legislation.
Estonia is the first country in the EU to regulate cryptocurrency companies. In the last 5 years, many crypto-businesses have opened physical offices in the country, and Estonia is now home to dozens of virtual currency service providers.
Despite the most recent legislative changes in 2021, the Estonian cryptocurrency license is affordable compared to other countries. After all, the legislation’s demanding nature is not a disadvantage but a significant market advantage.
Estonian Virtual Currency Service Providers are allowed to perform two main types of activities:
- Crypto exchange: to offer the service of exchanging digital currency into FIAT or vice versa and cryptocurrency into cryptocurrency for a fee.
- Crypto wallet and custodial services: to maintain cold and online wallets for cryptocurrency storage, create encrypted keys, as well as their storage.
General requirements
- The shareholders must have an impeccable business reputation
- The members of the board must have an impeccable business reputation, along with the education, experience and professional qualifications necessary to manage a Virtual Currency Service Provider
- Permanent establishment in the country
- Compliance with the anti-money laundering and counter-terrorist financing law and regulations
- Compliance with the GDPR
- Internal and external auditing
- Minimum share capital: from EUR 100.000 to EUR 250.000, depending on the services offered.
Passporting / Operating abroad
Estonian Virtual Currency Service Providers do not have the right to provide services outside the country.
Timeframe
The time to obtain a license varies. In any case, the decision on the application for a Virtual Currency Service Provider is made in 60–120 business days.