Crypto license in Estonia
Support in the issuance of Estonia crypto license with a guarantee of a turnkey contract.
Estonia is a favorable and friendly country for various virtual currency-related activities. In a relatively short period, the country has gained a reputation as a "cryptocurrency haven" thanks to its progressive legislation. It is the first country in the EU to regulate cryptocurrency companies. In the last 5 years, many entrepreneurs, exchanges, and exchangers have opened physical offices in the country, and more than 2,000 businesses have received a cryptocurrency license.
Most entrepreneurs choose Estonia for crypto-related business activities, IEOs, ICOs, IDOs, moreover, they scale their businesses here. The number of active entrepreneurs is growing steadily. Despite legislative changes in 2021, the Estonian cryptocurrency license is affordable compared to other countries. After all, the demanding nature of the legislation is not even a disadvantage, but a significant market advantage. Today, virtual currencies are controlled exactly like fiat money. They have been legalized and put on a par with alternative means of payment, which is an advantage compared to countries where cryptocurrencies operate in a “gray area”. Estonia has been recognized as an alternative to jurisdictions in Malta and Switzerland due to its favorable legal environment for regulating cryptocurrency activities, attractive tax policies, and reduced licensing costs.
Estonia crypto license requirements
According to the latest amendment to the Anti-Money Laundering and Counter-Terrorist Financing Act, all operating crypto businesses, as well as those applying for a license, must provide the regulator with all necessary documentation, open a physical office and provide local management. A license for a virtual value service provider is issued by the Estonian Financial Intelligence Unit (FIU). The company data, the license number, and information about the person in charge of monitoring compliance with the requirements are publicly available in the electronic version of the register. Once registered, a crypto company is granted Financial Institution (FI) status. Following the introduction of the new legislation, several types of licenses have merged into one called "Virtual Asset Service Provider". It covers the following types of cryptocurrency activities:
Crypto exchange
Allows the firm to exchange digital currency into FIAT or vice versa, as well as cryptocurrency into cryptocurrency for a fee.
Crypto wallet and custodial services
Maintenance of cold and online wallets for cryptocurrency storage, creation of encrypted client keys, as well as for their storage.
Please note: the Estonian Ministry of Finance submitted for discussion a draft law on changes to the legislation on virtual asset operations. It is expected that the ability to conduct operations will become stricter in the coming months (e.g., increasing the share capital to 100-250 thousand euros; requirements for a sworn auditor, etc.).
Procedure for obtaining a Crypto License in Estonia
After 5 months (approx.) license will be obtained and another 2-3 weeks will be required for the license holder to be fully operative
Stage 1
Company registration
Result: The company is registered. Local director is assigned and employed to the company. Corporate account is open.
Collecting preliminary set of the documents from the Client side:
- An up-to-date copy of the passport of the country of residence (scan)
- A business model of the company (brief description 1-2 A4 pages)
- Preferred company name is provided
- Budgets and scope of the project are approved according to the initial workshop
- Gofaizen & Sherle operational department has drafted PoA and shared it with the Client along with further steps
Company formation:
- Upon the documents (hard copies) receipt on hands by Estonian office, the sworn translation to Estonian language is conducted
- The notary deal is arranged and conducted; company entry appears in the commercial register after 5 days
- Set of corporate documents has been prepared
- Corporate account is open
- Client has transferred share capital to the company
Stage 2
Pre-licensing
Result: Company is in compliance with Estonian VASP requirements. AML/KYC policy is drafted and employees have prepared.
Preparation of legal, financial and IT documents (non exhaustive list)
- Description of the company structure
- Compliance documentation (AML/KYC/KYT)
- Business plan, financial documentation and forecasts
- Description of technical solutions used
- Internal control procedures
Establishing relationship with partners and employees
- Hiring an AML Officer and other employees
- Finding premises and concluding a rental agreement
- Concluding preliminary agreements with other partners (liquidity providers, KYC/KYT solutions, custody solutions, etc.)
- Staff training
Stage 3
Licensing
Result: The company has obtained VASP license and is ready for providing virtual currency services
Submitting application for the license
- Preparation of application
- Collection of additional documentation as required by the regulator
- Establishing contact with regulator
Support in licensing process
- Negotiations with the regulator
- Clarification of business model and policies established
- Documents amendment and providing of additional information
Stage 4
MAINTENANCE
Result: All the necessary arrangements for the company are completed; VASP license holder fully operative.
This stage is necessary to support and maintain the structure and may include:
- Full set of notarised corporate documents (Register Card, AoA, MoA) for account opening
- Internal Control services
- Accountant with experience in crypto field
- Assistance with customers complaints
- Audit of AML/KYC procedures
- Employees periodic training
- Representation when supervision by regulator
- Preparation of legal opinions
A comprehensive and tailored approach
Gofaizen & Sherle provides comprehensive services under one roof, allowing clients to plan and prioritize their chosen strategy in a very short time and with limited resources. We offer a wide range of services, including consultancy, legal services, and company formation, which focus on the optimal implementation of business strategies.
Versatile experience
You will receive legal and management consultancy services of the highest caliber, thanks to the many years of experience of our highly qualified professionals. Each client receives comprehensive assistance with business development and support. Every task is tailored to the client's needs, the specifics of the business and the legislation of the particular country.
Long-term partnerships
Our company establishes a relationship of trust and long-term commitment with our customers. An indication of Gofaizen & Sherle's high level of service is the cooperation with our customers on an ongoing basis.
A comprehensive and tailored approach
Gofaizen & Sherle provides comprehensive services under one roof, allowing clients to plan and prioritize their chosen strategy in a very short time and with limited resources. We offer a wide range of services, including consultancy, legal services, and company formation, which focus on the optimal implementation of business strategies.
Versatile experience
You will receive legal and management consultancy services of the highest caliber, thanks to the many years of experience of our highly qualified professionals. Each client receives comprehensive assistance with business development and support. Every task is tailored to the client's needs, the specifics of the business and the legislation of the particular country.
Long-term partnerships
Our company establishes a relationship of trust and long-term commitment with our customers. An indication of Gofaizen & Sherle's high level of service is the cooperation with our customers on an ongoing basis.
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