Crypto license in Estonia
Last Update: 13.11.2025
An Estonian crypto license is an effective way to legalize the activities of a crypto business within the EU legislation. The Gofaizen & Sherle provides comprehensive support in obtaining a cryptocurrency and crypto exchange license in Estonia. We will help your business comply with all requirements, including AML compliance, documentation preparation, risk analysis, and much more.
Estonia has long established itself as one of Europe’s most open and progressive jurisdictions for digital assets. It was the first country in the EU to introduce legal regulation of crypto activities, thereby providing companies with clear rules and a transparent regulatory environment. Thousands of cryptocurrency companies, including trading platforms, exchange services, and blockchain startups, have registered here in recent years.
The regulatory framework in Estonia is constantly improving. Despite the tightening of AML legislation and the gradual introduction of the requirements of the pan-European MiCA regulation, the country remains an attractive location for crypto entrepreneurs. Strict requirements do not deter but rather increase confidence in the jurisdiction and contribute to the creation of a stable and competitive crypto market.
Once crypto licensed in Estonia, a company can provide a wide range of services:
- cryptocurrency exchange;
- digital asset storage (crypto wallets);
- conducting transactions on behalf of clients;
- ICO/IDO/IEO support and other activities.
Thus, Estonia remains an attractive and reliable choice for those who want to conduct crypto business legally within the framework of European legislation.
Advantages of an Estonia crypto license
A jurisdiction with a high digital reputation
Estonia is one of the most technologically advanced countries in the world, with a developed e-government system, digital identification, and convenient online services. Company registration and licensing can be done entirely remotely thanks to the e-residency system.
Access to the EU market
Regulation in Estonia is fully compliant with MiCA requirements, ensuring compliance with pan-European standards. A crypto license obtained in Estonia is valid throughout the European Union, giving direct access to a market of over 500 million users without the need to register in other EU countries.
Universal license for crypto businesses
Estonia’s crypto license covers all key activities involving virtual assets. This simplifies legal support and reduces costs.
Transparent regulatory framework
The jurisdiction offers clear rules, which increase reliability and trust among partners and customers.
Affordable cost and no hidden fees
There is no annual license renewal fee, and the cost of obtaining a license is lower than in the US, UK, or Switzerland.
Favorable tax policy
Estonia offers competitive tax conditions. The tax rate on undistributed profits is 0%, and the income tax rate is 20%. This allows you to reinvest your profits into business development.
Reliable protection and high security
The country has one of the strongest cybersecurity systems in the world, making it attractive to VASPs and CASPs.
Reputation and customer trust
Estonia is recognized as a crypto-friendly country with a high level of trust in the international market. Licensed companies operate within the legal framework and on an equal footing with traditional financial institutions. In addition, companies are required to comply with strict AML/KYC procedures, which strengthens the reputation of the business.
Requirements for obtaining a crypto license in Estonia
From July 2025, the jurisdiction will adapt to the pan-European MiCA rules, and the conditions for obtaining a license will become stricter. To obtain a crypto license in Estonia (Estonian CASP), your business must meet certain requirements:
Increased authorized capital
In this jurisdiction, the minimum capital for crypto companies depends on the services provided. In 2025, it is:
- €100,000 (approximately $117,300) — for exchange, asset storage, ICO.
- €250,000 (approximately $293,250) — if virtual currency transfers are included.
The capital must be verified and deposited in the form of cash or secure assets.
Local presence and office in Estonia
The company must have a registered legal address and a fully equipped physical office in Estonia with technical support. At least one director and one AML officer must reside in the country.
Competent staff and separation of functions
The company must be staffed with qualified employees. At least two directors are required, one of whom may not combine the functions of AML/KYC officer to avoid conflicts of interest. All key persons must confirm that they have no criminal record and provide documents proving their identity, experience, and education in the financial or crypto sphere.
Development of AML/KYC policies and internal procedures
Internal procedures for combating money laundering and complying with KYC standards must be implemented by the AML/CFT Law, MiCA, and FATF requirements. It is also important to establish a system of internal control, transaction monitoring, and response to suspicious activity.
Appointment of an auditor and mandatory audit
From 2025, an audit of the annual accounts will be mandatory. When applying, you must indicate an external auditor accredited in the EU and submit the reporting structure.
Strict requirements for IT systems
The company’s IT infrastructure must ensure the security of user funds, include a system for customer screening, transaction monitoring, and secure data storage. The development of such systems must be financed from the company’s funds, not from client assets.
Mandatory business plan and financial model
The company must provide a two-year business plan with a forecast of income, expenses, and development, as well as a description of the business model, target audience, and risk management mechanisms.
Opening a corporate bank account
The company must have an active bank or payment account in Estonia or in another EU country authorized to provide services in Estonia.
Data storage
The company is required to retain business and customer documentation for at least 5 years after the end of its activities and provide it to the regulator upon request.
Service packages for obtaining of Estonia crypto license
Corporate account for business activity + Board member/AML Officer with local residence + entire maintenance
- All services from Extended Package
- Corporate documents
- Corporate account
- Local Office
- Local AML Officer
- Local Management Board Member
Bank Account for operating activity
- All services from Basic Package
- Corporate documents
- Corporate account
Entire assistance with formation and license acquisition
- Dedicated consultant with the fully provided individual approach
- Full turnkey company formation assistance
- Company name of your choice
- Share capital registration
- Virtual box
- Draft of AML/KYC Policy
- Assistance with payment of state fee
Procedure for obtaining a crypto license in Estonia
Company registration
Step 1
First, you need to register a legal entity in Estonia — most often an OÜ (equivalent to an LLC). Registration is possible both through e-residency and in person through a notary. An Estonian resident is appointed as director, and a legal address is registered. The founders provide documents confirming their identity and absence of criminal records. If you have e-residency, registration is possible in 1 day.
Preparation of documentation
Step 2
A set of founding and legal documents is prepared, including:
- AML/KYC/KYT policies and procedures;
- description of the business model;
- proof of origin of funds;
- biographies and certificates of no criminal record for key persons.
Documents must be in Estonian and English, well structured, and comply with the requirements of the regulatory authority.
Team and infrastructure formation
Step 3
An AML/KYC officer is appointed, and an internal auditor and other specialists are hired if necessary. KYC solution providers, custodial and banking partners are also selected, and IT infrastructure and internal control procedures are prepared.
Application submission
Step 4
After completing the preparation, the company submits the application and the prepared package of documents to the regulatory authority and pays the state fee. In 2025, the state fee is €10,000 (approximately $11,730).
During the review process, the regulator may request additional documents, interview company representatives, and request clarification on the business model or internal procedures.
Obtaining a CASP license in Estonia
Step 5
If all stages are completed and the company meets the established requirements, the regulator issues a license to conduct cryptocurrency activities. From this moment on, the organization obtains the status of a financial institution and can officially provide services related to crypto assets.
Request more information about the Estonian crypto license
Transitional Period from VASP to CASP in Estonia
A crypto license in Estonia is an official permit to provide services related to crypto assets, regulated at the national and European levels. Until 2024, licensing was the responsibility of the Financial Intelligence Unit (FIU), but with the introduction of the pan-European MiCA (Markets in Crypto-Assets Regulation) and the national Crypto Asset Market Act (CMA), regulation has been transferred to the Estonian Financial Supervision and Resolution Authority (FSA).
Thus, in 2025, two parallel licensing models will operate in the Estonian crypto market:
- VASP (Virtual Asset Service Provider) — a license format issued by the FIU. It is valid under the previous legislation until the end of the transition period.
- CASP (Crypto-Asset Service Provider) — a new type of license that complies with MiCA standards. CASP is regulated by the FSA and covers a much wider range of crypto services.
A transition period is in effect until July 1, 2026, during which companies with a VASP license may continue to operate. However, they are required to:
- obtain a CASP license from the FSA by the specified date;
- bring their activities into compliance with MiCA requirements;
- be prepared for enhanced supervision by the FSA.
From July 1, 2026, the CASP license will become the only valid form of authorization for crypto activities in Estonia, and all VASP licenses previously issued by the FIU will be revoked.
Overview of crypto regulation in Estonia
Key requirements and features of crypto regulation in Estonia:
| Project duration | 6-8 months |
| State fee for application | 10 000€ |
| Required share capital | €100,000–€250,000 |
| Corporate income tax |
0% on reinvested profits. 22% on withdrawn profits
|
| Annual supervision fee |
2% of total annual transactions
|
| Local employee |
Local director, local anti-money laundering officer, local internal auditor, local external auditor
|
| Physical office | Required |
| Accounting audit | Required |
| Stability | Stable |
| Bank account options | European EMI |
Regulation of cryptocurrencies in Estonia
By 2025, the regulation of the cryptocurrency business in Estonia will have reached a high level of maturity and will comply with European Union legislation.
Currently, supervision of activities in this area is carried out by two key bodies: the Estonian Financial Supervision Authority (EFSRA, FSA) and the Financial Intelligence Unit (FIU, Rahapesu Andmebüroo).
Until recently, the FIU played the main role in regulation—it was this body that issued licenses to virtual currency service providers (VASPs) and monitored compliance with anti-money laundering and counter-terrorist financing (AML/CFT) legislation under the MLTFPA. However, on July 1, 2024, the Crypto Asset Market Act (CMA) came into force in Estonia, integrating the European regulations MiCA (Regulation on Markets in Crypto Assets) and DORA (on digital sustainability in the financial sector) into the national legal system.
With the transition to the new regime, regulatory powers have been transferred to the FSA. Now it is this body that:
- Issues CASP (crypto asset service providers) licenses to providers of services related to crypto assets;
- monitors compliance with requirements for capital, customer asset protection, transparency, governance, and complaint handling;
- monitors compliance with digital operational resilience under DORA;
- ensures that all players comply with MiCA requirements.
Licenses previously issued by the FIU are valid only until July 1, 2026. After that date, all providers are required to obtain a new CASP license from the FSA, regardless of their past status. The transition period does not imply automatic recognition of existing authorizations.
The provisions of the Crypto Market Act affect all existing and new participants, including financial institutions, if their activities affect the field of crypto assets. Thus, the regulated entities are:
- crypto asset exchanges;
- custodial wallet providers;
- crypto asset exchange platforms;
- issuers of asset-referenced tokens (ARTs) and electronic money tokens (EMTs);
- providers of transfer, management, storage, and advisory services in the field of crypto assets.
Such companies are required to undergo a rigorous licensing process and comply with requirements for capital, corporate governance, internal control, customer asset protection, and transparency. This means greater integration of crypto businesses into the traditional financial system and increased oversight of risks related to cybersecurity, money laundering, and investor protection.
Legislative framework
The legislative framework for regulating crypto businesses in Estonia combines both national legislation and European standards. From 2024–2025, regulation has become even more systematic thanks to the introduction of new laws aimed at increasing transparency, financial stability, and compliance with EU standards.
Key laws regulating crypto activities in Estonia:
Adopted on March 15, 2022, this law has long been the basis for regulating the crypto business in Estonia. It:
- defines the concept of virtual currency;
- establishes mandatory procedures for combating money laundering (AML) and terrorist financing (CTF);
- requires customer identification (KYC), transaction monitoring, and reporting;
- regulates the activities of virtual currency service providers (VASPs), previously licensed by the FIU (financial intelligence unit).
The MLTFPA is still in force, but now mainly performs AML/CTF functions, having ceded its role as the primary regulator for licensing to new acts.
- Crypto Asset Market Act (CMA).
Entered into force on July 1, 2024. It is a national implementation and supplement to the European MiCA and DORA regulations and regulates:
- the activities, licensing, termination of activities, and liability of crypto market participants;
- all types of crypto services (exchange, storage, trading, consulting, transfers, etc.);
- the protection of customer rights, capital requirements, corporate governance, the storage of customer assets, and complaint handling mechanisms;
- mergers, transformations, and bankruptcies of crypto companies.
All crypto market participants, both local and international, working with Estonian customers, are required to bring their activities into compliance with the CMA. From December 30, 2024, it will apply to all new participants, and a transition period is provided for holders of old licenses until July 1, 2026.
- EU Regulation on Markets in Crypto Assets (MiCA, Regulation 2023/1114).
This is a pan-European regulation on which the CMA is based. For the first time in the EU, MiCA introduces:
- a single classification of crypto assets;
- uniform rules for custodians, issuers, platforms, exchanges, and other crypto service providers (CASP);
- requirements for transparency, ownership structure, and corporate governance;
- special provisions for asset-referenced tokens (ARTs) and electronic money tokens (EMTs).
From July 2024, MiCA will apply directly in Estonia as part of the CMA and will set standards for the entire industry.
- EU Regulation DORA (on digital operational resilience).
Complements MiCA by establishing requirements for:
- IT security of crypto companies;
- management of risks related to digital infrastructure;
- notification of cyber incidents and their prevention.
DORA applies to both banks and CASPs, strengthening oversight of the resilience of crypto businesses to technological failures.
- International Sanctions Act (2019).
Requires crypto companies to check customers and transactions for compliance with international sanctions. This reduces the risks of crypto assets being used to circumvent restrictions and finance prohibited regimes.
Thus, Estonia’s legislative framework is based on modern European standards and includes strict requirements for governance, reporting, and supervision, creating a stable, secure, and transparent environment for crypto businesses.
Licensing and registration
In 2025, Estonia continues its transition to a new crypto market regulation system in accordance with the pan-European MiCA regulation and the national Crypto Asset Market Act. The key licensing document is the CASP (Crypto-Asset Service Provider) license, which is gradually replacing the previously valid VASP licenses.
The CASP crypto license is an official permit issued by the Estonian Financial Supervision Authority (FSA). It confirms the company’s right to provide a wide range of services related to digital assets.
These activities include:
- cryptocurrency wallet storage services — the company can provide custodial services, i.e., manage clients’ crypto wallets and store their private keys on behalf of the owners;
- cryptocurrency exchange for fiat currency — the company is granted the right to buy and sell digital assets in exchange for traditional currencies;
- exchange of one virtual currency for another — the company is permitted to provide a service that allows users to exchange one crypto asset for another.
Income from exchange transactions is usually generated by charging a commission.
When applying for a license, a company must indicate the specific activities it plans to engage in and register as a provider of the relevant services. It is possible to register for all areas covered by Estonian law at once.
Obtaining a license is mandatory for anyone who wants to legally conduct crypto business in Estonia and have access to the European market on a stable legal basis. The license confirms that the company complies with AML/KYC standards, has a transparent structure, sufficient capital, and reliable managers.
To obtain a license, a company must:
- be registered in Estonia;
- have a physical presence in the country (office and employees);
- comply with AML/CFT rules and conduct KYC procedures;
- ensure a transparent corporate structure;
- have qualified and trustworthy managers;
- provide a business plan and description of activities;
- have authorized capital (the amount depends on the services provided).
The CASP license is indefinite, but it is non-transferable and may be revoked if the requirements are violated.
The transition period lasts until July 1, 2026. Until that date, companies with an outdated VASP license (issued by the FIU) may continue to operate but are required to switch to CASP and bring their business into compliance with the new regulations. From July 1, 2026, the CASP license will be the only valid form of admission to crypto activities in Estonia.
Register of crypto companies
The Estonian register of cryptocurrency companies is open and available on the website of the national Economic Activities Register, which contains information on all licensed companies in Estonia, not just those in the crypto sphere.
Companies in the register are classified by license type, reflecting differences in their regulatory status. Since there are several types of crypto licenses in Estonia, each registered company is listed according to the services for which it has been authorized.
Thus, the register separately lists companies registered for the following activities:
- provision of services related to virtual currency;
- provision of cryptocurrency wallet storage services;
- conducting cryptocurrency-to-fiat exchange transactions.
In addition, the register also lists companies whose licenses have been revoked.
Taxation of cryptocurrencies in Estonia
According to current legislation, the state does not introduce special tax regimes for digital assets, including ICOs — the crypto business is subject to general taxation principles adapted to the specifics of the crypto economy.
Transactions with cryptocurrencies are regulated by the standard provisions of the Income Tax Act and the Turnover Tax Act. However, the authorities are actively discussing possible changes that may come into force at the beginning of 2026.
Since the beginning of 2025, the income tax rate in Estonia has changed, increasing from 20% to 22%. This applies, among other things, to the income of individuals from transactions with crypto assets. Since cryptocurrency is considered property, profits from its sale or exchange are taxable if such a transaction generates income. Each transaction is assessed separately, and tax is levied on the positive difference between the purchase price and the sale price (or the value of the property received in exchange). Losses from crypto transactions are not included in the taxable base, except in cases involving securities specified by law.
Corporate taxation remains stable. Undistributed profits of Estonian companies are not taxed, but a rate of 22% applies to the distribution of dividends or other types of profits. This tax is calculated using the formula 22/78 of the net distribution amount. This means that as long as the income from an ICO remains within the company and is not distributed among shareholders, it is not taxed. However, as soon as the funds are distributed, a tax liability arises.
With regard to value-added tax, Estonia follows the position of the European Court of Justice, according to which cryptocurrencies are treated as legal means of payment. Accordingly, the use of digital assets as a means of payment is not subject to VAT. Financial transactions involving the exchange of cryptocurrencies for fiat money and vice versa are also exempt from this tax. However, not all crypto services are eligible for tax exemption: for example, asset storage services in wallets are considered technical rather than financial and are subject to the standard VAT rate, which will be 22% from 2025.
Thus, in 2025, Estonia offers a neutral but fairly favorable tax environment for crypto companies and private investors, while gradually increasing the fiscal burden by raising rates.
Obligations for conducting crypto business in Estonia
Conducting crypto business in Estonia is subject to a number of strict obligations established under anti-money laundering and counter-terrorist financing (AML/CFT) legislation. Companies providing services related to virtual currencies are considered reporting entities and are required to comply with certain control and reporting procedures.
One of the key requirements is the obligation to monitor customer transactions to identify suspicious activity. This includes analyzing business relationships and daily transactions, as well as mandatory notification of the Financial Intelligence Unit (FIU) if signs of possible money laundering or terrorist financing are detected. Particular attention is paid to large transactions exceeding €32,000 or the equivalent in another currency if the settlement is made in cash. Even if this amount is split into several payments over a year, the reporting obligation remains. However, this requirement applies specifically to cash transactions and does not directly apply to cryptocurrency transactions.
Cryptocurrency service providers are required not only to conduct internal monitoring but also to undergo mandatory audits to assess their compliance with AML/CFT requirements. Thus, the crypto business in Estonia requires a systematic approach to financial compliance, including the establishment of transparent procedures for customer identification, transaction monitoring, and interaction with the regulator.
Liability for non-compliance
Failure to comply with the established requirements may result in serious liability. Estonian legislation, including the Crypto Asset Market Act and the provisions of the European MiCA Regulation, provides for both administrative sanctions and supervisory measures.
The most common consequences for violators are license revocation, especially in cases where the company does not commence operations within six months of receiving a license or ignores key requirements.Penalties and fines are also possible.
For individuals, the maximum fine can reach €700,000 and, depending on the circumstances, twice the amount of the illegally obtained profit or losses that were avoided. For legal entities, the penalties are significantly higher—up to €5 million, or up to 5% of annual turnover (or the turnover of the entire group of companies), or twice the amount of the benefit obtained.
Special attention is paid to issuers of crypto assets. Violation of MiCA requirements for reserve-backed assets (ART) or electronic money tokens (EMT) entails similar liability. Fines of up to 12.5% of turnover or up to €15 million are possible in cases of serious market abuse.
If a crypto company violates disclosure rules, ignores requirements to combat market manipulation, or commits other abuses, the sanctions are increased: individuals face fines of up to €5 million, and legal entities face fines of up to €15 million or up to 15% of turnover.
In addition to financial penalties, the Estonian Financial Supervision Authority (FIU) has the power to apply coercive measures. It has the right to temporarily suspend a company’s activities, revoke its license, or demand that violations be remedied within a specified period.
Conclusion
Estonia remains one of the most promising and regulated jurisdictions in the European Union for licensing cryptocurrency activities. However, this comes with high compliance requirements, both at the stage of obtaining a license and in the process of maintaining it. New applicants must already ensure full compliance with the standards set by the MiCA Regulation.
Companies that already hold a license must transition to CASP (Crypto-Asset Service Provider) status by July 1, 2026, at the latest. This means that they will need to review their internal structure, compliance procedures, and reporting in line with the new rules.
To avoid delays and ensure a smooth transition to MiCA requirements, it is essential to enlist the support of specialists who are familiar with Estonian regulations. The Gofaizen & Sherle team is ready to provide professional assistance at all stages, from document preparation and interaction with the regulator to full support in obtaining a crypto license in Estonia.
FAQ about crypto license in Estonia
What is a cryptocurrency license in Estonia?
It is an official permit issued by a state regulator that allows a company to legally provide services in the field of virtual assets, from cryptocurrency exchange to payment solutions and electronic wallet services.
Who can apply for a license?
The application must be submitted by one of the members of the board of directors of a company registered in Estonia, along with a complete set of required documents.
What services does a crypto license cover?
One license covers several areas of activity at once: cryptocurrency exchange, receiving and sending payments, storing digital assets, and conducting ICOs.
How long does the process take?
The application review process can take up to 60 business days. In some cases, this period may be extended for the same amount of time.
Can foreign founders obtain a license?
Yes, non-residents of Estonia are entitled to open a cryptocurrency business, provided that all local requirements and regulations are complied with.
How much does it cost to obtain a license?
The official application fee is €10,000 and is payable to the Estonian Ministry of Finance.
Are there any restrictions on the types of cryptocurrencies?
There are no restrictions on the use of specific cryptocurrencies in Estonia, but the company must comply with anti-money laundering (AML) and customer identification (KYC) requirements.
How long is a cryptocurrency license valid for?
A CASP license is issued for an indefinite period, but the company is required to maintain compliance with all requirements: regularly update data, report to the regulator, appoint an AML officer, and strictly adhere to compliance procedures. In case of violations, the license may be revoked.
What to do if a license is denied?
If the regulator refuses to issue a license, it is important to analyze the reasons. Most often, the refusal is due to incomplete or inaccurate documents. After addressing the comments, you can reapply. Gofaizen & Sherle specialists are ready to help you prepare the correct set of documents and accompany you throughout the process, increasing your chances of successfully obtaining a license.
What tax obligations arise after obtaining a license?
After registration, the company becomes a tax resident of Estonia. Tax obligations include income tax on profits from transactions with crypto assets (including their exchange), corporate tax on distributed profits, as well as VAT on non-exempt services, such as the provision of wallets.
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