For years, Estonia has been one of the best countries to start and run a cryptocurrency exchange business. The country is famous among entrepreneurs for its flexible business environment.
However, after recent amendments to the AML laws, the country stopped being preferred by most entrepreneurs. The AML demands have become stricter than before.
Still, the country remains an affordable and profitable place to start a cryptocurrency exchange business, apart from adopting specialized legislation. It also has several forms of cryptocurrency licenses.
What an Estonia Cryptocurrency License Is
A crypto license in Estonia is for companies associated with digital currencies. This includes global exchanges, such as Crex24 and Payer Exchange. The license’s appeal is an uncomplicated process of registration and clear-cut laws.
The Estonian National Financial Intelligence Unit is responsible for issuing these permits. It ensures businesses stick to rules and regulations on terrorist financing and money laundering. With a license, a business can help with digital asset exchange and provide services like digital wallets.
Why Estonian Cryptocurrency license
First, Estonia makes it easy for crypto businesses to acquire a permit through a single permit that covers virtual exchanges and currency wallets. This, in turn, streamlines expenses and minimizes administrative burdens, making it much easier for companies to enter the market.
Second, the country’s authorities are well-known for quickly responding. This quick process enables businesses to launch their operations sooner than in many other jurisdictions.
Last but not least, Estonia has attractive tax policies. This reflects an appealing tax environment, especially for startups in the cryptocurrency community.
Cost
Among the reasons to opt for a cryptocurrency license in Estonia is the low initial cost. The application fee is 3,339 euros, the license fee is 10k euros, and the total initial fee is around 13k euros.
However, these are just basic costs – they don’t include additional fees. For instance, new entrepreneurs might be required to provide rent real estate and authorized capital for their offices.
Requirements
To get a permit in this country, you must meet certain requirements. These requirements include the following:
- Share capital
- One director
- Economic substance
- Corporate bank account
- Non-criminal records
- Appointment of a local CFT/AML officer
Application Process
Getting a permit in the country can be broken down into various stages. Some of these stages include the following:
1. Company Formation
Don’t just develop a legal entity to ensure compliance with registration requirements in the country. Establish it to set up a physical office.
2. Capital Requirement
You must deposit about 250k euros for custodial services and 100k euros for exchange services to your business bank account.
3. Submission of Documents
Prepare and hand over the required documents to the Estonian FIU (Financial Intelligence Unit). A business plan is a good example of a document you must submit.
4. Regulatory Review
You must engage with the FIU throughout the review procedure by providing clarifications or any information as required.
5. Issuance of a Permit
Upon arrival, you will get your permit and start business operations. This will ensure continuous compliance with the country’s regulations.
In conclusion, although the regulatory and digital landscape keeps changing, the country remains one of the hotbeds for cryptocurrency businesses. Getting a permit in the country is not just about ensuring secure and legitimate operations; it is also about putting companies at the forefront of the crypto revolution.
Anantha Nageswaran is the chief editor and writer at TheBusinessBlaze.com. He specialises in business, finance, insurance, loan investment topics. With a strong background in business-finance and a passion for demystifying complex concepts, Anantha brings a unique perspective to his writing.
