Estonia5 benefits of attaining crypto license in Estonia

January 20, 2023by Tetra Consultants0
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  • Estonia is one of the few jurisdictions that has controlled the issuance of cryptocurrency licenses, as well as the activities of businesses that trade them. Its regulation is continually attempting to keep up with evolving market trends, reinforcing Estonia’s position as Europe’s most technologically sophisticated country.
  • Estonia is recognized by its uncomplicated, welcoming tax policy, which exempts cryptocurrency from specific taxes like VAT or PCC. It serves an excellent environment to establish a cryptocurrency business and attain crypto license in Estonia, with no limits on investments in virtual currencies, legal laws, and minimal operational expenses, making cryptocurrency licenses in Estonia more accessible. Additionally, Estonia is one of the most coveted jurisdictions for acquiring a cryptocurrency license as a cryptocurrency license granted in the nation enables the bearer, among other things, to run cryptocurrency exchanges and oversee hosted cryptocurrency wallets. Hence, Estonia is the ideal location for blockchain-related businesses since it is simple to get a license and because of the freedom, it offers both within the European Union and beyond it.
  • In this article, Tetra Consultants team has laid down the benefits of attaining a crypto license in Estonia. We are a group of qualified consultants, attorneys, and accountants with extensive knowledge of business, finance, and law. We have been offering assistance to blockchain startups and cryptocurrency businesses in Estonia and EU. Since then, we have helped our clients get an Estonia cryptocurrency license and assisted them in integrating their crypto ventures within the EU legal system. Our team of professional consultants always keeps track of the most recent developments in the blockchain and cryptocurrency sectors, and we are capable of handling even the most challenging issues. 

5 benefits of attaining crypto license in Estonia

  • Favorable legal regime:

  • A cryptocurrency business formed under Estonian laws and jurisdiction can benefit from fair and efficient regulation. The Estonian Money Laundering and Terrorist Financing Prevention Act, as well as related provisions from the National Financial Intelligence Unit and other competent authorities, demonstrate main and additional rules that authorize licensed companies to recognize what is permitted, what is prohibited, and how they must act in general to comply and remain in compliance with the law.
  • Estonia is one of the first nations to begin regulating the market for virtual currencies under the Estonian Money Laundering and Terrorist Financing Prevention Act which stipulates that the government must grant permission for custodial wallet services and virtual currency exchange providers. This indicates that you cannot offer such services unless you have obtained a financial license. Having clear legislative requirements and increasing industry transparency both aid in directing businesses in the right direction. Users of such cryptocurrency services can also feel more at ease utilizing such services knowing that the business is being watched over and has complied with all legal obligations. 
  • In Estonia, virtual currencies are regarded as property. As a result, certain companies can be formed by generating a non-financial share capital contribution using Bitcoins and other cryptocurrencies. This enhances flexibility when assets are already virtual currency and is quite creative.
  • E-residency

  • One of the few nations in the world that allows remote business operations by foreign entrepreneurs is Estonia. In the country with the most sophisticated digital infrastructure in the world, anyone can start a business. Foreigners can access all government-provided Estonian e-Services by obtaining an e-Residency card, which is simple to get. The card may be used to sign documents remotely and digitally as well. You may save the time and money squandered on bureaucracy while opening and operating a company by becoming an e-Resident.
  • Advantageous tax system

  • For the eighth year in a row, Estonia was named as having the most favorable tax climate among Oecd member countries in 2021. This is largely a result of low tax burdens, particularly the absence of taxes on the reinvestment of business profits. Additionally, according to the Estonian Income Tax Act, crypto assets are classified similarly to real estate and are free from VAT in Estonia. This indicates that only earnings from the sale or exchange of virtual assets, mining, or compensation for services rendered are subject to taxes.
  • Single cryptocurrency license

  • The Estonian local government organization and incharge of issuing a crypto-license in the Republic of Estonia is the National Financial Intelligence Unit (FIU, or Rahapesu Andmebüroo, RAB). According to the Law on the Prevention of Money Laundering and the Financing of Terrorism, a license known as a single cryptocurrency license is necessary to conduct business in the crypto services sector. This category includes two distinct services: a provider of virtual currency wallets and a virtual currency exchanger. They formerly needed two separate licenses, which have been combined into the Virtual Currency Service Provider License.
  • Accordingly, crypto wallets and custodial services include the generation and storage of encrypted customer keys wherein cryptocurrency wallets are digital online and offline tools that employ public-key cryptography to securely transfer and receive cryptocurrency across the network. There are two types of wallets: one is, cold (offline wallets, such as hardware wallets and paper wallets for cryptocurrencies) and another one is hot (internet wallets) storage. The main is that cold wallets keep digital currency offline (without an internet connection), whereas hot wallets are mostly used to store modest quantities or on a daily basis. Hot storage wallets for cryptocurrencies include traditional and multicurrency wallets. As a consequence, a single cryptocurrency license in Estonia allows for the provision of cryptocurrency wallet services for both cold and hot storage.
  • Whereas, crypto-exchange services allow cryptocurrency exchange for FIAT money or vice versa or cryptocurrency for another cryptocurrency and a single cryptocurrency license in Estonia allows exchanging of cryptocurrency for FIAT and cryptocurrency for cryptocurrency as well.
  • Simple licensing system

  • The country provides a simplified manner of submitting a license application to the regulatory authority. In general, the authorities in Estonia approve cryptocurrency licenses in less than sixty days (in case the authority is satisfied with the documents and application submitted), providing them an edge in the application time period when compared to other nations. Furthermore, as the nation now offers a single license for crypto trading and wallet licensing, known as the Virtual Currency Service,  the company’s additional costs are reduced, and the application procedure is more transparent.

Conclusion

  • The cryptocurrency market has received a lot of attention in recent years from free-market enthusiasts like us. What began as a few people’s dream has grown into a dependable, consistent, and profitable business. Estonia is usually regarded as the finest cryptocurrency licensing jurisdiction. And Tetra Consultants’ team of professionals can assist you in promptly obtaining your cryptocurrency license in Estonia and establishing your crypto business.
  • Our service package includes everything you need to get your cryptocurrency business started. We provide continuous support to register company in Estonia, corporate bank account opening services, preparation and submission of license applications, and supporting AML/CFT policies, as well as taking due care of your tax and accounting obligations. 
  • In addition to the above, Tetra Consultants’ team of licensing experts is proficient in assisting with various offshore financial licenses. Our core value is freedom because we want to help you live, invest, and work freely. We want to help you guard the legacy you have worked so hard to build and help you make the best investments in the best jurisdictions.
  • Contact us to find out more about how to get an Estonia cryptocurrency license. Our team of professional experts will revert within the next 24 hours. 

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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