Estonia cryptocurrency license
Tetra Consultants assists our international clients to secure Estonia cryptocurrency license. Estonia is a popular jurisdiction for investors looking to set up cryptocurrency business. The country is friendlier with less regulations as compared to other crypto-friendly jurisdiction such as Malta or Gibraltar. Over the past 12 months, the Estonian government has approved more than 900 cryptocurrency licenses.
On 19th December 2019, Estonia Financial Intelligence Unit (FIU) confirmed multiple changes to its existing Estonia cryptocurrency license regulations. The changes are applicable to both existing license-holders as well as new applicants. In addition, the changes also apply to companies that are currently holding the financial institution license.
As of 10th March 2020, all new license applicants are required to comply with the new regulations. For existing license-holders, you are required to meet the new requirements before 1st July 2020. Failure to comply will result in licenses being revoked. In the past, there are two types of cryptocurrency licenses in Estonia – Cryptocurrency exchange license and cryptocurrency wallet license.
Going forward, they will be combined into one single umbrella license known as the Virtual Currency Service Provider license. Our team of experts is able to assist you to meet all additional requirements and ensure you are able to legally conduct cryptocurrency business using your Estonia entity. Contact us now to find out more.
Summary of changes
- The license is now known as “Virtual Currency Service Provider” license
- The license application fee has increased from €345 to €3,300.
- The required share capital has been increased from €2,500 to €12,000.
- Economic substance required in Estonia – physical office, local management team and compliance officer.
- Non-criminal records for all members in the company regardless of citizenship.
- Corporate bank account should be opened with a bank or PSP in an EEA country.
Virtual Currency Service Provider License
- The license allows your company to conduct cryptocurrency exchange businesses. The license covers services for exchanging fiat to crypto and crypto to fiat. When offering such transactions as a service for commission, it becomes an exchange service. Furthermore, most ICO oriented companies will benefit from this license for legal compliance.
- The license allows your company to carry out businesses similar to a cryptocurrency wallet. Wallets are digital offline (cold wallets) and online tools (hot wallets) based on public-key cryptography used to securely send and receive cryptocurrencies. The license covers services where the private wallet keys are created or held, while the funds belong to the user and not to the service provider.
Purchase existing shelf company with already-approved cryptocurrency license
The total estimated time frame to take over an existing Estonia company with an already-approved cryptocurrency license is 5 weeks. Thereafter, Tetra Consultants will open your corporate bank account within 4 weeks. Within 9 weeks, you can expect to begin your cryptocurrency business in Estonia.
- Within 2 business days, Tetra Consultants will provide you a Power of Attorney for signature.
- You will be required to certify the documents at a public notary, followed by legalization at your local Estonian embassy. This process will take approximately 2 weeks to complete.
- You will be required to courier the documents to Tetra Consultants.
- Once we receive the originals, we will transfer the company within 10 business days.
- Thereafter, Tetra Consultants will submit the change in license holder to the regulator and it will be approved within 30 days.
- If Estonia FIUrequires an interview with you in Estonia, our nominee AML/CFT officer will attend the interview on your behalf.
- Once the company is transferred, Tetra Consultants will open an international crypto-friendly corporate bank account for you within 4 weeks.
Register new Estonia company and apply for cryptocurrency license
The total estimated time frame to register an Estonia company and apply for cryptocurrency licenses is 10 weeks. Thereafter, Tetra Consultants will open your corporate bank account within 4 weeks. Within 14 weeks, you can expect to begin your cryptocurrency business in Estonia.
- Within 14 days, Tetra Consultants will successfully register your new Estonia Limited Liability Company (LLC).
- Our team of experts will apply for two cryptocurrency licenses including cryptocurrency exchange and cryptocurrency wallet.
- Our nominee AML/CFT officer will represent your company to attend a face-to-face meeting with Estonia FIU. You will not be required to travel to Estonia.
- Our team of experts will prepare required AML/CFT procedures and policies and the set of apostilled corporate documents.
- We expect Estonia FIU to approve the applications within 60 working days.
- Once the license application is approved, Tetra Consultants will open an international crypto-friendly corporate bank account for you within 4 weeks.
Mandatory requirements for Estonia cryptocurrency license
The requirements to meet in order to qualify for cryptocurrency license in Estonia are minimal:
- Required share capital of €12,000
- Economic substance required in Estonia – physical office, local management team and compliance officer
- Appointment of a local AML/CFT officer
- Non-criminal records for all members in the company regardless of citizenship
- Non-criminal background confirmation of all company officers
- Corporate bank account should be opened with a bank or PSP in an EEA country
How to secure Estonia cryptocurrency license?
How we can help?
Tetra Consultants has more than a decade of experience in advising our global clients on securing cryptocurrency license in Estonia. Our team of experts will manage your cryptocurrency license application from the start to the end, including incorporation of a new Estonian company, opening of corporate bank account, drafting the legal documents required and securing the cryptocurrency licenses from Estonia FIU.
Contact us now for a free consultation. Our team of experts will revert within the next 24 hours.