Estonia
Starting a Cryptocurrency Company with
Exchange and Wallet Service Provider License

Cryptocurrency Exchange License in Estonia

Estonia has a clear and favourable legal and tax environment for cryptocurrency exchange and crypto wallet services provider companies (e.g. 0% corporate income tax). This small European Union country of just 1.3m people is regarded as one of the world’s most advanced digital nations, it is a widely recognised alternative to jurisdictions like Malta, Gibraltar or Switzerland, only with lower costs and simpler administration. Our legal team supports with end-to-end setup of blockchain and crypto company structures with a full range of support services, including licensing.

Currently the process of obtaining a cryptocurrency exchange license is a quite time-consuming process, that requires a thorough preparation and certain experience from the side of an applicant. As of today only few countries in the world are issuing crypto currency exchange licenses.

Our experts are ready to explain all advantages and disadvantages of possible jurisdictions, that currently issue licenses for crypto currency exchange.

Obtaining Estonia Cryptocurrency License

In order to start up a successful cryptocurrency exchange business in Estonia entrepreneur is required to obtain a crypto currency exchange license. Estonian cryptocurrency exchange license applies to transactions with funds that are recognized by the society and can be converted into a fiat currency. For example, Estonian license allows you to carry out operations with Bitcoin cryptocurrency. With cryptocurrency exchange license, you may receive funds from third parties as well as transfer them.

Official Crypto Licenses in Estonia

Providers of a service of exchanging a virtual (crypto) currency against a fiat currency.
Official activity license covering services for exchanging fiat to crypto, crypto to fiat and crypto to crypto. 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.

Providers of a virtual (crypto) currency wallet service

Wallets are digital offline (cold wallet) and online tools (hot wallet) based on public-key cryptography used to securely send and receive crypto currencies. 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.

Both crypto activity licenses are issued by the Estonian Financial Intelligence Unit (FIU) and can be applied for separately or together. Our legal team assists in obtaining both the cryptocurrency exchange and wallet service licenses by preparing all required legal compliance documentation and managing the process on your behalf.

The full procedure to set up the company and obtain the license(s) can be carried out remotely with no visit required, it is safe to consider 30 days for completion of the full setup.

Requirements for Obtaining a
Cryptocurrency Exchange License Estonia

Regardless of the jurisdiction you plan on operating under you will need to obtain a cryptocurrency license in that jurisdiction. No matter where you obtain your license you will be required to supply the local financial services authorities with the relevant documents. We have listed the basic requirements for obtaining a Bitcoin license including corporate and personal documents.

What you need to provide:

– A comprehensive business plan including all aspects of planned endeavours for the coming two years; the scope of the activities and the planned means to be employed in carrying out these projects.
– A detailed description of operational, risk and compliance software.
– Background information/CV for the principals of the company
– Specifics about the source of invested capital
– Website address
– Legal documents of each of the company’s principals including notarized copies of passports, latest utility bills, Police Clearance Certificates and other personal documents of the company owners.

New Estonian Legislation

On November 27, 2017 the Estonian Parliament modified the Anti-Money Laundering Act and Terrorism Finance Act. Operating licenses are therefore issued by the Estonian Financial Intelligence Unit (FIU) – an independent unit operating under the supervision of the Estonian police department and the Border Guard Board.

When applying for a cryptocurrency exchange license in Estonia, the proper application form, along with additional documents and pertaining information, have to be completed and submitted to the Register of Economic Activities.

Advantages of a Regulated Cryptocurrency Company

Transparency – No matter where your company is registered the jurisdiction regulators keep a record of all company operations including liquidity, legal status and more. Crypto Bitcoin traders can easily go online and verify the legitimacy of your company and check that it has no previous serious disputes with clients or the regulators or hidden agendas.

Security – Bitcoin licensed businesses are required to protect their clients’ funds by holding them in segregated accounts, independent from the company corporate bank account. By taking this precaution the company insures that:

– Clients’ funds are protected, and the company will not be able to close their business and abscond with the clients’ funds.
– The company is unable to use clients’ funds interchangeably – transferring one client’s funds to another client’s account.

Increased Credibility – A company holding a cryptocurrency license from a reputable jurisdiction is conceived as more reliable and credible. Traders and employees alike view a licensed cryptocurrency company as more trustworthy.

Dispute Center – Licensed cryptocurrency companies have to abide by the rules and regulations of the jurisdiction where they were registered. In the event of a dispute arising the regulator will investigate the complaint against the Cryptocurrency company and decide if the complaint is justified. If the complaint is found to have merit this can affect the status of the company’s license and even, in some cases lead to sanctions, fines and the cancelation of the broker’s license.

Why TBA

What separates us from our competitors is that our services don’t end with the registration of your company. We offer a wide range of additional services others can’t or just won’t offer, such as lifetime free support.

Whilst most providers either specialise on personalized consultation at relatively high rates or run bulk registration factories without any support, we want to offer the positive aspects of both types.
Therefore TBA combines professional advice, worldwide registration services, reasonable fees, customized order processing, lifetime support and fast processing. Where others see company formation services as a bulk registration with no support and no individual assistance, we do care about your business needs

Should you have any question or matter
You would like to discuss or clarify with us

Or

Should you like to receive further Information
About our services and fees, …

Our multi-lingual team of business advisors is happy to assist you with all upcoming questions and issues in relation to your company.

You may call or email us, and we will be happy to assist you in a fast and efficient manner.

You can also come and visit us at our Limassol offices to discuss issues face to face if you prefer. Just arrange an appointment and we will be happy to meet with you.