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Crypto

Estonian Cryptocurrency Exchange License

When launching crypto projects with a focus on the European area and customers, it is essential to consider one of the European jurisdictions that have a loyal approach to the crypto business. Estonia is among such jurisdictions and can be easily treated as reliable in terms of crypto regulation. Over the years, Prifinance company has successfully assisted a great number of entrepreneurs to obtain the Estonian cryptocurrency license. If you consider launching your crypto project in Estonia, there are some important considerations you need to take into account. 

Company Registration Is Needed 

In order to get a cryptocurrency service provider license, it is necessary to confirm the reliability of the project and investors involved. Registration of a local Estonian company is required for this purpose. This entity will be responsible for providing cryptocurrency services to its customers, ensuring compliance and, of course, interacting closely with local regulatory authorities. 

There are specific company registration requirements in Estonia. For instance, it is necessary to have 1 resident board member and 1 resident person responsible for AML compliance and sanctions monitoring. An external auditor is required as well. A qualifying amount of statutory capital is also needed depending on the type of business activity that a target legal entity is going to carry out. Still, 1 shareholder is enough to start a crypto business in Estonia. A shareholder is also allowed to be a member of the company’s board at the same time. Depending on your domicile and jurisdiction, the registration of a company in Estonia may require specific formalization of documents.

Application to Get an Estonian Crypto License 

Once the company registration is completed, it is possible to apply for a cryptocurrency license. The process may be summarized in five major steps – (1) submitting full and up-to-date information about the company’s structure, shareholders, management, and beneficiaries; (2) drafting a business plan and financial model for the first two years of operation; (3) implementation of IT systems used for customer identification, transaction monitoring and ensuring compliance with the travel rule; (4) ensuring continuous internal and external audit of the company’s activities; and (5) creating and implementing effective internal policies for operation, including KYC/AML and data protection.

Ongoing Support for a Company

The operation of a licensed Estonian company is subject to ongoing detailed monitoring. This is especially important in the course of AML compliance. A licensee needs to carry out ongoing operations tracking, report filling, and extra verifications if needed. Filing annual reports is expected in specific reporting forms. Local accounting consultants will be required to assist in this course. 

How Prifinance Specialists May Help You 

If you wish to start and operate your crypto project in Estonia, Prifinance legal professionals are ready to assist you at each stage of its development, in particular:

  • review your case background and develop registration solutions effective in your case;
  • collect all required information and documents to register a legal entity for your project;
  • take care of numerous preparatory arrangements (registered address, formalization of labor relations with future employees, drafting statutory and registration documents and internal policies, etc.);
  • develop and draft a business plan and financial model in accordance with your business goals and regulatory requirements;
  • handle all related negotiations with local state authorities;
  • open bank accounts in crypto-friendly banks;
  • ensure your compliance with all regulatory requirements, including AML/KYC and data protection.

Contact Prifinance specialists to get a more precise assessment and solutions winning in your business case.

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