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Securing Your Estonia Crypto License: Key Steps and Benefits

Updated: Jan 2

Estonia, a frontrunner in digital innovation, offers a unified, all-encompassing "Virtual Asset Service Provider" license, catering to a wide range of cryptocurrency services. This strategic move positions Estonia as an attractive hub for cryptocurrency businesses.



Tallinn cityscape with a highlight on crypto licensing in Estonia.
Tallinn cityscape with a highlight on crypto licensing in Estonia.


Scope of Estonia's Crypto License

  1. Virtual Wallet Service: The license allows companies to create or manage cryptographic keys for clients, essential for storing, transferring, and safeguarding digital currencies.

  2. Fiat-to-Crypto Exchange: It facilitates transactions between fiat and cryptocurrencies, enabling conversion in both directions.

  3. Crypto-to-Crypto Exchange: This aspect of the license permits transactions between different cryptocurrencies.


Detailed License Requirements

  • Capital Requirement: A minimum of €100,000 share capital is required for wallet services, and €250,000 for exchange services.

  • Corporate Structure: At least one shareholder is needed.

  • Local Presence: Establishing a local office and hiring a local director are mandatory.

  • Financial Accounts: Opening a bank or Payment Service Provider (PSP) account in an EEA country offering services in Estonia, or with a provider having a branch in Estonia.

  • AML Compliance: The appointment of a local Anti-Money Laundering (AML) officer is essential.

  • Regular Audits: Adherence to both monthly and yearly audits is required.

  • KYC and SOF Checks: Conducting Know-Your-Customer and Source-of-Funds checks is crucial.

  • Company Registration: Registering as a private limited company (LTD or OÜ in Estonian) can be completed remotely, especially due to COVID-19 measures.

  • Share Capital Registration: Demonstrating the required share capital for the respective services.


Additional Licensing Features

Estonia's crypto license also enables a multitude of crypto-related activities, including but not limited to:

  • Over-the-Counter (OTC) services, Initial Exchange Offerings (IEO), utility token trading, and crypto fund activities.

  • Provision of services like issuing branded debit cards, custodial services, and facilitating NFT minting and trading.

  • Enabling futures, shorts, staking, and transactions involving euro deposits and withdrawals.


Application Process Duration

The entire process, from company setup to license acquisition, typically spans 6-9 months, reflecting Estonia's commitment to a balanced approach between regulatory thoroughness and business efficiency.


Estonia Crypto License Register

The Financial Intelligence Unit (FIU) of Estonia issues the coveted crypto license, a mandatory credential for any business aspiring to operate in the Estonian crypto market. For a detailed understanding and to initiate your journey in securing an Estonia crypto license, check out Consulting24 Estonia Crypto License Registration.


Consulting24 founder Lena Elvbakken & Mardo Soo
Consulting24 founder Lena Elvbakken & Mardo Soo



Why Consulting24 team?

Consulting24 stands out in the realm of cryptocurrency licensing and regulation with a team that blends deep industry knowledge, regulatory insight, and practical experience. This formidable group has successfully completed over 500 crypto licenses , including notable projects like the Binance crypto license in Estonia.









Conclusion

Estonia's Virtual Asset Service Provider license offers a comprehensive, regulatory-compliant framework for a vast array of crypto services. This holistic approach, combined with Estonia's digitally advanced environment, makes it a desirable location for crypto businesses seeking to operate within a clear legal structure and access European markets.

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