Cryptocurrency license in Estonia

Estonia is one of the first jurisdictions in the European Union where public authorities began issuing appropriate licenses to cryptocurrency companies. This happened in 2017. Today, mining, ownership and storage of digital currencies, initial coin offering (ICO), purchase, exchange and sale of cryptocurrencies are allowed in this country. Estonia is considered a country friendly to the crypto industry, but the state tightly controls the work in this area.

The main regulatory body in the field of cryptocurrency activities is the Estonian Financial Intelligence Unit (FIU), the Estonian Financial Supervisory Authority (EFSA), and the Money Laundering Data Bureau are in charge of the operation of crypto companies in the country.

Main requirements for obtaining a cryptocurrency license in Estonia

The criteria for crypto companies wishing to acquire a cryptocurrency license in Estonia are established in the version of the AML Act, which entered into force on 03/15/2022. They require:

• The presence of a physical office in the country.
• At least one of the company’s directors must be a Estonia resident.
• Existence of a corporate bank account or payment system within the territory of the EU economic zone.
• The total contribution of the authorised capital must be at least 100.000 EUR or 250.000 EUR, depending on the type of services provided. Disclosure of the source of funding is required.
• The activities of crypto companies must be carried out in accordance with all the international standards for combating money laundering and the financing of terrorism (AML).
• The management and staff of the company must have an unblemished reputation, no criminal record or involvement in the fraud.
• The Company Director must have at least two years of experience in law, auditing, finance, accounting, government or administrative management.
• Any board member of directors can hold a similar position in up to 2 companies related to cryptocurrency activities.
• An authorised person (AML officer) must have experience and knowledge in combating money laundering, have an official place of work in Estonia and not hold a similar position in other companies. His candidacy must be agreed upon with the regulator (FIU).
• A crypto company must provide the regulator with detailed information about IT systems and other technological tools and solutions that are required to provide their services to customers and comply with security measures.
• Crypto companies in Estonia are required to audit their accounts. An external auditor may be appointed.
• A company wishing to obtain a cryptocurrency license must provide a detailed business plan for at least two years.