COREDO > Crypto Licence in Estonia

Crypto Licence in Estonia

Estonia was one of the first EU countries to establish a legal framework for cryptocurrency businesses and digital asset regulation. Today, it is among the most developed European jurisdictions for obtaining a CASP licence under the MiCA regulatory framework.

Since 2016, COREDO has been assisting clients with obtaining crypto licences in Estonia, providing full support — from project assessment to regulator communication and post-licensing services.

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Cost of the service
from 36 000 EUR

Regulatory Framework

Estonia, as a European Union Member State, applies the unified European rules for the regulation of cryptocurrency activities. The regulatory framework is based on two key documents:

MiCA Regulation (Markets in Crypto-Assets Regulation, EU 2023/1114) is a unified regulatory act of the European Union establishing requirements for the licensing of Crypto-Asset Service Providers (CASP), consumer protection, transparency of digital asset operations and prevention of market abuse. The MiCA Regulation became fully applicable on 30 December 2024.

DORA Regulation (Digital Operational Resilience Act, EU 2022/2554) is an act on digital operational resilience aimed at strengthening the cybersecurity of financial organisations, including cryptocurrency companies. DORA requires CASPs to implement IT risk management systems, conduct regular resilience testing and monitor the performance of third-party IT providers. It has been applicable since 17 January 2025.

At the national level, Estonia adopted the Crypto-Asset Market Act (Krüptovaraturu seadus, KrüTS), which entered into force on 1 July 2024. This law defines the licensing procedures, supervision mechanisms and transitional provisions for cryptocurrency companies operating in the country.

Supervision of compliance with legislation and oversight of the cryptocurrency market is carried out by the Estonian Financial Supervision Authority — Finantsinspektsioon (EFSA). Since 1 July 2024, EFSA has been the sole authority authorised to issue, revoke and supervise CASP licences in Estonia.

Transitional Period

Previously issued VASP licences (through the Financial Intelligence Unit — FIU) remain valid until 1 July 2026, provided that the company submitted an application for a new CASP licence to EFSA by 30 December 2024. After 1 July 2026, all supervisory powers will be fully transferred to EFSA — there is no automatic conversion of legacy licences.

Types of Crypto Licences in Estonia

Licences for crypto-asset service providers under MiCA are divided into three main classes:

CASP Class 1

Covers the following activities: execution of orders for the purchase of crypto-assets, placing crypto-assets on the market, reception and transmission of orders, advice on crypto-assets, management of crypto-asset portfolios and crypto-asset transfer services. Minimum own funds — EUR 50,000.

CASP Class 2

Covers all Class 1 services, as well as custody and administration of crypto-assets on behalf of clients, exchange of crypto-assets for fiat currencies and exchange of crypto-assets for other crypto-assets. Minimum own funds — EUR 125,000.

CASP Class 3

Covers all Class 2 services, as well as the operation of trading platforms for crypto-assets. Minimum own funds — EUR 150,000.

In addition to CASP licences, Estonia also provides authorisations for stablecoin issuers: Asset-Referenced Tokens (ART) and E-Money Tokens (EMT). Authorisation conditions for issuers are determined individually — contact COREDO specialists for further details.

Advantages of Obtaining a Crypto Licence in Estonia

Estonia offers a number of competitive advantages for cryptocurrency companies choosing this jurisdiction for licensing:

Access to the European Union market (passporting).

A CASP licence issued by EFSA is a full MiCA licence and grants the right to provide services in all 27 EU Member States without obtaining additional authorisations. This gives the company direct access to the single European market.

Advanced digital infrastructure.

Estonia is a global leader in e-governance. The e-Residency programme enables non-residents to remotely establish and manage a company, sign documents with a digital signature, submit reports online and interact with government authorities electronically.

Favourable tax environment.

Estonia operates a unique corporate tax model: undistributed and reinvested profits are not subject to corporate income tax (0%). Tax at a rate of 22% is charged only upon the distribution of dividends, which significantly improves the company’s cash flow.

Transparent regulatory framework.

Clear and understandable licensing requirements based on the unified European MiCA regulation simplify the preparation and submission of the application.

Mature cryptocurrency regulatory market.

Estonia is one of the first EU countries to have begun regulating cryptocurrency companies. The EFSA regulator possesses extensive experience working with cryptocurrency projects, ensuring a predictable and professional licensing process.

High level of trust.

Cryptocurrency companies licensed in Estonia are treated on a par with traditional financial institutions, which enhances the level of trust from banks, payment providers and clients.

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Requirements for CASP in Estonia

To obtain a CASP licence in Estonia, the applicant company must meet a number of mandatory requirements:

Minimum Capital

The amount of minimum own funds is determined by the licence class: Class 1 — EUR 50,000, Class 2 — EUR 125,000, Class 3 — EUR 150,000. The share capital must be fully paid up in cash and held in a bank account within the European Economic Area (EEA).

Company Management

The applicant must demonstrate the qualifications and impeccable reputation of the members of the management body. Key requirements include: at least two members of the board; at least one of them must be a resident of Estonia; confirmation of good repute (criminal record certificate); at least three years of experience in a managerial position; at least three years of experience in the cryptocurrency sector. Qualifications are confirmed by diplomas, certificates and relevant documents.

Physical Office

The company must have a registered physical office on the territory of Estonia.

AML Officer

The designated Anti-Money Laundering Officer (AML Officer) must possess knowledge and experience in the field of AML/CFT, have an official place of employment in Estonia, and must not hold a similar position in other companies. The candidacy is subject to approval by the regulator.

Financial Audit

CASPs in Estonia are required to undergo an audit of financial statements conducted by an external auditor.

Segregation of Client Assets

The company must ensure the separate storage of clients’ funds and crypto-assets: clients’ crypto-assets — in separate wallets; clients’ fiat funds — in segregated bank accounts.

Cost of COREDO Services

The cost of comprehensive support for obtaining a CASP licence in Estonia ranges from EUR 36,000 to EUR 56,000 + VAT. The service includes three main modules:

01. Initial Project Assessment

EUR 5,000 + VAT

Analysis of the business model and submitted documents.
Identification of potential issues and risks.
Development of an individual plan for preparing the CASP licence application.
Estimation of timelines, the required level of specialist involvement and the preliminary cost of the project.

02. Establishment of a Legal Entity in Estonia

EUR 2,000 + VAT

Preparation of documents for company registration (physical or remote registration available).
Provision of a registered office for one year.
Payment of state fees.
Registration of the company in accordance with Estonian law.
Obtaining the necessary business permits (excluding the CASP licence).
Translation of documents.

03. Application Preparation and Interaction with EFSA

from EUR 29,000 to EUR 49,000 + VAT

Development of the complete package of documents for submission to Finantsinspektsioon.
Consideration of business specifics and the selected service classes.
Support throughout the licensing process.
Monitoring of the review status.
Prompt provision of additional data at EFSA’s request.
Open communication with the regulator until a decision is made.

The final cost depends on the results of the initial assessment, the required CASP service classes and the level of involvement of COREDO specialists.

Payment Terms

Payment for services is made in stages:

Stage 1 — Advance payment (40% of the cost).

Paid before the preparation of the application and documents begins.

Stage 2 — Interim payment (40% of the cost).

Paid after the application and documents have been approved, immediately before submission to EFSA.

Stage 3 — Final payment (20% of the cost).

Paid after the regulator’s decision on the application has been received.

List of Documents for Submission to EFSA

To obtain a CASP licence, the following package of documents must be prepared and submitted to Finantsinspektsioon (all documents are submitted in Estonian):

Documents on management and shareholders. Identity document (passport, ID card — scan of both sides), proof of residential address, proof of source of funds (bank statement for 6 months or tax declaration), completed and signed KYC forms, curriculum vitae (CV), diplomas and certificates confirming qualifications and experience.

Business plan and financial plan. A three-year programme of activities, including a list of crypto-assets, a description of target markets and marketing methods.

Proof of capital contribution. A bank statement confirming the availability of share capital in the account.

Corporate governance and internal control documents. The organisational structure of the company, a list of key personnel with CVs and confirmation of experience, internal control policies and procedures.

Risk management policies. Documents describing the mechanisms for identifying, assessing and managing risks, including anti-money laundering (AML) and combating the financing of terrorism (CFT).

Technical documentation. A description of IT systems, DLT infrastructure and cybersecurity measures, including an audit by an independent specialist.

Asset segregation policy. A description of the mechanisms for the separate storage of clients’ crypto-assets (separate wallets) and clients’ fiat funds (segregated bank accounts).

Custody and administration policy (for CASP Class 2). Documents governing the secure storage of crypto-assets, risk identification and outsourcing conditions.

Trading platform rules (for CASP Class 3). Conditions for admission and trading, a system for monitoring and preventing market abuse, fee structure.

Commercial policy and pricing (for CASP Class 2). Principles of non-discriminatory interaction with clients, methodology for calculating the value of crypto-assets.

Order execution policy (for CASP Class 1). Rules for the execution of client orders, quality of execution monitoring.

Confirmation of adviser qualifications (for CASP Class 1). Documents confirming the knowledge and experience of employees providing advisory services or managing portfolios.

Description of crypto-asset transfer services (for CASP Class 1). Detailed information on the types of crypto-assets and client identification procedures.

White paper (if required). A technical document for cases provided for by MiCA.

Procedure for Obtaining a CASP Licence in Estonia

Initial Project Assessment

COREDO specialists analyse the client’s business model, review the submitted documents and assess compliance with AML/CFT requirements. The timelines for preparing the application, the required level of specialist involvement and the preliminary cost of the project are determined. Duration: approximately one week after receipt of all necessary information.

01

Establishment of a Legal Entity in Estonia

Once all conditions have been agreed, COREDO registers a legal entity in Estonia in accordance with the client’s requirements. All necessary documents are prepared and submitted. Duration: approximately two weeks from the date of data provision.

02

Preparation of the Application and Documentation

Together with the client, COREDO specialists develop the complete package of documents for submission to EFSA. The specifics of the business and the selected CASP service classes are taken into account. Duration: approximately two months depending on the completeness of the information provided.

03

Submission of the Application and Interaction with EFSA

After the application has been submitted, COREDO supports the licensing process: monitoring of the review status, prompt provision of additional data at EFSA’s request, and communication with the regulator until a decision is made. EFSA carries out a preliminary completeness check within 25 working days, followed by a qualitative assessment of the application within 40 working days.

04

EFSA Decision

The average review period for a CASP licence application is three to six months. After a positive decision has been made, the licence is registered in the EFSA register.

05

Total duration of the process: from preparation to licence issuance — approximately 5–9 months.

Our Experts

Obtaining a CASP licence in Estonia is a process that requires in-depth knowledge of European and national legislation, experience in interacting with the regulator and an understanding of the specifics of the cryptocurrency market. COREDO specialists have been working in the field of financial and cryptocurrency licensing since 2016, providing clients with comprehensive support at every stage.

Pavel Kos

Head of Legal at COREDO. Has been with the company since 2017 and has headed the legal team since 2020. Specialises in the licensing of cryptocurrency and financial companies across EU jurisdictions, strategic planning and client support.

Basang Ungunov

Lawyer at COREDO. A specialist in civil law with a Master of Laws (LLM) qualification. Has been with COREDO since 2022, providing legal preparation of documentation for licensing and interaction with regulatory authorities.

Frequently Asked Questions

Which regulator issues the crypto licence in Estonia?

Since 1 July 2024, CASP licences in Estonia have been issued by Finantsinspektsioon (EFSA) — the Estonian Financial Supervision Authority. Previously, licensing was carried out through the Financial Intelligence Unit (FIU), but with the adoption of the Crypto-Asset Market Act (KrüTS), all powers were transferred to EFSA.

How much does it cost to obtain a CASP licence in Estonia?

The cost of comprehensive support for obtaining a CASP licence in Estonia with COREDO starts from EUR 34,000 + VAT. The final price depends on the results of the initial assessment, the selected service classes and the level of specialist involvement. The full range is from EUR 36,000 to EUR 56,000 + VAT.

What is the minimum capital required for a CASP licence?

The minimum own funds are determined by the licence class: Class 1 — EUR 50,000, Class 2 — EUR 125,000, Class 3 — EUR 150,000. The capital must be fully paid up and held in an account within the EEA.

How long does it take to obtain a CASP licence in Estonia?

The entire process — from the initial assessment to the regulator’s decision — takes approximately 5–9 months. The preparatory phase (assessment, company registration, document preparation) lasts approximately 3 months, and the review of the application by EFSA takes 3 to 6 months.

Is it possible to manage a company in Estonia remotely?

Estonia provides a well-developed digital infrastructure, including the e-Residency programme, which allows managing a company, signing documents and submitting reports online. However, to obtain a CASP licence, a physical office and at least one Estonian resident on the board are required.

Does an Estonian CASP licence grant the right to operate in other EU countries?

Yes. A CASP licence issued by EFSA is a full MiCA licence and provides the right of passporting — the ability to provide cryptocurrency services in all 27 EU Member States without obtaining separate licences in each country.

What tax advantages does Estonia offer for cryptocurrency companies?

Estonia operates a unique corporate tax model: undistributed and reinvested profits are taxed at a rate of 0%. Corporate income tax (22%) is applied only upon the payment of dividends. This creates a significant advantage for companies directing profits towards business development.

What happens to previously issued VASP licences in Estonia?

VASP licences issued by the Financial Intelligence Unit (FIU) remain valid until 1 July 2026. To continue operations after that date, the company must obtain a new CASP licence from EFSA. There is no automatic conversion of legacy licences.

Get a CASP Licence in Estonia with COREDO

The cryptocurrency sector is developing rapidly, and regulatory requirements are constantly evolving. If you are planning to obtain a CASP licence in Estonia, contact COREDO specialists — we will provide professional support at every stage of the process.

Our expert will contact you and explain how to obtain a licence for your business without unnecessary delays.