In the middle of 2020, the Estonian central authorities have amended the regulations related to the issuance of the Estonian cryptocurrency license by inserting new anti-money laundering provisions. This way, both the activities of companies and their clients is better protected.
Makhmud Efendi
— 4 min read
According to the Money Laundering and Terrorist Financing Prevention Act, an amendments have been made to crypto regulations in Estonia in order to establish stricter boundaries for companies applying for single cryptocurrency license in Estonia.
- Among such amendments, the minimum share capital for Estonian crypto-company was increased from €2,500 to €12,000 and now it must be paid in full before applying for a crypto-license. This amount can then be used to finance the future activities of the company.
- It is also important that an IBAN account is now required before submitting the application. Estonian banks do not accept applications of bank account opening for companies related to crypto activity, but it is OK for Estonian company to open an account with the European Electronic Money Institution authorized by Estonian Financial Supervision and Resolution Authority.
- One of the major changes is a new rule according to which the Board and Physical place of business must be located in Estonia. Also, the presence of a company director (who must have an Estonian residence) has become mandatory.
- The requirements for AML/KYC officers have significantly toughened. After applying for a crypto-license, the AML/KYC officer will have to undergo an interview with the FIU to confirm professional skills and suitability for the position.
- Apart from that, the state fee payable in favour of Estonian government has been increased from €345 to the amount of €3,300.
- Another change in the rules related to applying for Estonian crypto-license is that both types of permits will be available under the application for a Virtual Currency Service Provider License. The procedure has been simplified and for activities in the field of crypto services, in accordance with the Law on the Prevention of Money Laundering and the Financing of Terrorism, it is required to obtain a license called a single cryptocurrency license.
If you would like to register and open an Estonian cryptocurrency company, our AlphaLAW team can advise you on all the necessary procedure required to make this process as simple and fast as possible. Just contact us – our team of professionals is ready to start working with your case.
Task: Investor suitability: the Financial Intelligence Unit will conduct a comprehensive background check on the company owners.
Solution: Our team will prepare and file all necessary documents for you (including but not limited to CVs, personal documents, professional skills evidence and etc.)
Task: Registered address – an important requirement is that the registered address of the company and the activities are to be located in Estonia; the board must also be based in Estonia.
Solution: Our team will provide you with the service of physical office renting assistance. Moreover, we are going to assist your Board members to apply for an Estonian residence.
Task: The state fee for the Estonian crypto license is set to increase, from €345 EUR to €3,300.
Solution: Our team can provide complete details on the fees in force.
Task: The minimum share capital for Estonian crypto-company was increased from €2,500 to €12,000 and now it must be paid in full before applying for a crypto-license, but Estonian banks don't open accounts for crypto-companies.
Solution: We will assist you with the opening of account with the European Electronic Money Institution authorized by Estonian Financial Supervision and Resolution Authority. Thus, you will make share capital contribution and will have a reliable EU payment account for your company.
Taking into account the needs and regular queries of leads and customers from all over the world,AlphaLAW has developed a special package that includes all essential services allowing to obtain a crypto-license for Estonian company.
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