Cryptocurrency license in Estonia

Cryptocurrency license estonia

 

Our customers often ask me about finding civil jurisdiction for their cryptocurrency business.    We heard about cryptocurrency licenses from Malta,  Thailand, Singapur.  Every country has its own set of regulations.

 

Application for a crypto license in Estonia seems to be more comfortable and cheaper than the rest of the world. 

 

The most know incentive is as follows:    only 30 days for positive or negative decision taken by the Financial Intelligence Unit,  low rate state fee and simple documentation.

 

You don’t need to travel to Estonia if you are the holder of e-Residency card.

Cryptolicenses in estonia

cryptocurrency exchange license

The goal is the opening of cryptocurrency exchange services (f.e Poloniex). For this purpose, the customers need a special license for providing a cryptocurrency exchange service. The amount of state fee is 345 EUR, but the authorities have the plans to increase of fee to 3300 EUR.

cryptocurrency wallet license

The goal is storing and sharing the digital wallet service for final clients.  The cryptocurrecny wallet service license applies to hot & cold wallet.

how long takes the process

According to estonian law process takes ~ 30 days

Application review
Financial Intelligence Unit 100%

Success rate

1 %
clients approved

The vast majority clients are approved by FIU.  

1
days for licenes

If the client provides us with full documentation, can get the crypto license in a shorter time than 30 days.

Supporting documentation

We provide

You provide

  • Proof of no criminal record from local justice sworn translated, Apostilled (if needed) no older than 90 days.
  • Apostilled, notarised passport or EEA card
  • The CV with photo or LinkedIn extract
  • Beneficial owner lists and persons responsible for international sanctions
  • Detailed information regarding your business model and the services you provide for final clients.

Choose your plan

Applicable for cryptocurrency exchange license and wallet license.

Mini

1200
one time
  • AML/KYC/CTS internal rules writting
  • Translation to English or Estonian
  • Our guarantee: FIU will accept or we correct regulations
  • 1 hours assistance of our lawyer

Medium

3000
one time
  • Your OU company is registered and you have e-Residency card
  • AML/KYC/CTS internal rules writting
  • We will prepare 2 x application to FIU
  • We will monitor progress and we will have constant contact with FIU

Exclusive

5000
one time
  • You will get OU company with virtual adress, contact person for 1 year and introduction to accounting services
  • You will get AML/KYC/CTS procedure
  • You will get ready made licenses - providing virtual wallet and cryptocurrency exchange
  • You will provided with PSP bank account for cryptotrading

FAQ

Most frequent questions and answers

Criminal records of all board members, shareholders and UBOs (apostilled, not older than 3 months, from country of citizenship)
CVs
Passport copies.

It takes up to 30 days from day of submission to get the answer from the FIU regarding the licenses. Once the licenses have been granted, you have to start providing the services within 6 months.

State fee is 345€ / per one license . If you will need 2 licences – you will pay 690€. You can purchase our ready made OU company with issued licences. State fees are included in price.

The licenses are issued by the Financial Intelligence Unit of Estonia Company holder of the licenses could perform the following activities: 1. Exchange virtual currency to fiat currency2. Exchange fiat currency to virtual currency 3. Exchange virtual currency to another virtual currency 4. Keep and store virtual currency on behalf of your clients 5. Transfer virtual currency between customer’s wallets 6. Keep fiat currency on behalf of the customer for some time in order to make exchange for cryptocurrency.

Estonia has concluded legal aid agreements with the Republic of Lithuania, the Republic of Latvia (State Gazette II, 1993, 5), the Republic of Poland (State Gazette II 1999, 4, 22), Ukraine (State Gazette (RT II 1995,13/14, 63) and with the Russian Federation (State Gazette II, 1993, 16, 27).
In above countries Apostille is not mandatory . If you are from other countries, you should include Apostilled documents.

You will pay tax from your net prfit, that is calculated based on the transaction as the difference between the selling price and the purchase price.

You do not need an e-Resident card. All you need to do is give us the power of attorney to set up a company and then the power of attorney to apply for a cryptocurrency license. The application is submitted to a local notary.

It depends on your previous education history and kind of gained experience regarding AML issues.  From 17 April 2019 FIU has changed rules of approving of new license holders and in relation to the new procedures, they have right to interview potential candidates, acting as “compliance officers” in order to verify personal characteristics, skills and experience of these persons.

AML & KYC & CTS

We offer comprehensive training concerning AML/KYC/CTS procedure in the cryptocurrency services.  We work with people with higher education in finance and more than ten years of experience in the largest banks, especially in the Anti Money Laundering departments

For every person, who is applying for a cryptocurrency license, we prepared tailor-made training from Anti Money Laundering Rules.     We will learn you all AML matters as Estonian AML Regulation stipulates.

We offer additional services under the name “Compliance Officer” especially for custommers, who are interested in the obtaining of crypocurrency service license.   This solutions is avaiable only for legal & transparent businesess.  We need to analyse your business models and know you as our custommers. 

Compliance officer

is ready to work for your business

state fee will increase soon

The Estonian Parliament will adopt bill 

The Estonian Parliament will adopt the bill, that will make that process of obtaining licenses will be difficult and more expensive.

Government plans change the following rules:

1) To increase state fee from 345 EUR to 3300 EUR 

2) To extent process of approving client from 30 to 90 days

More information here:

https://www.rahandusministeerium.ee/en/news/granting-virtual-currency-activity-licences-set-become-tougher-under-new-bill

All licensed businesses should update your application details and outstanding delivery document up to 31.12.2019.   Consulting companies predict the cost of obtaining licenses will grow from 5000 to 10 000 EUR.

our experts are quoted in the biggest cryptocurrency media

Cryptocurrency media

"Estonian Consulting Firm Claims It’s Harder to Get a Crypto License Following Regulation"

"Estonian consulting firm Eesti Consulting OÜ has claimed that it is getting harder to get a cryptocurrency license in Estonia in a press release published on May 16."

Source: https://cointelegraph.com/news/estonian-consulting-firm-claims-its-harder-to-get-a-crypto-license-following-regulation
Cointelegraph
16/05/2019
INFOR.pl
15/07/2019

Elements of aml policy

The content of aml KYC CTS policy

mONEY LAUNDERING TERM

Money laundering means the concealment or disguise of the true nature, source, location, disposition, movement, right of ownership or other rights related to property derived from criminal activity or property obtained instead of such property;
the conversion, transfer, acquisition, possession or use of property derived from criminal activity or property obtained instead of such property to conceal or disguise the illicit origin of the property or of assisting a person who is involved in criminal activity to evade the legal consequences of his or her activity.

MINIMUM REQUIREMENTS

Client identifications procedures:  When entering into a lasting business relationship, or  When performing a single transaction or deal, or amounts to 15 000 EUR (or equivalent), whether that transaction is carried out in a single operation or in several operations which appear to be linked (…) Establishment of purpose of business relationship , Identification and Verification of Ultimate Beneficial Owner (UBO) – who owns more than 25% shares in the company? Who is entering into business relationship with me? Reporting of suspicious circumstances and transactions,  AML controls, regular Anti Money Laundering Trainigs.

KYC (Know Your Client) Natural Persons Identification Information:

  • Name (ID card/Passport/Driving License etc.)
  • Permanent address (evidence – Utility bill, bank statement, government
    letter less than 90 days old)
  • Date and place of birth
  • Nationality
  • Residence
  • An official personal identification number from unexpired official
    documents

KYCB – (Know Your Clients' Business) Legal Entities Identification Information:

  • Certificate of Incorporation
  • Memorandum & Articles of Association
  • Proof of address of the company
  • Legal approval regarding the authorized signatories of the company
  • List of UBOs/Shareholders/Directors/Signatories
  • Declaration for disclosure of UBO
  • Passport copies and proof of addresses of
  • UBOs/Shareholders/Directors/Signatories
  • Any applicable licenses if the business is regulated

Record keeping

Records must be kept of all transaction data and data obtained for the purpose of identification, as well as of all documents related to money laundering topics (e.g. files on suspicious activity reports, documentation of AML account monitoring, etc.). Those records must be kept for a minimum of 5 years following cessation of the relationship. The information is stored for each client and, if necessary, is disclosed to the specialized services. The database contains daily archive of all operations, movement of funds and complete information about all clients (merchants, cardholders etc.) and the state of the products/services that have been provided.

We help you prepare the aml policy

WE HELP YOU PREPARE THE AML POLICY We offer our assistance in the preparation of the AML KYC CTS policy for fintech, financial companies, cryptocurrency exchange companies.

Contact us