IT jurisdiction in Estonia, according to the practice of many companies, is one of the most accessible in terms of obtaining a license to carry out exchange operations using cryptocurrencies, which is important for the development of blockchain startups. A crypto license is an official permission that is created to regulate the business in the field of cryptocurrencies.
Every month there are more and more trading platforms, platforms that receive permits in Estonia. This is due to the simplified process of issuing licenses compared to other countries.
The local government agency responsible for issuing Estonia cryptocurrency exchange license is Rahapesu Andmebüroo. In order to operate freely within the framework of the current legislation, you need to obtain the permission of the “single cryptocurrency license”. At the same time, a license is needed to provide two main services, namely, the supply of wallets for virtual currencies, as well as services in terms of exchanging virtual currencies. Previously, it was necessary to obtain separate licenses, however, now it is combined into the Virtual Currency Service Provider License.
Benefits of crypto licensing in Estonia
A huge number of companies related to cryptocurrencies operate through Estonia for a number of reasons.
First, crypto companies are in an advantageous position due to precise and fair regulation. Licensed organizations receive all the necessary information on how to conduct their activities in order not to go beyond the law.
Secondly, thanks to the action of electronic residence, it is possible to control the activities of a business at a distance, from anywhere in the world. According to official statistics, today all companies working with cryptocurrencies, which are registered through Estonia, create more than 1 billion euros for the economy.
At the same time, we must not forget that companies registered in Estonia are not subject to income tax. More specifically, under the current taxation scheme, crypto companies remain in the black by reinvesting their profits without taxes.
Providing cryptocurrency wallets
A cryptocurrency wallet is a digital online and offline method based on cryptography that has a public key. Thanks to this, users get the opportunity to carry out secure transactions using cryptocurrencies in the public network.
All existing crypto-wallets can be divided into 2 types:
- Hot – which are used for online storage of cryptocurrencies.
- Cold – not connected to a common network, which are used for offline storage of cryptocurrencies in a large amount.
Hot-type crypto wallets are actively used for temporary storage of a small amount of cryptocurrencies, cold – for long-term storage of large amounts of money.
The license that is issued for cryptocurrencies in Estonia is issued for both cold and hot crypto wallets.
How to apply for a work permit in Estonia
A request for licensing a company carrying out various financial transactions with cryptocurrencies through Estonian law can only be the head of a crypto company. You can provide it in electronic form, however, for this you need to have an e-resident card. In this case, you need to visit a notary in Tallinn. Another option is to provide a power of attorney to our company www.internationallegalbridge.com. Thanks to this, you can save time, nerves, the company’s employees will do all the work for the head of the crypto business.
The official state fee for licensing a company working with cryptocurrencies is 3300 EUR. Payment of the fee is made to the Ministry of Finance of Estonia. After that, the process of deciding whether to grant a license to conduct a business related to the use of cryptocurrencies begins. It is handled by the Money Laundering Prevention Data Bureau. 60 working days are allocated for consideration of the application. Upon approval of the application, the license for the crypto-business is issued forever.