How to get a cryptocurrency license in Estonia in 2020?
Since March 2020, the rules for obtaining cryptocurrency licenses in Estonia have changed significantly. In addition, the conduct of the activities of Estonian companies with crypto licenses will now take place under the closer supervision of the Estonian Financial Intelligence Service (Financial Intelligence Unit). Is it possible to launch crypto projects in Estonia in the new conditions and what to prepare for - you will find all the answers in the review of the latest practice in Estonia from Antwort Law specialists.
What is an Estonian crypto license?
Estonia was one of the first countries to provide businesses with the opportunity to obtain crypto licenses. Initially, obtaining it was not perceived by the market as a significant advantage, but over time (and taking into account recent changes), it can be unequivocally stated that the cryptocurrency license in Estonia has become a real "quality mark" for its holders.
Licensing of cryptocurrency activities in Estonia is carried out by the Estonian Financial Intelligence Unit, which is a structural unit of the Estonian Police, but operates independently.
Currently, a single cryptocurrency license is issued in Estonia for cryptocurrency exchange activities (a crypto exchange in Estonia), but this has not always been the case. Previously, a cryptocurrency license in Estonia was issued separately for the exchange of cryptocurrencies (without the right to open wallets), and for the opening of cryptocurrency wallets. Now both types of activity in Estonia can be carried out under a single license.
Conditions for obtaining a cryptocurrency license in Estonia
The current requirements for Estonian companies have become much higher than a year ago, but at the same time, their implementation is still not very difficult for a real business. According to the new requirements of the Estonian regulator, a cryptocurrency company in Estonia must meet the following requirements:
1) Rent an individual real office.
If your company plans to use co-working or rent an office together with other companies, then obtaining a cryptocurrency license is at risk.2) A board member of your cryptocurrency company cannot be a board member of other companies at the same time.3) Both members of the Management Board must be in Estonia.
If the second board member does not reside in Estonia, you will probably now also be denied a cryptocurrency license. In addition to the above innovations, there is a requirement to have their own AML officers and a full set of relevant policies.
Antwort Law specialists will help you understand all the details and requirements for obtaining an Estonian license to work with cryptocurrencies.
The cost of obtaining a crypto license in Estonia
To launch any business project, it is important to take into account future costs. Unlike the launch of conventional financial companies, the costs of creating and maintaining an Estonian company with a crypto license will be relatively low.
The amount of the authorized capital of an Estonian company required to obtain a cryptocurrency license is 12,000 euros. It must not only be declared, but also actually deposited by the founders to the company's account. The authorized capital cannot be fully attributed to the costs of obtaining a license in Estonia, since it actually remains at the disposal of the company.
The direct costs of obtaining a crypto license in Estonia can be divided into two groups. The first group is one–time expenses that take place directly at the stage of company creation. This category includes legal expenses for setting up a company, preparing the necessary policies and documents, as well as supporting the process of obtaining a crypto license in Estonia. As a rule, such expenses amount to about 25,000- 30,000 euros.
The second group of expenses is fixed expenses that a licensed company in Estonia will incur at certain intervals throughout its existence. This can include staff costs, accounting and office rent. Of course, the needs of different companies on this point may differ, but if you take a minimum "package", then the prices in Estonia will pleasantly surprise you. For example, renting an individual office in Estonia can cost from 6000 euros per year.
Practice shows that it is difficult to find two identical crypto projects, and each project has its own needs. Antwort Law specialists always study the client's project in detail before launching in order to make the most detailed cost calculation taking into account all related costs.
Are you planning to get a cryptocurrency license in Estonia? Entrust the legal support of your project to Antwort Law – we not only support the entire turnkey licensing process, but also remain a reliable support for your company in its subsequent activities.