Advantages of cryptocurrency license in Estonia

Advantages of cryptocurrency license in Estonia

Estonia is considered one of the best jurisdictions for IT products, which offers the most lenient and loyal conditions for those who wish to obtain a license permit to conduct activities based on or related to cryptocurrencies. Estonia is especially supportive of startups starting to work in the blockchain technology industry. To put it another way, a cryptocurrency license is an official authorization to conduct a regulated cryptocurrency business.

Cryptocurrency license in Estonia: pros

Literally, every week, several new trading and cryptocurrency platforms are created in this industry. Most of these startups are licensed in the Estonian jurisdiction. The reason for this is also that Estonia offers a very fast procedure for obtaining a cryptocurrency license compared to other countries. Our experts are ready to provide you with support and full support throughout the entire procedure for preparing the necessary documents and obtaining permission from legal representatives to start your cryptocurrency business.

The National Financial Intelligence Unit is the authority that is responsible for issuing cryptocurrency licenses within the Estonian jurisdiction. In order to carry out activities in the cryptocurrency industry, as it is spelled out in the Law on the Prevention of Illegal Turnover of Funds and Investment in Terrorist Acts, a license is needed, which is called a single one. This category covers the following services: virtual exchangers and wallet service providers for storing digital currency.

  1. Custody and cryptocurrency wallet services. This category includes the storage and creation of encrypted keys for consumers.
  2. Cryptocurrency exchanges – platforms through which you can exchange fiat money for cryptocoins and vice versa, as well as exchange cryptocurrencies among themselves.

Advantages of having a cryptocurrency license in an Estonian jurisdiction

Many cryptocurrency companies do their business within Estonia. The reason for this is a number of some rather beneficial factors.

First, a cryptocurrency company registered in Estonia benefits significantly from accurate and fair regulation. In accordance with the Law, the rules that are provided to a licensed cryptocurrency company are aimed at making it clear what is prohibited and what is allowed.

In addition to the above, Estonia has created a rather favorable environment for doing business in general. Almost all aspects related to the management and establishment of an Estonian organization can be fully carried out online from anywhere in the world. This can be done through the e-Residency program.

More importantly, there is no corporate tax in Estonia. It is replaced by the need to pay 20% corporate tax on distributed profits.

Services for the creation and maintenance of the functioning of a cryptocurrency wallet

This wallet is a digital tool used online or offline, which is based on a public key cryptographic mechanism, used to securely send and receive crypto coins.

There are 2 types of wallets. The first is the cold look, that is, a wallet that is self-contained and is a hardware and paper wallet. The second kind is hot, that is, such, which is an online storage. The main difference between a cold wallet and a hot wallet is that money is stored on it without access to the Internet. Hot instruments also include multicurrency and regular wallets.

The unified licensing authorization in the Estonian jurisdiction covers services for the provision of hot and cold wallets.

If you need more details about cryptocurrency license in EU, contact our specialists!

For details: Julia.z@eternitylaw.com / Telegram @juliazhil

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