How to Get Your Cryptocurrency License in Estonia?May 5, 2022, 4:19PM
The government of Estonia is attempting to become a crypto hub by providing opportunities for those who are willing to make the effort.
Getting your cryptocurrency license in Estonia is easier said than done. The country is home to only a handful of crypto-friendly regulation authorities, making the process of getting your license difficult for many. However, the government of Estonia is attempting to become a crypto hub by providing ample opportunities for those who are willing to make the effort. The country is already ahead of many in the adoption of e-government, e-ID, and Cryptocurrency. The country is therefore an ideal region for the adoption of blockchain technology. Cryptocurrency is becoming more popular every day, especially among the younger generation. In fact, it is estimated that by 2023, the cryptocurrency market will be worth $13 Trillion. If this doesn’t convince you of the growing potential of the space, we don’t know what will. Getting your crypto license in Estonia can be a challenge for some, but it’s not impossible.
What is a Cryptocurrency License?
A cryptocurrency license is an authorization issued by the Estonian Financial Intelligence Unit (FIU) to individuals or companies that want to manage funds related to digital assets. It is not mandatory to obtain a cryptocurrency license to start a cryptocurrency business. However, it is required to use digital assets to perform financial transactions. One must also apply for this license if they are involved in a cryptocurrency-related business as an agent or representative unless they are a citizen or permanent resident of Estonia and are acting in the capacity of a person in the business’s country of residence or origin.
How to Get Your Cryptocurrency License in Estonia
To get your cryptocurrency license in Estonia, you must first register as an individual or a company as a cryptocurrency business. After that, you must complete a basic online course on cryptocurrency regulations and compliance standards. You must also pass a cryptocurrency exam in order to obtain your license. The cost of the exam depends on the number of applicants taking the test. The cost is usually between $150 and $350 USD. If you pass the exam, you must then apply for the license at the FIU. The application usually takes around six months to complete. The FIU currently accepts applications for cryptocurrency licenses only. Once you get your license, you can legally trade, use, and manage cryptocurrency assets in Estonia.
The State of Cryptocurrency in Estonia
The State of Cryptocurrency in Estonia. When it comes to cryptocurrency regulation in Estonia, things are rather bright. The country is currently one of the most progressive in the world when it comes to the use of blockchain technology. It is also one of the few countries to have a clear regulatory framework for cryptocurrencies. - Cryptocurrency Exchanges: In October 2017, the Estonian government passed the “Digital Financial Assets Act.” This bill effectively legalizes cryptocurrency exchanges in the country. Under the new legislation, cryptocurrency exchanges can operate in the country as long as they follow certain rules. - ICOs and Token Sales: ICOs in Estonia are regulated as equity offerings. This means that the company issuing the tokens needs to comply with securities law. However, there is no law that directly regulates ICOs. However, the government and regulators in the country have taken a very cautious approach. - DLTs: Estonia has been a pioneer when it comes to the adoption of blockchain technology. It was the first government to use a blockchain in its land registry system. - DLT Applications and Projects: Estonia is not only a blockchain hub, but it is also a blockchain-friendly country. It is one of the few countries that has successfully funded blockchain projects through public grants. - Maltese Blockchain-Friendly Comparison: When it comes to cryptocurrency regulation, Estonia is definitely one of the leaders in the region. It has been very progressive in its approach to cryptocurrency regulation.
Step 1: Register as an Individual or a company
Register as an Individual or a company as a cryptocurrency business in Estonia. The registration process is simple. You need to submit an application to the Commercial Register. The Commercial Register also accepts applications from foreign companies. Once registered, you can start trading cryptocurrencies as a trader. You can also register a company to start a cryptocurrency exchange. If you are a foreign investor looking to invest in Estonia, you must first obtain a residency permit. Once you get a residency permit, you can then invest in the country’s cryptocurrency market.
Step 2: Get Certified by a competent authority
Once you have registered as a cryptocurrency business, you must get certified by a competent authority. This authority can be a financial institution or an auditor. You must submit your application to them. The authority will then review your application and issue a certificate if they are satisfied with your application. You must then submit this certificate with your license application. The Financial Intelligence Unit (FIU) will then verify your certificate and issue a license if they are satisfied with your application.
Step 3: Apply for a crypto license
Once you get your license, the next step will be to open a cryptocurrency account at a bank or a crypto exchange. There are currently two cryptocurrency exchanges operating in Estonia: Probit Exchange and Livecoin Exchange. Once you have opened an account, you must then deposit funds in the account. The funds must be cryptocurrency and must be from an approved source. The approved source must be either a cryptocurrency exchange or a bank account approved by a cryptocurrency exchange. The amount you deposit must be over a certain amount. You can then use these funds to buy and sell cryptocurrencies. You can also withdraw funds from your account.
Getting your cryptocurrency license in Estonia is easier said than done. The country is home to only a handful of crypto-friendly regulation authorities, making the process of getting your license difficult for many. However, the government of Estonia is attempting to become a crypto hub by providing ample opportunities for those who are willing to make the effort. The country is already ahead of many in the adoption of e-government, e-ID, and Cryptocurrency. The country is therefore an ideal region for the adoption of blockchain technology. Now that you know how to get your cryptocurrency license in Estonia, you may want to consider the benefits of holding a cryptocurrency in the country. According to a recent study, Estonia is the best country to hold your cryptocurrency.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.