#cryptolicenseestonia

As per the yearly report, 667 fresh licenses for exchanging genuine money for cryptocurrency were issued in Estonia in 2019. As it is evident for all those associated with the crypto arena, around 500 licenses were cancelled in Estonia. The prime reason behind this revoking is because most of the companies cited above never started operating. Thus, the companies need to remain aware of the regulations concerned with Estonia Cryptocurrency Exchange License.

Since when changes made

The crypto service providers need to stay updated with the changes introduced. To be specific, the changes with Estonian law were made on 1st July 2020. It is thus essential for the companies to comply with the fresh requirements well. The following sections provide a detailed insight into this.

Regarding regular license

As per the fresh regulation regarding Estonia Cryptocurrency Exchange License, one license can take the place of a couple of earlier available licenses. Here the license refers to the virtual currency service provider. The two earlier existing licenses here include the one meant for offering virtual currency wallet service and those offering services of exchanging cryptocurrency for fiat currency.    

Regarding document submission

The latest changes make a whole range of documents concerned with licenses to be deposited through Notary Public. Else, it can be submitted through electronic mode or business registers as well.

The new rule regarding the resolution of application states that upon the discretion of FIU, the time of decision making on applications regarding the license can be stretched to 120 days. It is here to note that the same was 60 days earlier.

Norms regarding fee

As far as fees are concerned, the charges applied will be 3300 Euro, rising from the ongoing price of 345 EUR. 

Regarding the reputation affairs

Those who are associated with the important positions in the cryptocurrency service segment are expected to maintain their reputation well through these latest changes of laws. However, it is important for service providers to understand the Fit and Proper process. Well, it is true that the Fit-and-Proper approach has always been a familiar aspect of the arena of finance.

The prime aim behind this is meant for ensuring that the reputation and, specifically, the experience of those who handle your financial affairs are thoroughly acknowledged and meets well with the highest standard. It is also applicable for the finance available in the virtual currency form. It’s the verification that provides greater assurance for the service providers.

In recent years, blockchain technology and cryptocurrency exchanges are revolutionizing the financial sector. More entrepreneurs and investors are showing interest to start a blockchain company. When it comes to blockchain and cryptocurrency, Estonia provides seamless business opportunities for entrepreneurs and investors. However, to successfully establish your business, legalization of your cryptocurrency exchange is important. For this, you need to have the Estonia crypto exchange license. The process of applying for the cryptocurrency license is quick and easy in Estonia, thereby providing the businesses with numerous benefits.

Having the cryptocurrency license enables the investors and entrepreneurs to enjoy various corporate tax exemptions that are levied on reinvested profits. It also allows them to easily access the different government services and connect with or set up EU bank accounts without much hassle. Here are some of the prominent benefits of applying for the crypto exchange license in Estonia.

·         Simple and Easy KYC Process

While availing cryptocurrency license, one of the major challenges faced by most businesses is completing the KYC process. Client onboarding can be daunting for businesses. However, this is not the case in Estonia. Based on different jurisdictions, the KYC process or client onboarding process can be time-consuming and may require some additional efforts. In certain cases, it may result in delays and even forgoing of the account application process. But in Estonia, the KYC (Know Your Client) process and rules are comparatively easy and not like the other Europe regions. This enables the entrepreneurs and investors to easily complete the entire KYC process in much less time and avail the cryptocurrency license.

·         No Physical Office is Required

Another major benefit of applying for the crypto exchange license in Estonia is that you can easily receive the license even without having a physical office space. When it comes to local employment, the Estonia FIU requires only a single director of the blockchain company to be based in Estonia physically. The minimal requirement enables the entrepreneurs and investors to get the license granted much quickly. Moreover, the operating costs involved in obtaining the cryptocurrency license in Estonia are much less in comparison to the other European region. All you need to ensure is the local presence of a single director of the company.

·         Relatively Small Paid Up Capital

When applying for Estonia crypto exchange license, one of the main concerns of businesses is the need for a significant amount of paid-up capital. However, Estonia offers significant benefits in this case also. For entrepreneurs who desire to enter the exchange market, availing the license in Estonia is the best option.  With a reasonable capital commitment, getting the licence becomes easy and stress-free for the new business owners.