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How to Set Up a Crypto Exchange License in the EU: Estonia

Contributed by MAXCORP - Legal Department
16 August, 2018


Why is Estonia one of the Most Popular Crypto Jurisdictions in the EU?

Estonia is a small European Union country of just 1.3m people, but it is regarded as one of the world's most advanced digital nations. It is a widely recognised alternative to jurisdictions like Gibraltar, Singapore or Switzerland – only with lower costs.

Estonia has a favourable tax (e.g. 0% CIT) and legal environment for blockchain and crypto focused companies. The legal framework for crypto currencies was passed in a law in November 2017 and Estonia became one of the first European Union member-states to define the requirements for full compliance.

There are 2 official crypto licenses which can be obtained to conduct business worldwide:

  • Providers of a service of exchanging a crypto currency against a fiat currency (covers offering services for exchanging fiat to crypto, crypto to fiat and crypto to crypto)
  • Providers of a crypto currency wallet service (covers both hot and cold wallets)

More information about crypto licensing in Estonia: https://www.maxcorp.eu/eng/crypto/cryptocurrency-exchange-company-estonia/

How to apply for Crypto Currency Exchange and Wallet License in Estonia?

In order to successfully apply for the crypto license(s) first an Estonian private limited liability company has to be set up. Fortunately, The World Bank ranks Estonia 12th in its ease of doing business report and Estonia ranks 1st in the International Tax Competitiveness Index.

The formation of an Estonian company can be carried out remotely with no visit required and it usually takes about 1 week – we support with the full procedure. After the LLC company has been set up our legal team will apply for the license(s) on your behalf, all can be done remotely with no visit required and it takes up to 30 days. All legal documentation such as the AML and KYC policies are prepared by our legal team according to the legal framework.

Key points for LLC company formation in Estonia:

  • At least 1 shareholder. No restrictions to citizenship or residence.
  • At least 1 management board member. Foreign residents are allowed, no restrictions to citizenship or residence. Can be same as shareholder.
  • No secretary nor local physical office required (only local registered office and registered agent – MAXCORP holds the corporate services license to provide these services).

Required documentation for Crypto License(s) Application in Estonia:

  • Certified copy of passport and Power of Attorney
  • Description of planned business model and website address
  • CV's from all participants
  • Certificate of non-criminal record from the registry of convictions (not older than 3 months) for all participants

Company formation in Estonia and setup of Estonian crypto license(s) is fast and simple. Furthermore, Estonia offers an innovative e-Residency program, which enables to administer the company online, from anywhere in the world.Our legal team is available to consult in all matters and to propose the best path forward.

End-to-end setup of Crypto Company Structures in Estonia

MAXCORP® is a licensed service provider for company formations and corporate services, with a professional team in business since 1999. Our onsite legal team in Estonia offers a full range of corporate services, including end-to-end setup of Estonian blockchain and crypto company structures.

For more information and a free case evaluation please contact us at http://www.maxcorp.eu/eng/contact/

PROMOTION OFFER: By applying the promotion code "LOWTAX" MAXCORP will provide a – 10% discount on Estonian company formation service. Promotion applies only for Estonian private limited company formation service when ordered in bundle order with crypto licensing. Offer valid until December 31st 2018.




 


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