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

Contributed by MAXCORP - Legal Department
02 April, 2019


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 Malta, 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 in Estonia:

  • 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 16th in its 2019 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 you through the full procedure. After the Estonian Limited Liability 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 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.

Required documentation for Crypto Licence Application in Estonia:

  • Certified copy of passport and Power of Attorney
  • Description of planned business model and website address
  • Police certificate clearing the participants of any criminal records

Company formation in Estonia and setup of Estonian crypto licence(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 by visiting our website at https://www.maxcorp.eu/eng/




 


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