Obtaining a cryptocurrency license in Estonia

Today, many crypto organizations choose the Estonia crypto license because this jurisdiction has many advantages. Simplified taxation is in effect here, there is an excellent financial climate, and there are no complex requirements for the applicant. Today we want to discuss in more detail why this jurisdiction is so attractive and how to get a work permit here.

How much does it cost to get a work permit in this jurisdiction?

To get a crypto permit, you must be prepared to pay a relatively large fee. So, you need a state fee of 3,300 euros. This fee is fixed regardless of the size of the company. Earlier, the price was 10 thousand euros, but the government has significantly reduced this fee. Also, you need to deposit authorized capital in 100 to 250 thousand euros.

You can only do this with the help of a qualified lawyer. If you turn to our company  for help, the cost will depend on the services that you need:

  • Registration or purchase of an organization;
  • Assistance in paperwork;
  • Opening a bank account;
  • Checking the company’s readiness for licensing, and much more.

You can do some of the work yourself, for example, open a bank account or find an office, in which case obtaining a license will be cheaper. But, if you do not want to waste time or do not have the opportunity to spend a lot of time in Tallinn, then you can entrust all the difficult work to our specialists.

Basic requirements

If businessmen want to obtain a crypto license in Estonia, the organization must comply with the provisions of this jurisdiction.

The organization must have at least one owner and shareholder. It would be best if you also had a security specialist on your staff. The director of the organization and the security specialist must be residents of this jurisdiction and permanently live in this country. 

The authorized capital of this company must be at least 12 thousand euros. Thus, this jurisdiction is suitable not only for large corporations but also for relatively small start-ups.

Estonia-cryptocurrency

In addition, your company must comply with the KYC/AML policy. You are required to verify all personal data of clients, as well as to prevent fraud and money laundering on the part of clients and members of your team. It would be best if you had thoughtful tools to enforce this policy.

If businessmen are ready to work honestly and openly to comply with the law, they will not have problems obtaining a cryptolicense.

Why do crypto organizations seek permission to operate in this jurisdiction?

This country was previously part of the USSR and was the first to join the EU. How could it get such results in such a short time? The government of this country overcame corruption and created an excellent investment climate, which made it possible to attract investors from different countries. In addition, government agencies have done everything to develop the IT industry and established favorable taxation.

It set up the e-residency program, which allowed organizations to work remotely from around the world. This program brings in more than 1 billion euros annually. Every company here has to pay a tax of 20%, regardless of size, which makes this jurisdiction incredibly attractive for different crypto organizations.

Thus, this jurisdiction has many essential advantages:

  • Lack of corruption and redundant bureaucracy;
  • Low requirements for applicants;
  • Convenient taxation;
  • Perpetual permit.

In addition, obtaining a permit in this jurisdiction will give you the right to work legally throughout the EU.

Why is a permit needed?

In this jurisdiction, crypto organizations can operate legally only to obtain a work permit. Otherwise, all companies that do not receive a work permit will be recognized as fraudsters and fined, and the software will be blocked.

A permit in this jurisdiction makes your company more prestigious among investors and potential clients. Thus, it becomes much easier for companies that have received a work permit here to attract additional investments from different countries and develop rapidly.

Cryptocurrency regulation in this country

Cryptocurrency regulstion

EU countries have recognized cryptocurrencies as a means of payment, but they are regulated differently in each country. So in Estonia cryptocurrency is controlled more like goods, not electronic money.

If you are afraid of Estonian cryptocurrency regulation, there is no particular reason for this. There are very loyal laws that allow crypto organizations to develop rapidly.

Here you will be offered to obtain 2 types of permits. It depends on what activities your company makes a profit from. If you receive income from the exchange of crypto assets, you need a license for such a business. But, if you store assets or keys and get paid for them, you need a permit for wallets.


Your company must have a sustainable business plan for 2 years, and you must follow this. Otherwise, the government authorities may have questions. They also can provide reports on the company’s activities sparingly. If inspectors have questions about these reports, they can revoke the license.

How to create a crypto company?

If businessmen want to create a cryptocurrency organization, they must be prepared for the fact that they have to go through a long and somewhat difficult path:

  • Develop a business model and decide what services you will provide;
  • Create software;
  • Conduct testing;
  • Resolve legal issues.

Each stage is of great importance, but our company specializes in solving legal issues, so we want to discuss them in more detail.

Getting a work permit

You must register a company in the chosen jurisdiction to get a crypto currency exchange license. Next, you need to prepare documents, as well as open a bank account. The problem is that local banks do not tend to open accounts for crypto companies as they consider it risky, so you should pay attention to foreign banks that operate in this jurisdiction. After opening an account, you must fully deposit the authorized capital here.

You also must ensure you comply with all KYC and AML requirements. After that, you can apply for a permit. State authorities check all information within 2 months. If they have questions, they can return the documents for revision, and you will have a few days to resolve the problem.

What documents need to be prepared?

To obtain a work permit, you must collect a large document package. It can be challenging to understand all the intricacies, so it is better to leave this work in the hands of professional lawyers.

However, our specialists will ask you to provide complete information about you and the team members and how your company functions.

Taxation 

This country has pretty simple taxation rules. Financial transactions using such assets are not subject to VAT. It is mainly because crypto assets here are perceived from a legal point of view more like goods and not electronic money.

Crypto organizations are taxed in the same way as other legal entities:

  • Income tax – 20%;
  • Personal tax – 3%;
  • When withdrawing dividends – 25%.

Your company decides how to distribute dividends, so, likely, you won’t have to pay the final tax at all.

As you can see, taxation here is much simpler than in other jurisdictions, such as Lithuania or Poland. It is one of the main reasons why many organizations choose this particular country.

Benefits of cooperation with our company

CryptoLicense is a company that specializes in helping you obtain a crypto work permit. It has a large staff and a lot of experience in the industry. Among the main advantages of such cooperation are:

  • low cost of services;
  • assistance at all stages;
  • full consultation and help in choosing jurisdiction;
  • great experience and much more.

The specialists of our company are ready to cooperate with large corporations and small startups. They are well aware of the peculiarities of this jurisdiction’s work and will help obtain a work permit in the shortest possible time.

If you want to work legally in the EU, a good solution would be to get a crypto exchange license in this jurisdiction. There are straightforward and transparent rules for regulating this industry, low taxes, and low requirements for applicants. Here your organization will be able to develop, find new investors, and increase its audience legally.

FAQ

Any organization that is ready to work legally must pass the test and then can start working.

You must get a work permit if you want to exchange, buy or sell crypto assets.

You must pay a fee of 3,300 euros.

Yes, every organization is required to pay taxes. We wrote about this in more detail above.