Cryptocurrency exchange license in Estonia

In order to start up a successful cryptocurrency exchange business in Estonia entrepreneur is required to obtain a crypto currency exchange license. Estonian cryptocurrency exchange license applies to transactions with funds that are recognized by the society and can be converted into a fiat currency. For example, Estonian license allows you to carry out operations with Bitcoin cryptocurrency. With cryptocurrency exchange license, you may receive funds from third parties as well as transfer them.

Member of the board, local resident

Requirements

To carry out operations with cryptocurrencies, incorporated Estonian company should have a minimal authorized capital that equals to 2,500 Euros. There are no strict authorized capital deposit requirements, however, to get the reputation of a reliable enterprise, it is highly recommended to deposit 2,500 euros on the company bank account, that our team of specialists is ready to open for the client.

An incorporated Estonian company structure should include:

    • At least 1 shareholder;
    • At least 3 members of the council;
    • At least 1 member of the board;
    • At least one contact person who is responsible for AML, International Financial Sanctions and for the communication with the state authorities;

Shareholders of the company have the right to simultaneously act as members of the board. A key requirement for the person responsible for AML is the continuous monitoring of clients’ activities with an objective to prevent money laundering and the financing of terrorism. In case of revealing suspicious activites it is necessary to notify the state authorities of Estonia.

Cryptocurrency exchange license obtaining procedure

Cryptocurrecny exchange license obtaining procedure in Estonia is regulated and approved by the local law. Our team of skilled professionals will guide you through a specific process and will explain all details, that are vital for the successful result. Our experts accompany clients at all stages – from the process of the incorporation of the company till the final procedure of obtaining the license.

First stage requires:

    • to prepare and notarize the power of attorney for one of our specialists;
    • translation of the power of attorney into Estonian with subsequent certification;
    • incorporation of an Estonian company;
    • opening of a corporate bank account;

All these processes are conducted and controlled by our skilled team members. In order to incorporate a company, we will help to collect the following package of documents:

    • scan-copy of passport;
    • marriage certificate – it is necessary to provide information about the presence of the spouse, as it is important in case of the sale of its share to third parties;
    • contact details of the founders – registration, real residence, e-mail address, telephone number;
    • company name;
    • address of the company’s website, contact details, skype;
    • spheres of activity of the company;
    • legal address;

After the company registration is completed, we prepare the documents for a license obtaining procedure.

Taxation of companies who deal with cryptocurrencies

Financial services of joint-stock companies are not subject to VAT. For companies, there is a zero income tax rate. Following taxes are compulsory:

    • 25% when dividends are withdrawn – the company itself decides how to distribute dividends;
    • 33% – the social tax on the personnel;
    • 20% – income tax;

Accounting services cost aprx. 100 euros / month and legal address necessary for incorporation and functioning of the company costs aprx. 300 euros / year. Compared with PI and electronic money licensed companies, the overhead costs of the cryptocurrency licensed company is cheaper.

Application for a license

Cryptocurrency exchange license is issued by Estonian regulator in case following information and documents are prepared and presented in the required manner:

    • contacts of the applicant company – phone, e-mail, website address;
    • information on the persons responsible for providing services;
    • information on shareholders / shareholders;
    • information about the legal representative of the company – name, date and place of birth, contact information;
    • Company inner rules for the implementation of procedures when working with cryptocurrencies and information about the person responsible for compliance with presented rules. The document should be developed in accordance with the requirements of the legislation of the Republic of Estonia;
    • instructions and provisions of internal control;
    • certificates confirming the non-conviction of shareholders / members of the board – should be issued at the place of residence;

Specialists of Diamont Law provide following comprehensive support:

    • full consulting support during registration of the company;
    • assistance in preparing and filing an application for a license;
    • interaction with the state authorities in the process of considering an application for a license;
    • registration of a legal address;
    • payment of state duties;
    • registration / transfer of powers of attorney;
    • accounting and legal assistance;

 

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OUR CERTIFICATIONS Diamont Law
OUR CERTIFICATIONS Diamont Law 2019
OUR CERTIFICATIONS Diamont Law 2019 Estonia

 

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OUR TEAM

 
DMITRII BONDARENKO

DMITRII BONDARENKO
DIRECTOR OF COMPANY

MAIIA RIAZANOVA

MAIIA RIAZANOVA
DIRECTOR OF THE COMPANY'S LEGAL DEPARTMENT

IGOR SMIRNOV

IGOR SMIRNOV
LAWYER, AML COMPLIANCE, FINANCIAL LAW

Arnold Woicehovski

Arnold Woicehovski
LAWYER