Сryptocurrency exchange license
The importance of cryptocurrency exchange license.
Estonian Legal Framework provides legal opportunities for entrepreneurs to provide services related to the exchange of cryptocurrency, tokens and other crypto-currency assets and virtual values on fiat funds to its customers and partners both directly in the representation of its company and remotely throughout the world, using electronic channels of information, money, cryptocurrencies and other virtual values.
*Virtual Value is a digital value that can be traded, stored and transmitted and that individuals and legal entities accept as a means of payment, but which is not a monetary or legal tender of any state. It follows that cryptocurrency and its derivatives, including tokens, fall fully within the definition of virtual value.
Features of cryptocurrency exchange license in Estonia
- Regulator: Anti-Money Laundering Bureau (Financial Intelligence Unit)
- Legal Framework: Money Laundering and Terrorist Financing Prevention Act
Deadline for consideration of application: 30-60 calendar days
On the basis of a cryptocurrency exchange license it is possible:
- Make exchange of cryptocurrency for fiat funds;
- Exchange fiat funds for cryptocurrency;
- Make cryptocurrency exchange for cryptocurrency;
- Store cryptocurrency customers on specialized wallets;
- Make cryptocurrency transfers between clients’ wallets;
Obtaining a license to provide services of a cryptocurrency exchange.
Filing an application and obtaining a cryptocurrency exchange license of a provider of services for the exchange of virtual values and cryptocurrency for monetary funds is a procedure established by law, which requires care and strict compliance with certain procedural and substantive requirements arising from the relevant legal acts.
After obtaining the license, the Company will qualify as a financial institution (FI), while the company does not have additional reporting requirements for tax authorities.
As far as accounting is concerned, it will be the same as for a standard Estonian company, no separate declarations or notices need be filed with the regulatory body, However, FIU has the right to request information about the company’s current activities at any time.