Regulation of cryptocurrency handling, storage services and trading are varied among different jurisdictions.
Cryptocurrencies are a product of a relatively new technology and the laws of many countries have not kept up with the pace of technological development and for this reason some countries strictly prohibit them, some remain neutral and a few early adopters have created and implemented regulations.
Cryptocurrency in Estonia
The Estonian Republic is one of the countries trying to regulate usage and handling of cryptocurrencies. Estonia has implemented full digitalisation of public services powered by cryptography and opened them to international entrepreneurs via its e-Residency program.
Being a technologically advanced country, Estonia is a favourable jurisdiction for cryptocurrency and blockchain start-ups.
According to the Anti-Money Laundering Law of the Estonian Republic enacted in November 2017, a business wishing to deal with virtual currency exchange and storage for 3rd parties is required to register with the Financial Intelligence Unit of Estonia.
Virtual currency exchange means an exchange of any cryptocurrency or tokens into fiat money and vice versa as well as an exchange between different types of cryptocurrency.
Estonian Law recognises virtual currencies (cryptocurrencies) as an instrument containing value and which can be digitally transferred, stored, redeemed and mined. More information about the regulation of virtual currencies in Estonia can be found in the following article:
Cryptocurrency exchange authorisation in Estonia
HandelsHaus assists start-up companies interested in applying for cryptocurrency exchange licence in Estonia on each and every step:
It is important to note
that all companies dealing with cryptocurrencies in Estonia will require:
- a robust Anti-Money Laundering (AML) policy
- a dedicated Compliance Officer, responsible for development and implementation of the AML policies, procedures and practices within the company
- an effective compliance procedure with regards to International Financial Sanctions
- an Officer who will be responsible for following International Financial Sanctions, monitoring, reporting and implementation of an awareness program for the employees within the organisations
- maintenance of a local presence (open office) in the Estonian Republic
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