Cryptocurrencies

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.

Regulations

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:

https://hshaus.com/dealing-cryptocurrencies-estonia-regulations-authorisation/

Cryptocurrency exchange authorisation in Estonia

HandelsHaus assists start-up companies interested in applying for cryptocurrency exchange licence in Estonia on each and every step:

Consultation

Consultation regarding the necessary documents and procedures required to obtain authorisation from the Financial Intelligence Unit (FIU).

Revision

Revision of a client’s existing/proposed business operations and their licensing requirements.

Drafting

Drafting and preparation of the applicant’s internal regulations and policies (Anti-Money Laundering, International Sanctions, etc.).

Preparation

Assistance with preparation (certification, legalisation, etc.) of the required documents for a successful application.

Filing

Filing of applications and all necessary follow-ups with the regulator. We ensure swift and correct filing of all required documents as well as prompt response to any additional regulatory clarifications or requests.

Follow-up

We will follow-up with the Regulator and communicate the applicant any regulatory updates or inquiries in order to expedite the application and ensure smooth launch of the applicant’s business in Estonia.

Launching

Assistance with creation of forms, agreements, notices and other documents, which will become an integral part of your business.

Compliance

We help our clients’ businesses to stay compliant and update our clients on regulatory changes for internal policies, manuals, forms and processes.

A QUOTE IS AVAILABLE UPON REQUEST

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

Cryptocurrency Start-up

HandelsHaus is happy to assist businesses and entrepreneurs
interested in launching a start-up in cryptocurrency and block-chain technologies or moving their existing cryptocurrency business operations to Estonia.

In order to assess the feasibility of your application, to take the opportunity to obtain authorisation in Estonia or to find out more on cryptocurrency regulations in Estonia, please contact us to book an initial consultation.

Request a consultation

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