When you hear Estonia, what comes to your mind? Perhaps, a country in Northern Europe that borders the Baltic Sea and Gulf of Finland. Including more than 1,500 islands, its diverse terrain spans rocky beaches, old-growth forest and many lakes.
Well, Estonia has grown so well in digitalization such that News France 24 tagged her as the world’s first digital nation. But that is not all.
Lest I forget, in case you do not know. The Capital of Estonia is Tallinn. It is known for its preserved Old Town, museums and the 314m-high Tallinn TV Tower, which has an observation deck. All right, let’s see the dots that connect Estonia and cryptocurrency.
The Beginning of Cryptocurrency in Estonia
The emergence of cryptocurrency has changed everything when you consider the resistance against users with other payment processors like PayPal and more. That is not all.
With more than 30 Top Blockchain and Cryptocurrency friendly countries, Estonia is one of them that leads the park. But wait for a second.
Do you know that Estonia was one of the worst countries in EU for Bitcoin, blockchain tokens and assets? Here it is.
In 2016, the Estonian Supreme Court ruled in my Bitcoin case. The state and some media claimed that the court decided to treat Bitcoin like any other economic activity, but this is not true.
The court decided to apply extra regulation to Bitcoin trading that does not apply to other economic activities.
Including the requirement to meet customers in person (face to face), as well as the requirement to keep IDs of ALL customers and report those who trade more than 1,000 Euros more per month.
No other economic activity was subject to such strict requirements, the normal reporting limit was 15,000 Euros, not 1,000.
(Case Study was from BTc.ce which was forced to close due to threats issued by the Estonian police).
Cryptocurrency in Estonia as at 2019
Fast forward the whole drama to 2019 you will find out that Estonia is one of the buzzing crypto-tech countries, but it’s still without trying to control everything about crypto.
To confirm the latter, as of June 2019, companyregistration.tech reported that the Estonian parliament passed the first reading bill, which tightens the regulation of virtual currency licenses for service providers engaged in the purchase and sale of virtual currency and the provision of wallet service.
In addition, Cointelegraph confirmed that it was even harder to get a Crypto License Following Regulation.
The Estonian government’s Ministry of Finance introduced changes to the licensing process on May 3. The new regulations add a numbered formal obligation, extends the processing time from 30 to 90 day and establishes the requirement for a company or branch to be incorporated in Estonia.
So, what’s the way forward and how can a company get a crypto license in Estonia? Let’s see.
How To Get Cryptocurrency Exchange License In Estonia
The first fact we need to establish is that, as claimed by Eesti Consulting OÜ, it will be hard to obtain a cryptocurrency license now with the new regulations.
Current license holders will reportedly have time until the end of the year to fulfill the new requirements, otherwise, their license will be withdrawn by the regulator.
But here is the hack. There are 2 valid ways to get Cryptocurrency Exchange License In Estonia, and the way is for digital currencies to apply for 2 different activity licenses:
#1. Virtual wallet operating license:
#2. Cryptocurrency exchange operating license:
#1. Virtual Wallet Operating License
As explained by companyregistration.tech, Virtual Wallet Operating License allows providing virtual currency (hot and cold) wallet service in the framework of which the company generates keys for Clients or keeps Clients’ encrypted keys, which can be used for the purpose of keeping, storing and transferring virtual currencies.
#2. Cryptocurrency Exchange Operating License:
Cryptocurrency exchange operating license allows exchanging fiat to crypto, crypto to fiat, crypto to crypto.
The operating licenses are issued by the Estonian Financial Intelligence Unit (FIU), which is an independent structural unit of the Estonian Police and Border Guard Board.
More so, the company is qualified as a Financial Institution but has no special reporting requirements to tax authorities.
The accounting must be done like for any other company. You may find out more in the Financial Intelligence Unit’s advisory guidelines.
Talking about the Unit’s advisory guideline, one of the guidelines that stand out is “Cooperation and exchange of information”.
The Prevention Act (guideline) states that obliged entities cooperate with one another and with state supervisory and law enforcement authorities in preventing money laundering and terrorist financing, thereby communicating information available to them and replying to queries within a reasonable time, following the duties, obligations and restrictions arising from legislation.
See the Money Laundering and Terrorist Financing Prevention Act – Guideline.
Required Document to submit for Cryptocurrency Exchange License In Estonia
There are basically 2 documents, however, if the officials decide to ask more – up to 4, see what you want to present.
Certificate of the register of convictions (a.k.a. criminal record) for all related persons (shareholders, board members, ultimate beneficiary owners and responsible person). A criminal record has to be original, apostilled and submitted to Estonia to our office.
Passport copies of all the above-mentioned persons.
If asked for more…
CV-s of related persons
Description of planned activities.
Location Requirement For Crypto License Approval In Estonia
For this to be authorized, the registered office address and the board of directors now needs to be located in Estonia, and the state fee for the emission of the license has been increased from €345 ($386) to €3,330 ($3,729). The country’s minister of finance, Martin Helme, explained the reasons behind the change:
“We have learned our lesson from the banking sector the hard way, and we must now deal with new international risks, with cryptocurrencies among the most urgent of these.”
So, those are all the steps you need to get a cryptocurrency company registration in Estonia.
Reference: The registration data was from companyregistration.tech.
Making Money in Cryptocurrency from Estonia
Let’s briefly talk about how to make money in Altcoins if you are an Estonian citizen or you live there.
There are many ways to make money here. The simplest and popular routes include: #1. Buying and holding cryptos and #2. Trading.
For us, we will concentrate on these 2 routes. Let’s go on.
The Crypto Exchange to Buy Cryptocurrencies in Estonia
The best cryptocurrency exchange to Buy and Sell cryptocurrencies in Estonia is Coinbase.com.
Just as Coinbase is available in 100+ countries, in Estonia, you can transact coin purchase through the following payment methods:
1. Buy and Sell through Direct Deposit.
2. Buy and Sell through PayPa.
3. Buy and Sell through 3D Secure Credit Card
4. Buy and Sell through Debit Card
5. Buy and Sell through Credit Card.
How to Buy Cryptocurrencies on Coinbase.com from Estonia
The best way experts use Coinbase exchange is buying Bitcoin and thereby using it to buy or trade other altcoins of their choice. Here is what I mean.
If I wanted to buy a coin like Ripple, what experts do is buying Bitcoin from Coinbase first > then going on to buy the Ripple Coin. So, let’s see the exact steps to buying Bitcoin on Coinbase.
With Coinbase, you can Own Bitcoin in just a few minutes. Here is how.
#1. Create an account
Sign up at https://www.coinbase.com/signup to get started as it’s fast, secure, and designed to keep your personal info safe.
#2. Verify your identity
The essence of this is to prevent identity theft or fraud, you’ll need a photo ID to make sure it’s you. This takes a few minutes if you begin now.
#3. Buy Bitcoin
You can even get started with as little as $25, and you can pay with a debit card or bank account.
Why Estonians Use Coinbase to Buy Cryptocurrencies
#1. Strategic Blockchain Location:
Coinbase is based in San Francisco and trusted by 30+ million customers worldwide; including Estonia.
#2. Convenient Ways To Pay
All Estonians are allowed to use their debit card or connect your bank account, it’s up to you – what you want to use.
#3. Secured And Insured
I started using Coinbase 2016, so, it’s truly an Industry-leading security and insurance which means your crypto and personal info are safe.
#4. Little Portion
With Coinbase, all Estonians can Buy a little or buy a lot at Coinbase.com. As a matter of fact, you can buy a portion of Bitcoin –as little as $25.
The Best Altcoin Exchange to Trade Cryptocurrencies In Estonia
The best cryptocurrency exchange to Buy and Sell cryptocurrencies in Estonia in Binance.com.
Just as I have used Binance to Trade, with the Beginners section, every newbie to crypto in Estonia can Trade on Binance.com
Also, Estonia is one of the supported countries for sending SMS.
How To Trade Cryptocurrencies In Estonia
The How-to steps,
#1. Buy Bitcoin on Coinbase.com,
#2. Transfer it to Binance.com,
#3. Buy the crypto coin you want to trade with, (XRP, BNB, POS, LTC, BCH, and more),
#4. Start Trading on Binance.com
Step 1. Transfer the BITCOIN you bought at Coinbase.com to your Binance.com Bitcoin Wallet. How?
Copy the BTC wallet address of Binance and Paste on Coinbase Wallet Address Dashboard and send the Bitcoin quantity you want to your Binance.com wallet.
Step #2. Convert OR Use the Bitcoin transferred from Coinbase to Binance to buy any other CRYPTO-coin you want to trade with and start trading.
How to Withdraw Cryptos from BINANCE to COINBASE and to FIAT
Let’s say you want to withdraw your profits via trading OR accumulations to Fiat for usage. All you need to do is the reverse.
#1. Convert the Altcoins to Bitcoin on Binance,
#2. Send the Bitcoin to Coinbase – your wallet on Coinbase.
#3. Sell Bitcoin to Fiat on Coinbase. You’re done.
Top Crypto Automation Tools to use and Trade in Estonia
You MIGHT NOT NEED THIS part if you are a beginner, however, as times goes on, and you feel you want to automate your Crypto trading process, then you might want to use automation tools for that.
The 2 automation we recommend are CryptoHopper/tool and LiveTrader/tool.
There is a review of the 2, nonetheless, you can start crypto automation with either of them for free.
Estonian Cryptocurrency Forum to join
There are general cryptocurrency forums to join, however, there is a dedicated crypto forum for Estonians on a sub-reddit called Eesti
By a way of introduction,
The Estonian subreddit. Kõik, mis eesti keeles, eestlastele või eestlastest. Anyone here is also Feel free to post in English too.
All we wanted to achieve in this article was understanding how to get cryptocurrency exchange license in Estonia, Cryptocurrency Company in Estonia & everything about crypto in Estonia. And we want to believe you’ve gotten every ounce of it.
With the guide above I am certain you won’t just successfully get an Estonian License, you will go ahead to master and make money in Estonia via Crypto trading or accumulating it via Holding.
#Thanks for Coming On.