Licensing process in any jurisdiction has distinct characteristics and compliance requirements that have to be 100% observed. Otherwise, the application may result in a refusal to issue a license. Preventing or minimizing this risk is always possible.
Provision of cryptocurrency services legally requires the service provider to obtain a license in most jurisdictions. Still, the nature of crypto assets makes the licensing procedure rather complicated and imposes different additional obligations on the applicants. Meeting such demands is necessary, especially in such reputable jurisdictions as Estonia. The state applies high standards to the market operators but opens vast opportunities for commercial growth worldwide to the holders of the Estonian cryptocurrency license. Prifinance experience confirms that. If you consider launching your crypto project in Estonia, there are some important considerations you need to take into account, as described below.
Crypto Licensing in Estonia
The primary condition for applying for and obtaining an Estonian crypto license is the incorporation of a resident legal entity. The procedure is straightforward and not bureaucratized. Non-resident investors may in addition undertake a position of board members but will have to find at least one Estonian resident to appoint as a local board member. Another must-have requirement to get an Estonian license is to have a separate company officer responsible for AML compliance. Still, it is possible to have only one shareholder in an Estonian company.
Just after the completion of company registration, a newly-formed entity has to pass 5 major steps to become a licensee in the crypto industry: (1) collect and submit complete and up-to-date details about the company’s structure, management, shareholders, and beneficiaries; (2) develop an individual financial model and business plan for the next 2 years of operation, (3) arrange and implement appropriate IT systems applied for client identification, tracking of transactions, and overall compliance with the travel rule; (4) guarantee ongoing internal and external audit of the company’s operation, and (5) develop and implement effective operational policies, including KYC/AML and data protection.
How Prifinance Specialists May Help You
If you wish to start and develop your cryptocurrency project in Estonia, Prifinance specialists are ready to facilitate the easiest realization of your business objectives, including:
- assessing correctly your business case and suggest the best business strategy to enter the market;
- choosing the most suitable legal entity type in your case and register a new company;
- collecting all required information and documents to start and handle registration;
- developing required policies in line with the applicable compliance requirements;
- developing and drafting a business plan and financial model in accordance with your business goals and regulatory requirements;
- drafting all expected statutory and registration docs;
- forming and lodging the application package needed;
- opening and closing all necessary bank accounts;
- handling negotiations with all local officials;
- ensuring your compliance with all regulatory requirements, including AML/KYC and data protection;
- supporting all commercial transactions carried out during the operation of your business.
Provide the details about the background of your business case and your prospective objectives to get more precise consultations and business solutions.
