On March 10, 2020, amendments to the Estonian law on the Money Laundering and Terrorist Financing Prevention Act came into force.
The changes affected, in particular, the issue of licensing crypto companies in Estonia. Both Estonian companies that obtained licenses before the law came into force and companies intending to obtain a cryptocurrency license in Estonia were subject to the law.
- The concept of good business reputation is introduced, which should be possessed by every board member, procurator or beneficiary of a crypto company. Fortunately, Estonians have introduced the presumption of good business reputation. This means that your reputation is considered good in the absence of circumstances that indicate otherwise. Good business reputation will be assessed by the Financial Intelligence Unit, the state body responsible for licensing cryptocurrency activities in Estonia;
- The state fee for obtaining an Estonian crypto license (it is now called the Virtual currency service provider license) has increased 10 times and now is 3300 Euro;
- The company must confirm its physical presence in Estonia, f.e. rent an office and provide an office lease agreement;
- The company is obliged to confirm that the management is carried out on the territory of Estonia. The member of the board of the company must be a resident of Estonia and provide the relevant documentary evidence (lease agreement / utility bill);
- The company's current account must be opened with a financial institution (bank or payment system) in Estonia or any other EEA country;
- The paid up share capital must be at least 12,000 Euro. To confirm the payment of the authorized capital, an extract certified by the bank / payment system will be required. Such an extract is translated into Estonian and submitted to the Estonian commercial register as a confirmation of the payment of the share capital;
- The period for consideration of new applications for a license can be extended up to 120 days (instead 60 days, as it was before);
Analyzing the innovations, we state the tightening of the operating conditions for crypto companies in Estonia.
What the owners of Estonian companies with crypto licenses need to do
The law defines a transitional period for companies with an existing cryptocurrency license - until June 1, 2020.
This means that companies are obliged to bring themselves into compliance with the new requirements of the Estonian law on the prevention of money laundering and terrorist financing as soon as possible.
Why should you contact us right now
Taxters specializes in obtaining and maintaining a cryptocurrency license in Estonia and has thoroughly analyzed the innovations.
We will help you:
- Carry out the procedure for increasing the authorized capital in the Estonian register of companies;
- Arrange the lease of office space in Estonia, thereby resolving the issue of physical presence;
- Find a suitable candidate for the post of a member of the board of the company residing in Estonia;
- Open a current account with a European financial institution;
- Open an additional master account for cryptocurrency trading both in classic banks within the EEA and in payment systems outside of Europe.