De minimis non curat lex

The law does not care about the little things

Contact us

677-55-44

Peterburi tee 47, Tallinn

Working time

Working days – 9:00 – 19:00
Saturday – 10:00 – 15:00
Sunday – closed

Book an
appointment

License for cryptocurrencies and virtual currencies turnover in Estonia

Amendments to the Estonian legal framework

At the end of the year 2017, the updated Money Laundering and Terrorist Financing Prevention Act came into force in Estonia, the basis of which was the Directive 2015/849 of the European Parliament and of the Council. In the new version of the Act, instead of the undefined term “alternative means of payment”, the concept of “virtual currency” was introduced, which brought clarity to the Act and allowed all interested persons to legally engage in the turnover (exchange, trade, investment) of virtual currencies (including cryptocurrency), when having the appropriate state license.

The concept of the virtual currency and cryptocurrency

  • According to the Act in force, virtual currency is a value represented in the digital form, that can be traded, stored and transferred, and which can be accepted as a means of payment by private persons and legal persons, but which is not a monetary or legal means of payment of any state.

    Also, the Act that came into force defines the concept of virtual currency wallet service, it is a service in the framework of which coded (encrypted) keys are created or stored for clients, and these keys can be used to store, manage and transfer virtual currencies.

    On the basis of the above definitions, it follows that the Act does not define the concept of cryptocurrency, but cryptocurrency, per se, fully falls within the definition of virtual value, which means that the rules for the organization of its circulation and storage are fully regulated by the Money Laundering and Terrorist Financing Prevention Act of the Republic of Estonia.

    Licensing of turnover and storage of cryptocurrency and virtual currencies

    Based on the Act that has entered into force, legal persons or private persons that provide clients with services for the exchange, turnover, transfer and storage of virtual currencies and cryptocurrencies, must obtain a corresponding state license, the regulator of which is the Police and Border Guard Board of Estonia. The Act provides the possibility of obtaining licenses of the following types:

    • Provider of a service of exchanging a virtual currency against a fiat currency
    • Provider of a virtual currency wallet service

    Persons who have received the above licenses are entitled to provide services for the exchange, turnover, transfer and storage of virtual currencies, including cryptocurrencies, to their customers from around the world, both directly in the representative office of their company, and remotely using digital channels of information, monetary assets and virtual currencies transfer.

    Obtaining a license for cryptocurrencies and virtual currencies in Estonia

    The process of obtaining a license for cryptocurrency and the turnover and storage of virtual currencies in Estonia involves, first of all, the development of internal procedural rules and internal control regulations establishing the fundamental principles of the AML/KYC procedure and analysis of the risk related to clients and business activities of the service provider, which must fully comply with the Act and Directive of the European Parliament and of the Council. This is followed by the application filing process, as well as the provision of developed internal documents and related information to the supervisory authority for approval. The period of consideration of the application is up to 30 calendar days.

    Kalashnikov Law Office lawyers have many years of experience in obtaining licenses of various complexity and focus for the clients of our law office. Our lawyers have developed their own exemplary standard of internal rules of procedure, as well as a model of AML/KYC procedure together with the accompanying documentation necessary to obtain a license for the provision of services for the exchange, turnover, transfer and storage of virtual currencies, on the basis of which the clients who contacted our office, have successfully obtained the required licenses and begun to conduct productive economic activities in this area.

    Our lawyers will provide you with comprehensive assistance and legal support on all matters related to obtaining a license for the provision of services for the exchange, turnover, transfer and storage of virtual currencies and cryptocurrencies.

    Contact the lawyers of Kalashnikov Law Office

    If you have any questions or you are interested in obtaining a license for the turnover of virtual values, including cryptocurrencies – please contact us by telephone +372 6775544< / b>, or use the following communication channels:

    E-mail: klienditugi@kalashnikov.ee
    Skype: kalashnikov.ee
    Mobile telephone / Viber / WhatsApp / Telegram: +372 82088888

    The lawyers of our office will be happy to answer your questions and provide quality support on the issue of obtaining a license for cryptocurrencies and virtual currencies, as well as offer quality support for the establishment of the company in Estonia.

  • Consultation
    QUICK REGISTRATION TO LAWYER Call back and assign you time

    Companies in Estonia