Estonia

Estonia is a leading destination for Virtual Asset Service Providers (VASPs). Beyond its breathtaking landscapes and forward-thinking culture, Estonia offers a clear and transparent licensing process for VASPs. The Estonian Financial Intelligence Unit (FIU) acts as the regulatory body, overseeing registration and ensuring compliance with Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regulations. This clarity and efficiency make Estonia an attractive choice for VASPs seeking a smooth entry into the regulated digital asset space. Estonia boasts a streamlined regulatory environment and a business-friendly ecosystem, making it an ideal location to launch your VASP venture.

Key Advantages:

Digital Infrastructure: Estonia is a global leader in digital infrastructure, with a robust and secure e-government system. This translates to efficient business processes and minimizes administrative burdens for VASPs.
Tax Advantages: Estonia boasts a competitive tax regime for VASPs. Notably, there are no corporate taxes on reinvested profits, making it an attractive location for long-term growth. Additionally, cryptocurrency transactions are not subject to VAT.
Skilled Workforce: Estonia has a highly educated and tech-savvy population, with a strong concentration of talent in finance, technology, and blockchain development. This readily available workforce streamlines the recruitment process and ensures access to qualified personnel for your VASP operations.
Centralized Location: Estonia’s strategic location in the heart of Europe provides easy access to a vast potential customer base and facilitates international expansion opportunities.

Get in touch with us to learn more about becoming a VASP in Estonia

Jurisdiction: Estonia
Regulator: Estonian Financial Intelligence Unit (FIU)
License Name: VCSP license
Activities Allowed (fiat to Crypto exchange, crypto - crypto, custodian wallets): Exchange Services: VASPs with a VCSP license can operate cryptocurrency exchanges, allowing users to buy and sell digital assets with fiat currency (like Euros) or other cryptocurrencies. Wallet Services: The license permits VASPs to provide custodial wallet services for clients. This involves securely storing users' crypto assets on their behalf. Portfolio Management: Some VCSP licenses allow VASPs to offer portfolio management services for digital assets. This involves managing client investments in cryptocurrencies on their behalf
Structure requirements (#shareholders/director/officers,MLRO): 1 SH 1 DR 1 MLRO - must be 1 local at least
Basic requirements (business plan, website. demands from UBO, profitional background: Business plan, website. demands from UBO, profitional background and much more, Company shall have a corporate account opened at Estonian Bank or at a European Payment Institution with the right to provide services in Estonia Minimum share capital of Estonian VASP company shall be 12000 EUR Company needs to have a physical office in Estonia with the necessary equipment At least 1 board member has to be a resident, physically located in the country, and take part in the activities of the company All the major actors of the company (Shareholders, Directors, key employees) must be in good standing. To prove that, they are required to provide the regulator with certificates of no criminal record in the country of citizenship Company shall have and follow their AML/KYC policy, risk control, and monitoring rules The VASP company in Estonia shall be maintaining and storing client data that can be provided to the regulator if necessary Company is obliged to regularly collect KYC (customer due diligence) data of the clients Company’s directors and AML officer shall have profile education, skills, and experience in cryptocurrency activities of company employees
Local Physical Presence (Local Office and Local Staff): Local Director, Local AML Officer, Local Internal Auditor, Local External Auditor, local office
Tax Rate: Corporate income tax 0% on reinvested profits. 20% on withdrawn profits
Minimum Capital Requirement: 250,000 EUR
Time Frame for License Issuance (as of submission): 6-8 month
Regulatory leniency level (basic, intermediate, complex): Complex

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