License for cryptocurrencies and virtual currencies turnover in Estonia

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: