Crypto Businesses That Do Not Need a License in Estonia
We have been working in the compliance area for quite some time now. Ever since virtual assets became a part of the Estonian financial sector and the Estonian Financial Intelligence Unit first started providing licenses to virtual asset service providers, we have had a steady focus on providing expert legal help to businesses that need it to continue their operations.
While the legal landscape for crypto businesses in Estonia has gotten much more complicated as the Estonian government has seen the need to increase transparency and lower money laundering and terrorist financing risks, there are still some crypto businesses that do not need a license in Estonia.
This provides the perfect opportunity for entrepreneurs that are looking to set up a base for their blockchain business in Estonia, which can be considered one of the best locations to do so in the world.
To give you a simplified understanding of when a license from the Estonian government is needed or not, we have put together a table:
Crypto businesses that do not require a license in Estonia | Crypto businesses that do require a license in Estonia |
Provision of virtual asset services:
| |
Utility token initial coin offering (ICO)
| Issuing virtual currency thorough ICO
|
Cryptocurrency mining | Security token offering (STO) / Equity token offering (ETO) |
Trading or investing in crypto for own use (not providing services to third parties) |
As you can see from the table above, there are many areas and activities in which no license from the Estonian government is required. While a license is not necessary, it is important to understand that there are still legal pitfalls that business owners must avoid in order to remain operational.
RCA – Your Legal Expert in Blockchain and Cryptocurrencies
Not only do we have in-house expert knowledge of the Estonian legal landscape that affects businesses that deal with cryptocurrencies, but we also understand the essence of blockchain businesses. In case you would like to get expert legal advice and wish to set up your new crypto business in Estonia, please reach out to us and we’ll be more than happy to get you started!
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