Updated: Nov 30, 2020
Do you want to open your cryptocurrency company in Estonia but feel overwhelmed by various doubts you have regarding opening a company in Estonia? Don´t worry, you have landed in the right place. We are going to simplify a lot of things for you, so go through the article carefully.
It's essential to understand why launching a cryptocurrency startup in Estonia is beneficial because of its flexible tax-regimes and startup-friendly policies. 0% Corporate income tax and pioneering spirit in welcoming different types of blockchain companies.
First of all, you and your employees are required to get an e-residency. If you are wondering what's the foundation of Estonian digital society, then you should know that the reason for Estonia's efficient digital society is X-road. There should be no doubt that to sell bitcoin via bank and transfer via debit/credit card and trade with a utility token, you will be required to obtain an Estonian cryptocurrency license. Check more info about how to open a crypto company in Estonia or why Estonia is a wonderful country to acquire a cryptocurrency exchange license from our partners site: Estonian cryptocurrency services.
The FIU or the Financial Intelligence Unit is responsible for allocating crypto-currency exchange licenses in Estonia. There are a lot of perks of having a government-backed license. Having a crypto-license supports smooth economic operations in corporate companies. You can even reinvest the profit earned in your own company without getting taxed for it; isn't that a great advantage of having a license! If you want to launch an ICO, then in Estonia, you will not be subjected to tax. So, Estonia is one of the most business-friendly countries with easy-going tax policies.
Mainly, there are two types of cryptocurrency, out of which you can choose to apply. For one-first is a cryptocurrency exchange service provider license. Then there is a cryptocurrency broker license.
Also, the Estonian crypto license can process debit and credit payments for over 179 countries. Obtaining the virtual currency service provider license allows you to provide the following services:
Virtual Wallet Service
It allows providing hot and cold virtual currency wallet service, generating or storing users' keys to keep, store, and transfer virtual currencies.
Exchanging Virtual Currency Against Fiat Currency
Fiat to Crypto, Crypto, to fiat transactions.
Exchanging Virtual Currency Against the Virtual Currency
With the help of a government-backed license, you can undergo crypto to crypto transactions. It's significant to note that it entirely depends on the token offering whether your ICO needs to acquire any license or not. The crypto wallet license allows you to offer Wallet services for a company. The crypto exchange license allows you to exchange Crypto to Crypto, Crypto to fiat, fiat to crypto transactions, and run utility tokens exchange or offer Exchange services.
So, we have reached the end of this article. We hope that as a budding entrepreneur or bitcoin enthusiast, you found the article useful and insightful. If you have any doubts or suggestions related to this article, then please feel free to write it down in the comment section. Stay Tuned