Why Estonia for a Crypto License
Regulatory Clarity and EU Access
Estonia is considered one of the first countries to start implementing Web3 projects (In 2001, Estonia launched X-Road, its digital data exchange layer, and in 2008, it started experimenting with blockchain technology). To date, the country has implemented MiCA requirements to comply with EU regulatory policy.
Favorable Taxation and Innovation Ecosystem
Estonia is one of the European countries with the most attractive tax system. The main advantage is that profits are not taxed until they are distributed. This means that your crypto company can reinvest funds without any tax burden.
Reputation as a Crypto-Friendly Jurisdiction
As we mentioned earlier, Estonia has long been familiar with Web3 business, making it an attractive field for new businesses from around the world. Transparent rules, experienced providers, and open regulators make Estonia a great hub for starting your crypto business.
Types of Cryptocurrency Licenses in Estonia
Crypto-Asset Service Provider (CASP) License
After the MiCA Regulation came into force in the EU in 2025, companies wishing to provide crypto services must obtain the appropriate Crypto-Asset Service Provider (CASP) licenses. One of the advantages of the new regulation is that such licenses are issued by national authorities and are valid throughout the EU.
Crypto Exchange, Trading, Custodial Wallet and Storage Services
Another advantage of CASP licenses is that they include cryptocurrency exchange and trading platform services, cryptocurrency and wallet storage services, crypto-fiat and crypto-crypto transactions, execution of orders on behalf of clients, crypto asset transfer services, as well as providing advice on crypto assets and portfolio management, therefore, when obtaining an Estonian crypto license, you will need to specify the list of services that your business will provide.
What about Virtual-Asset Service Provider (VASP) License
Please note that as of 2025, preliminary Virtual-Asset Service Providers (VASPs) will no longer be issued in Estonia. Now only CASPs are permitted, and all VASP owners must contact the regulatory authorities and replace their crypto license in Estonia.
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Estonia Crypto License Requirements
Minimum Share Capital and Legal Form
In order to obtain a crypto license in Estonia, your business must meet certain requirements. Only private limited liability companies or public joint stock companies are allowed to participate in the crypto asset market. The minimum capital starts at €50,000 and can increase depending on the scope of services.
Licensing Procedure and Timeline
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Company Registration and Setup
So, it all starts with setting up a company. If you have E-residency, you can register a company in about a week, but without E-residency, you will have to wait up to a month.
Pre-Licensing Documentation and Staffing
The time required to prepare documents, hire staff, create all necessary plans, etc. always depends on you, but with the help of a professional team, it can take 3-5 weeks.
License Submission and Review Process
And finally, submitting an application for a crypto license in Estonia. Contact Finantsinspektsioon, provide all necessary documents and confirmations (additional documents may be required depending on the specifics of the business). Within 25 business days, your application will be reviewed and you will be notified if everything is okay. If your application is accepted, a compliance check will be carried out within 40 business days (the deadline may be extended by up to 20 business days, but you will be notified of this).
Operational Readiness and Maintenance
Keep in mind that when applying for an Estonian crypto license, you must have an office in Estonia, a local director, and an AML officer, as well as approved policies regarding IT systems.
Cost of Crypto License in Estonia
You must pay a fee of €3,000 for processing your application for authorization.
Service Packages Overview
The Estonian crypto license cost consists not only of the state fee but also of related expenses for document preparation, office expenses, employee salaries, etc. Icon.Partners is ready to help you on this journey.
Ongoing Compliance and Support Costs
In addition, some expenses may be ongoing, such as those related to maintaining the business, compliance, and capital.
State Fees
Crypto Regulation and Supervision in Estonia
Role of the Estonian Finantsinspektsioon
As we have already mentioned, Finantsinspektsioon currently issues CASP licenses, supervises the relevant business, conducts inspections, etc. Previously, during the VASP license era, these powers were held by the Estonian Financial Intelligence Unit (FIU), but that era is now over.
Audit, Supervision, and Reporting Obligations
So, you have done everything right and your business is listed in the Estonian cryptocurrency license register. Companies from the register are supervised by the Finantsinspektsioon. In addition, such businesses have certain obligations, including submitting annual financial reports, undergoing independent audits, and submitting internal control reports.
AML Officer and Local Board Requirements
As we mentioned, to meet the requirements, the company must appoint an AML officer who has experience in the financial sector. In addition, at least one member of the management board (director) who participates in management must be a permanent resident of Estonia.
Taxation of Cryptocurrency Companies in Estonia
Corporate Income Tax Structure
As a general rule, corporate income tax in Estonia is 22%. However, there is an important nuance: the tax is only applied at the time of dividend payments or other profit distributions. This means that you can leave funds in the company and reinvest them for business development, and therefore there is no obligation to pay tax.
VAT and Crypto Transactions
An Estonian company providing services in the EU must register as a VAT payer if its turnover exceeds €40,000 per year. With regard to crypto services, for example, obtaining a crypto exchange license Estonia allows you to provide exchange services, and the exchange of cryptocurrency for fiat or other cryptocurrency is not subject to VAT. However, providing access to an exchange platform is considered an electronic service, and VAT applies. Crypto wallet services are also subject to VAT. To avoid confusion about what and how to pay, please contact Icon.Partners.
Dividend and Capital Gains Tax
So, as we mentioned, undistributed profits of Estonian companies are not taxed, which allows them to be used further. The obligation to pay income tax arises when dividends are paid.
Access to the EEA Market
Thanks to the changes introduced by MiCA, the Estonian cryptocurrency license is issued at the national level but is valid throughout the EEA Market. Your CASP license opens up opportunities for business development at the European level.
Scalable Business Environment
Estonia is considered one of the best countries for developing a crypto business, offering digital infrastructure, easy company registration, a flexible tax system, support for innovation, and more.
Legal Certainty and Institutional Trust
Implemented European regulations and proper oversight make regulation transparent, which inspires confidence in Estonian businesses on the part of partners, investors, and banks. Don't waste time and let's change the crypto world with Icon.Partners!
Advantages of Holding an Estonian Crypto License
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5.0
"Their adept use of technology for communication and project management streamlined the entire process."
Thanks to Icon.Partners' efforts, the client was able to integrate with major platforms, such as Google, Facebook, and Stripe, and optimize their platform. The team was highly supportive and responsive from a workflow standpoint, and internal stakeholders were particularly impressed with the service provider's flexibility, professionalism, and technical prowess.
Oleksandr Platonov
CEO, VorfahrQR UG
Germany📍
Apr 10, 2024
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