Legislative definition of the cryptocurrency in Estonia
The discussions on the legal nature of the crypto currency do not cease.
What is a cryptocurrency - a means of payment or a financial investment tool?
The necessity and type of licensing for cryptocurrency activities in Estonia depends on the interpretation of the mechanism for using a cryptocurrency. Despite the fact that bitcoin appeared relatively long ago, banks are wary of ICO.
This is due to the position of the European Central Bank and the European Banking Supervision Service.
What licenses are needed to work with tokens, bitcoins, cryptocurrency exchange?
The financial regulator of the Republic of Estonia defined the token as a financial instrument when conducting an ICO, if it takes into account the dependence of the increase in the price of the issued token on the development of the company and its profit. If an ICO is recognized in Estonia or a secondary sale of tokens is carried out by investment activity, the incumbent must obtain an investment license in Estonia. If loans are issued during the ICO, a credit institution license is required.
The Supreme Court of Estonia has recognized bitcoin as an alternative means of payment in case if it is used to pay for goods and serveces and the existence of a certain value for it. In this case, for the implementation of exchange services, it is necessary to obtain a license for the provision of alternative payment means.
If you want to establish a business related to the exchange of cryptocurrency for cash, the team of SBSB international experts will gladly assist you in this (registration of a company in Estonia, obtaining a license for cryptо exchange activities in Estonia, etc.).
For over five years we have been advising our clients in the area of corporate law, international tax planning, finance, international licensing and comprehensive business support in more than 40 countries.
We will be happy to help you.
Tags: bitcoins, crypto currency, exchangers