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Estonia, the best crypto licensing jurisdiction
And if you believe in the free market, the high de-regularization and total decentralization of the crypto market is even better than your wildest Hayekian dreams.
As with any other kind of investment, getting into the crypto market isn't simple. It requires a ton of study, discipline, and resilience, as you're dealing with highly liquid and volatile assets.
But the crypto market has made many people wealthy and help them diversify their assets beyond the Big Brother´s reach.
If you genuinely believe that the freer the market, the freer the people, then you must be looking at the crypto business.
And the best way to start a legit and deep incursion in cryptocurrencies is with a crypto license.
In Mundo, we can offer the best crypto license on the planet: The Estonian crypto wallet and crypto exchange.
If you didn't pay too much attention to your geography classes in school, you're likely to miss Estonia on the map.
Estonia is a former member of the Soviet Union located on the shores of the Baltic Sea (Northeastern Europe).
This tiny country of just 1.3 million inhabitants is a free-market giant. It's the 10th freest economy in the world and the 5th in Europe.
Many former Soviet Union members, such as Georgia and Lithuania, have overhauled their economies after their dark Communist periods, but Estonia is, by far, the textbook example.
In less than 20 years, the country went from a wholly communist economy with a gigantic, inefficient bureaucracy, no property rights, and little foreign investment, to a technological hub, the entryway to the Eastern Europe market, and a global crypto destination.
Estonia has a progressive corporate tax system with a top 20 %. However, its system has one particularity, which makes it incredibly attractive. All undistributed profits are tax-free. That means that all revenues that are reinvested in your business are tax-exempt.
Moreover, foreign-sourced income is also tax-free, which is fantastic for e-businesses that receive the bulk of their income abroad. Furthermore, Estonia has a robust network of more than 50 double taxation treaties.
This small Baltic giant offers an ideal business environment that has allowed it to become one of the top digital, open government, and blockchain centers in the world.
Estonian is the national language, but its top educational system leads many people to speak different languages, which means that Russian and English coexist as business languages.
Estonia has a tradition of pro-business governments and policies, which helps the country to keep its fiscal and macroeconomic soundness, and it's one of the most solid democracies of all the EU. It is, indeed, a free country in the complete sense of the term: politically, socially, and economically.
But what we love the most about Estonia (and we're sure you'll do, too) is that the country is one of the pioneers in blockchain technology. It was one of the first few countries to approve the emission of cryptocurrency business licenses.
Estonia isn't the first crypto jurisdiction. Nevertheless, most of the other jurisdictions have many different licenses depending on the services you'll provide.
That's the case with Malta, which has four different crypto licenses depending on the services you intend to provide.
Estonia offers a simple licensing environment, with one license for crypto exchange and one license for e-wallets.
In fact, the license will allow you to buy and sell precious metals and rocks in certain countries.
And, as an EU member, Estonia's crypto license have passporting rights, which means you can freely establish your business in other EU countries without additional licensing requirements.
If you're serious about your crypto business, Estonia is your top destination.
Why Estonia? Six reasons to obtain an Estonia crypto license
A free economy
Estonia is the 10th freest economy on the planet, according to the Index of Economic Freedom. It enjoys unparalleled fiscal health, the financial sector has a reputable and efficient supervisory authority, and foreigners enjoy the same rights than the locals. The result? The economy has grown an average of 3.4 % in the last five years.
Fantastic tax system
Estonia has a top 20 % corporate tax rate, which is tied for the seventh-lowest in the EU. Since last year, a reduced 14 % rate applies if the company's taxable profit is less than or equal to the average of the three previous years.
However, the system has two major benefits: undistributed profits are tax-free, meaning that all profits that are reinvested in business are tax-exempt, and the tax system is territorial; thus, foreign-sourced income is totally tax-free.
Paramount political stability and transparency
Estonia is one of the most solid democracies in the EU. Governments have steadily applied pro-business policies and have been on the forefront of applying open government and e-government. This has made Estonia one of the most transparent countries on the planet, has kept low corruption levels, and has made the country a pioneer in public digital services.
Two licenses, many purposes
The crypto wallet and exchange licenses allow you to handle all primary crypto operations with just two licenses. That will save you a ton of headaches for having to apply to many different licenses for many different purposes. It is two licenses for all major operations, and you can get it in about a month.
Moreover, the licenses come with full EU passporting rights, which means you can also establish your crypto business in the rest of the EU without additional licenses, or having to establish a branch in the other country.
Top-notch IT infrastructure
The government has contributed significantly to the creation of IT infrastructure and services for the population, allowing them to vote online, register a business in 15 minutes, or pay taxes online in just 3 minutes.
There are very few places in Estonia without a wi-fi connection. Besides, the country funds special programs for students to develop their IT skills. All this means it's the ideal place from which to operate a blockchain business in a high-tech environment.
Ease to do business
Estonia is in the 18th position of the World Bank's Doing Business Report. Starting and operating a business in Estonia is simple as the country's public bodies are usually efficient and transparent, mainly thanks to the government's e-government policies.
Registering a business in Estonia is a simple three-step, three-day affair. Estonia's e-residency program also allows freelancers and startups around the world to register their company in Estonia while managing their business whenever they want. The program has led Estonia to be the country with the most per capita digital startups on the entire planet.
The Estonia crypto exchange and e-wallet license
Companies working with cryptocurrencies can apply for two types of licenses in Estonia:
1. Crypto exchange license: For providers of a service for exchanging a virtual currency against a Fiat currency. This license allows them to exchange Fiat to Crypto, Crypto to Fiat, and Crypto to Crypto.
2. Crypto wallet license: For providers of a virtual currency exchange service. This license allows you to provide a virtual currency wallet service for a company, the company generates security keys for its customers or stores their encrypted keys. These keys can be used for saving or transferring virtual currencies.
Operational licenses are issued by the Estonian Financial Intelligence Unit (FIU), which is an independent structural unit of the Police and Border Guard Board of Estonia.
In case a company needs to obtain both licenses, two separate applications must be submitted, and two separate licenses are issued.
The company is qualified as a financial institution, although it has no additional tax requirements at the moment. The accounting must be done in the same way as any other company registered in Estonia. There is no need for special reports to the regulator. However, the FIU reserves the right to make inquiries about the activities of licensed companies at any time.
Registering your crypto business in Estonia can be done remotely, and, generally, the licensing process can also be conducted remotely through a representative, but the FIU may request a personal meeting with you in their office in Tallinn, the capital of Estonia.
The process is generally swift and straightforward. To obtain a crypto license, it is necessary to register a company in Estonia or a branch of a foreign company in Estonia. We recommend using a local company and not a branch because registering the latter is more complex.
The process for obtaining a crypto license in Estonia
Registering a company in Estonia is a three-step, three-day process:
- Check the availability of the company name, submit the registration application, and pay the registration fee (€145 for the regular process, €190 for the expedite). If the share capital is over €25k, it must be deposited into a bank.
- Register for VAT at the tax and customs authority. This usually takes a couple of days.
- Register employees with the employment register. This can be done simultaneously with the VAT registry.
After registering your company, you can apply for the license(s) with the FIU, that will answer in a month. The response period can be extended two or four weeks if they request a physical meeting.
Upon application, we can also help you open a corporate bank account for your business in Estonia swiftly and remotely.
The following documents and information must be provided with the application (the list is not exhaustive, for a full list, please contact us ):
- Clean criminal and credit record of all directors, UBOs, and shareholders
- CV of all directors, UBOs, and shareholders
- A local office in Estonia, directed by a local manager
- Company webpage
- Business plan
- Financial forecasts for the first year
- Internal control norms of the company
- Procedure norms of the company
- AML policies
- Minimum social capital of €12000
What services can the company provide after licensing?
The crypto exchange license allows the licenseholder to provide crypto exchange services, including fiat-to-crypto, crypto-to-crypto, and crypto-to-fiat exchanges.
The crypto walletlicense offers a broader array of possible services:
- Crypto exchange
- Crypto payment system
- Alternative payment system provision
- Wholesale purchase of precious metals and stones, and articles related to them
Who are we, and what can we do for you?
In Mundo Offshore, along with NTL, we have more than two decades helping investors, family offices, and high net worth individuals around the world to diversify, protect, and optimize their assets.
Our core value is freedom because we want to help you live, invest, and work freely. We want to help you guard the legacy you've worked so hard to build for your loved ones and help you make the best investments in the best jurisdictions.
One market that has gained a ton of attention in the last few years from free-market lovers, like ourselves, is the cryptocurrency market. What started as a dream of a few has turned into a reliable, steady, and thriving business.
Estonia is widely considered the best crypto licensing jurisdiction. And we have a team of experts that can help you to quickly obtain your crypto license in Estonia, without headaches, and set up your crypto business.
Our services include:
For a competitive fee, we include:
- Company formation in Estonia
- The first year of domicile registry of your company
- A set of original corporative documents
- Due diligence forms for managers and shareholders of the company
- Creation of a bank account in Estonia
- Assistance to complete your license request
- Creation of an AML policy
- Recollection of all required documents for your request
- Submitting the application with the FIU and following the process until the approval
- Accounting services
Remember that, in principle, the whole process can be conducted remotely through our duly licensed representatives in Estonia. Nevertheless, the FIU may require your physical presence in Estonia for an interview.
Estonia is, by far, the best jurisdiction for your crypto business. What are you waiting for? Contact us right now and get a crypto license in Estonia!
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