The discussions regarding a new Estonian law on cryptocurrency and the revocation of crypto licenses also focus on the companies exiting from Estonian regulatory jurisdiction. If you consider incorporating a crypto business in Estonia, has to respect the recommendations and get a legal partner in Estonia. See the top three prime recommendations.
Engage with a legal partner in Estonia
Partnering in Estonia for a crypto license requires a consulting company. Estonian licenses in the crypto industry are for specific services and may not apply to every type of it. You see, the main problem with those is that they are going on very aggressive marketing to sell the “ready company” to anyone working in the cryptocurrency.
In Estonia, banks are very conservative, and not every one of them works with crypto business and non-Estonian residents. It’s a massive problem for those who don’t know that during the transition, an account suspension or blockage is no surprise when a buyer starts changing the shareholders and directors.
Beware of the consulting company you chose to analyze your business model to understand what you need, not only to sell you the company with great marketing tactics. And better choose an Estonian one since they for sure are acquainted with their legislation
Your business must start within six months after the issuance of the license
The Money Laundering and Terrorist Financing Prevention Act of Estonia indicates a particular legal requirement - a company has six months to start its business once the permit has become valid. Not starting your business within six months makes look suspicious to the FIU. This is easy to comply with, but quite often, it has been the reason for the revocation of licenses. A small detail to comply with, but believe me, it can impact your license
The little tip here is to indicate in the license appliance a delayed starting date. If your type of crypto industry takes more than six months to start, input the start date one year ahead from the time you apply for your license.
Comply with AML/KYC requirements to keep your license
The Estonian Financial Intelligence Unit has an Anti-Money Laundering compliance. For each AML/KYC requirement, you will need lots of different resources and legal expertise. Accordingly, any cryptocurrency exchanges registered in Estonia are required to have an AML officer who is the resident of the country and has specific experience in AML.
One consulting firm as the registered AML officer for 20 or more companies proves the lack of services’ quality. Try to find an available one that gains your trust and represents your interests exclusively in Estonia.
Take the AML/KYC compliance seriously - otherwise, you will become the 501 company to lose its license. Do proper research.
Currently, the Estonian Financial Intelligence Unit is under ongoing discussion to become a separate agency and with more power and resources. More expertise to supervise companies that comply with the relevant AML regulations that should combat the crypto crimes.