Although the Cryptocurrency is no legal tender in Estonia, no government ban is imposed on the flow of the electronic currencies throughout the country.
The Crypto exchanges operating in the country are legalized by the Estonian government. If you want to set up a Cryptocurrency exchange in Estonia, then you are required to get a license. The procedure of obtaining a license is a no big-hassle in Estonia, as the policies of the world's first digitalized society have always backed investors from different parts of the world to consider Estonia has the headquarters for their business.
Cryptocurrency Regulation in Estonia
In comparison to any other European member nation, the Crypto regulation in the country is quite open & innovative. Yes, it is not recognized as a legal tender by the Estonian government, but as per the country’s financial law books, a cryptocurrency is a “Value Represented in the Digital Form.” In the country, the electronic currencies are subjected to taxes, but not VAT is imposed on it.
In the year 2017, the government passed a revolution bill that clearly defined the limitations of the movements of digital currencies in the country. This bill was named as the Anti-Money Laundering & Terrorism Finance Act, and it introduced stern rules and regulations on buying/selling Cryptocurrencies in the country.
Cryptocurrency Exchanges in the Country
Each and every government-licensed exchange by the government is authorized to operate in Estonia. The process of getting the license is a breezy-easy, as you don’t have to go from one place to another to meet the legal document requirements. This is because the entire process is done online; you can apply for the Crypto exchange in a matter of a few minutes.
Post the 2017 Anti-Money Laundering & Terrorism Finance Act, and the Estonia government chalked out the framework on how they want the crypto exchanges to work in the country. The crypto exchanges now have to obtain the KYC details of their customers before giving the green flag to the transaction; also these exchanges have to report the government now and then with the in-detailed data.
As per the present legislation, to set up a Crypto exchange in Estonia, one is required to obtain two separate licenses. These are obtained from the Financial Intelligence Unit of Estonia.
The Future of Crypto In Estonia
The government of Estonia is in the process of introducing a national digital currency by the name Estcoin. This would prove to be the big changer in the entire Crypto world. If this succeeds in Estonia, then this concept will reach the various parts of the world. However, owing to several criticisms from many of the member nations of European Union, the Estonia government has somewhat put their plan of launching its own digital currency on the back burner. But, it is still mulling over introducing the Estcoin currency within its e-residency program.
From the above, you probably come to know everything with regards to Crypto regulation in Estonia, for any query or doubt, share with us in the comment section.