Formerly part of SOVIET Union Estonia, a small democracy in Northern Europe is one of the few countries where the Crypto regulation is open & innovative. In comparison to its member-states in the European Union, Estonia has always encouraged the young segment of the country to launch their startup related to Cryptocurrency. Moreover, being the world’s first digital society, Estonia over the past decade has developed into the most idyllic destination for Cryptocurrency & Blockchain investors from all parts of the world.
How is Cryptocurrency Recognized in Estonia?
As per the official record, the Cryptocurrency till isn’t listed as a legal tender in the country. However, it is clearly defined as “Value Represented in Digital Form.” The government of Estonia has imposed tax regulations on over the flow of Cryptocurrencies, but they are not subjected to VAT.
So, in a nutshell, we can conclude that buying/selling Cryptocurrency is not illegal unlike other countries across the globe such as India.
A 2017 Law on Cryptocurrency
Two years back, the government of Estonia passed a bill termed as “Anti Money Laundering And Terrorism Finance Act.” The aim of the bill was not to discourage people from investing in Cryptocurrency & the Blockchain technology, isn’t to curb the menace of terrorism in Europe. Further, thwart the terrorism activities to enter the boundaries of a peaceful nation Estonia.
So, whether you are planning to launch your Cryptocurrency exchange or a Blockchain empowered business idea, Estonia, unarguably as an easy pick with a sea of possibilities to turn your big dreams into a reality.
Are Cryptocurrency Exchanges Legal in Estonia?
Yes, the Cryptocurrency exchanges are entirely legal in Estonia. However, during the earlier days, there were no restrictions over starting a Crypto exchange in the country but post the 2017 AML/CFT all the exchanges in the country has to operate within a proper framework regulated by the government of Estonia. Furthermore, KYC regulations are imposed on the Crypto exchanges.
At present, if you want to operate a Crypto exchange from the land of Estonia, you are required to obtain two licenses. One is the “Virtual Currency Service License” and the other being the “Virtual Currency Exchange Service.” You can quickly get both the permits from the Financial Intelligence Unit of Estonia by applying online.
Since Estonia is a digital society; you won’t have a hard time clearing the legalities to start a Crypto business in the country.
What is The Future Ahead?
There is a lot of buzz in the air with regards to the crypto regulation in Estonia. Some are suggesting Estonia government will tighten the grip on Crypto activities in the country, while others say the government in the process of alluring the world to come and invest in Estonia by having an easy policy on Cryptocurrency.
There is also speculation that the Estonian government will launch the state-owned Cryptocurrency titled “Estcoin.”
I would love to hear from you, share your views & knowledge of the Estonia Crypto market in the comment section.