If you are planning to set up an ERC20 wallet service provider business in Estonia, then you have to obtain the crypto exchange wallet. This license allows you the freedom to let your investors store their digital investment in a safe and secure wallet.
The digital wallets are subdivided into categories, one is the cold wallet, and the other one being the hot wallet. The cold wallet is offline means to store your electronic currency, while the hot wallet securely stores your digital investment-also second & receive cryptocurrencies. The license you obtain for the Estonian government cover the creation and maintaining of the private wallet keys, while your funds will remain safe and secure, and you’ll have the complete command, not the third-party site.
Who Issues The ERC20 Wallet License?
The license for starting a cryptocurrency service and providing wallet services are issued by FUI, Estonian Financial Intelligence. You can either apply for the license as together or separately. The entire process of obtaining the license in Estonia is completely online, you don’t have to travel from one government office to another in order to get your file through.
The entire procedure to establish your cryptocurrency wallet exchange company is completely online, and the application can be submitted online with no site visit. Typically, it takes less than 30 days to get approval.
What Do You Need To Obtain the ERC20 Wallet License?
Here, in this post, we’ve listed the basic requirements of obtaining an ERC20 wallet license: -
You end to provide the authority of Estonia that is responsible for issuing the licensing with the complete details of your business plan in the coming years, along with the scope of activities.
You’ll have to present a detailed report of operational, risk, and compliance software.
Detailed background CV and principles of your crypto wallet service business.
Provide specifications for the invested capital.
The website address needs to be provided at the time of applying for the cryptocurrency wallet service.
You are required to provide the Financial Intelligence Unit of Estonia with all the legal documents for each and every aspect of the company’s principles including notarized copies of the passport, police clearance certificate, updated utility bills, along with other personal details of the company.
As per the recent Money Laundering and Terrorist Financing Prevention Act and the Act of State Duty amendment, there are several changes made in terms of obtaining the crypto wallet license. First, the application review of the license is extended, the contributed share capital is increased, physical presence in Estonia is needed, and the cost of application review increased by 10 times.