All about Estonia Cryptocurrency Exchange and Wallet Service Provider License
The Estonian Financial Supervisory Authority (EFSA) though an Application for a cryptocurrency exchange and wallet service provider license, must be submitted to the Register of Economic Activities.
- Brokers for exchanging a virtual currency against a fiat currency (it authorises exchanging fiat to crypto, crypto to fiat, crypto to crypto).
The licenses are issued by the Estonian Financial Intelligence Unit (FIU), being an independent unit of the Estonian Police and Border Guard Board. To obtain a Cryptocurrency Exchange and Wallet Service Provider Licence two applications must be submitted and therefore two licences will be issued.
Once the licence is issued the Firm qualifies as a Financial Institution but exempted from special reporting requirements to the local inland revenue. However, accounting records must be prepared.The FIU has the absolute discretion to revoke any authorization in cases where:
Licensing process for virtual currency services Following the incorporation of a local Estonian company, an application is submitted to the Financial Intelligence Unit (FIU); The process for the FIU's decision takes from 25 to 50 days from submission date.
It should be noted that in case of coins and tokens, the Estonian Financial Supervisory Authority (EFSA) may qualify them as securities as per local legislation; In this case the regulation will differ.