Crypto-Companies and Crypto-Licenses
Some aspects to bear in mind for Crypto-companies
Crypto-Companies are subject to a completely different legislation. If your company handles, holds, accepts payments or pays in crypto, you need to know a series of requisites and regulations.
First, what’s a Crypto-Company? Any company that offer services for exchanging, handling, receiving, sending or holding crypto currencies or virtual assets that have economic value to third parties. If your company wants to launch a crypto-exchange, is preparing an ICO for a token, exchanges fiat and crypto currencies for its customers, or pay its employees with Ethereum, you are a Crypto-Company.
If your company only exchanges fiat for crypto internally as an investment, without offering it as a service to third parties, using well-known exchanges such as Kraken, then the licenses are not required.
First, to comply with the legislation, and make sure your accountancy adheres to the most strict legality, you need to obtain some licenses for your company. It’s essential that these licenses are granted before the activity of the company starts to avoid legal problems with the authorities.
These licenses can be considered expensive. Due to the new legislation in effect starting January 2019, not only their prices has been set to thousands of euros, but the requisites to obtain these licenses are more strict. The process may take now up to three months, and require a certain documentation such as criminal records (obtained less than 3 months ago). Additionally, one of you may be required to visit Estonia to have an interview with a FIU representative from the Estonian police.
Your Company In Estonia is here to help
The good news is: we have experience obtaining these licenses and can advise you during the whole licensing process.
Additionally, most traditional banks, and many fintech solutions such as Holvi, Transferwise or Revolut Business don’t work with Crypto-Companies like yours. You will need more friendly solutions. We can help you find the right banking solution for your business.
Finally, the accountancy of these companies is a lot more complex. Due to the volatility of these crypto-currencies, the turnover value of your company will greatly vary from one day to the next. That requires a daily control of these oscillations and is the reason why the accountancy is more expensive than a regular company. Have a look at our prices here.
The e-Residency program of Estonia
Estonia offers a digital identity issued by the government, that allows online entrepreneurs start a European company and manage it on the go.
Crypto-Company Registration in Estonia
This package is intended for Crypto-companies that need accountancy services. If you still don’t have your company registered, you can do so using our online wizard in just 4 steps. As part of our company registration pack, we offer virtual office, legal address in Estonia, contact person from Estonia, employment and board membership registration, VAT number application, and VIES registration. The price of the company registration pack is subject to the subscription to a monthly accountancy plan.
Applying for Crypto-Company licenses
A crypto-company needs to obtain specific licenses before starting its activity. Depending on the activity of the company (Crypto-trading and/or Crypto-wallet), it may be required to get one or two licenses.
Notarized company documentation with apostille
Crypto-companies often find difficulties to open a bank account. In Your Company in Estonia, we work with bank service providers that will open a bank account for your Crypto-company. However, you need some extra documentation translated by a sworn translator, and with an apostille. Our package “Notarized company documentation with apostille” includes that service, and it’s charged separately. Have a look at the prices here.