Crypto license in Estonia
Crypto License: What You Need to Know Before Launching Your ICO in Estonia
Estonia is the most crypto-friendly country in the European Union according to Estonian e-Governance minister, Siim Kiis. In fact, the European Central Bank has noted that Estonia is one of the best countries to do cryptocurrency business in. With a population of 1.3 million and a thriving tech community, Estonia is the ideal geographic location for a crypto startup. These factors have made Estonia a popular place for ICO token sales. In fact, its government has gone so far as to propose a crypto-license for ICOs. The crypto-license is aimed at giving startups with an ICO valuation above $1 million some legal clarity. The proposal was made by the Estonian Financial Supervision Authority, who recommended that any ICOs that meet this valuation standard should be registered as a financial service provider. The license would also require the startup to have at least one third-party reviewer that would be able to verify the startup’s business plan and financial sustainability. The license would also include strict obligations regarding the source and use of funds raised.
Estonia Becomes the First Country to Propose a Crypto License
The Estonian government recently announced that it will be the first country in the world to propose a cryptocurrency license in Estonia. It’s no secret that most countries are still trying to figure out how to regulate cryptocurrencies. The government’s proposal is aimed at providing startups with formal oversight and clarity. The Estonian proposal will grant a license to any startup that has raised at least $1 million in its ICO. The startup must also have a detailed business plan and sufficient proof that it has the financial capacity to operate. The proposed license will require the startup to register as a “financial service provider” and submit a statement outlining the nature of its business and its plans for future operations. The service provider license will include several obligations such as registering with the Financial Supervisory Authority, opening a bank account, and submitting monthly financial reports.
Estonia as a Crypto-Friendly Jurisdiction
Estonia is one of the most crypto-friendly countries in the world. Its government has been proactive in adopting blockchain technology and promoting the use of cryptocurrencies. The Estonian parliament has even passed a law that makes it easy for companies to accept cryptocurrencies as payment. The new crypto license in Estonia will help nudge these companies into the category of financial service providers. The government hopes that this categorization will give it more oversight into these startups and bring them more in line with existing financial regulations.