Cryptocurrency Exchange licensing and company formation

[ElPatron]

Hello guys,

Does anyone of you know a good reputable legit Law firm that can assist us in opening a company in Estonia and obtaining a crypto license (wallet and exchange service). I know that This license cannot be passported to other EU countries. However according to our understanding, in most EU jurisdictions there is no comparable licensing requirement thus there should be no limitations in most countries to operate the business in a similar way.

Also do you know what are the setup and monthly costs about?

Thanks,

 

[CyprusLaw]

Hello guys,

Does anyone of you know a good reputable legit Law firm that can assist us in opening a company in Estonia and obtaining a crypto license (wallet and exchange service). I know that This license cannot be passported to other EU countries. However according to our understanding, in most EU jurisdictions there is no comparable licensing requirement thus there should be no limitations in most countries to operate the business in a similar way.

Also do you know what are the setup and monthly costs about?

Thanks,

I cannot assist/advice on the Estonia part - however - just a minor point about providing services into other EU countries - pursuant to the implementation of AMLD5 most EU countries have introduced an Crypto Asset Service Provider Register, where you would need to be registered in order to provide services in a said country, regardless of whether you have been licensed and/or have registered in another EU member state. At least this is how it has been implemented in Cyprus, and I believe that most, if not all, EU countries have implemented it this way.

 

[ElPatron]

I cannot assist/advice on the Estonia part - however - just a minor point about providing services into other EU countries - pursuant to the implementation of AMLD5 most EU countries have introduced an Crypto Asset Service Provider Register, where you would need to be registered in order to provide services in a said country, regardless of whether you have been licensed and/or have registered in another EU member state. At least this is how it has been implemented in Cyprus, and I believe that most, if not all, EU countries have implemented it this way.

@CyprusLaw thanks a lot for the info. This license cannot be passported to other EU countries but from my understanding in most EU jurisdictions there is no comparable licensing requirement thus there should be no limitations in most countries to operate the business in a similar way is that correct? What of peomotion is in English language, and what about non- EU countries?

 

[CyprusLaw]

Correct - for example Cyprus does not have a licensing requirement similar to Estonia. The requirement is to register as a Crypto Asset Service Provider for AML purposes, so the requirements are quite simple and straightforward. The same in other EU Member States as well, so you would have to register the provider for AML purposes. I am not sure for non-EU countries.

Generally as far as I know the only countries that have a full regulatory framework with licensing requirements etc are Estonia, Malta and Gibraltar (could be missing some).

 

[CaptK]

AMDL5 is basically the standard benchmark for all Crypto exchanges in the EU. Even the UK use it eventhough they are out of the EU.

An Estonia set up can be used by anyone and if you choose to accept customer from out of the EU you just have to do a deeper DD. If you provide a fiat wallet then they may not be able to use it depending on your banking partner and their terms and conditions.

Set up is about 25K (takes about 3 months), ready made from about 50K and you can buy a a licenced exchange with platform, and apps (playstore/appstore) for about 150K

 

[Don]

Need to activate my membership here again to promote my company, but we are dealing with crypto licenses in Estonia and we also promote cross-border structures with parent in Georgia for example.
Note that in Estonia, there are some regulatory changes ahead which will possibly drive up the costs a bit.