Working as CEO of Astorts Group, my team and I have received many inquiries about a cost effective way to license a Cryptocurrecy Payment Provider or Cryptourrency Exchange Provider, so I decide to write this bootstrapper’s guide that can be useful for many of you.
If you are looking for the lowest possible entry point for authorised Cryptocurrency Payment Provider with easy and practical requirements, probably you should consider Estonia. I’d like -in this article- to focus on the options that Estonia may offer you.
Estonia Cryptocurrecy Payment Provider Licence:
Under Cryptocurrecy Payment Provider Licence you may offer the following Services:
- Virtual currency exchange service provider
- Virtual currency wallet service provider
- Currency exchange services provider
- Cryptocurrency payment provider
- Alternative means of payment service provider
- Buying-in or wholesale of precious metals, precious metal articles or precious stones
Requirements and Procedures:
According to Estonian Legislation Cryptocurrecy Payment Provider goes under the activity of “providing services of alternative means of payment“. To get the licence, certain information and documents together with an application must be presented to the register of economic activities.
It’s mandatory from 10th March 2020 to have an operational office and a local manager/director in Estonia and the Estonia company is expected to meet certain requirements, prescribed by the FIU such as:
- Directors of the company should have proper knowledge and expertise in the business that the company is planning to carry on.
- Directors of the company, Compliance Officers, Shareholders and UBOs have to show a Certificate of the register of convictions of them country of origin, which certifies the absence of a penalty for an offence against the authority of the state or a money laundering offence or another wilfully committed criminal offence (not older than 3 months and certified with an apostille) and must prove impeccable business reputation.
- Shareholders of the company must ensure proper capitalisation of the company. There is 12000 euro minimum paid- up capital to be fully paid.
- The application should be supported by certain information, including: the business plan, projected financial forecasts for the first year, Anti-Money Laundering and Customer Acceptance Policies.
- Existing bank account / PSP account in an EEA country which is providing cross-border services in Estonia or which provider has established a branch in Estonia.
Usually the full package to acquire your licence is in the range of $30.000 and includes:
- Formation of a Estonia Company;
- First year company registered address;
- One set of original corporate documents and rubber seal;
- Due Diligence file for Directors and Shareholders of the company
- Setting up a bank account for the Company in Estonia;
- Completing a License Application;
- Collecting supporting license application documents from the client;
- Submitting the application to the FIU and following it up until finalised;
- Bookkeeping and Accounting
Usually it’s very easy to set up a company in Estonia and all can be done on line. You many need an Authorised Contact Person if there is not any EEA Director as board member.
Estonia, officially the Republic of Estonia (Estonian: Eesti Vabariik) is a small country in the Baltic Region of Northern Europe. The capital city is Tallinn. Its population is 1,332,893
Estonia became a member of the North Atlantic Treaty Organization (NATO) on 29 March 2004. It joined the European Union on 1 May 2004. Estonia is east from the Baltic Sea and the northest of the Baltic States.
Estonia is a developed country with an advanced, high-income economy that as of 2011 is among the fastest growing in the EU. Its Human Development Index ranks very highly, and it performs favourably in measurements of economic freedom, civil liberties and press freedom (3rd in the world in 2012 and 2007).
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.