Estonia: Unleashing Competitive Advantages for Crypto Asset Service Providers
Estonia has emerged as a global frontrunner in facilitating crypto asset services, offering a highly conducive environment for virtual asset service providers (VASPs) to thrive. With its forward-thinking legislation, favorable tax regime, streamlined licensing process, and vibrant fintech ecosystem, Estonia has positioned itself as a go-to destination for crypto-related businesses seeking a competitive edge. This overview highlights the key factors that contribute to Estonia's appeal and underscores the country's unique advantages in the crypto asset industry. Read more from the article.
Overview of VASP requirements:
| License required |
Yes |
| Services and activities permitted |
Wallet service, transfer service, exchange service, emitting service |
| Regulatory authority |
Financial Intelligence Unit |
| Minimum capital requirements |
€100k to €250k depending on the services offered |
| Local board required |
Yes |
| Local office required |
Yes |
| Local compliance officer required |
Yes |
| Auditing requirement |
Yes |
| Internal control/internal auditor required |
Yes |
| Own funds requirement |
Yes |
| Corporate tax |
20%. Applies only if the profits of the company are distributed. |
| VAT |
20% or 0%. Financial services are tax-free. |
| Double tax treaty network |
Estonia has signed comprehensive Avoidance of Double Taxation Agreements (DTAs) with 64 countries; 62 are in effect. |
| Sharing the license with a subsidiary |
Possible. The subsidiary must also meet all the same requirements. |
Its important to note that some of these aspects will change with the adaption of MiCAR. MiCAR will enter into force by the end of 2024.
