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New Regulation Applicable to Estonian Crypto-Companies

Yesterday, the Estonian government decided to amend the Money Laundering and Terrorist Financing Prevention Act (MLTFPA) and the State Fees Act. The amendments will impact on crypto-companies.

With a view to reducing the risk of the commission of money laundering, terrorist financing and other felonies related to cryptos, the requirements for the issuance of the license for operating as a virtual currency exchange service provider and wallet service service provider will be changed.

According to the proposal for the amendments to be made in the laws made by the Government, the Estonian FIU will carefully check the background and suitability of member of the applicant’ management board. Further, it will be required that the company has its registered address, seat of the management board and place of business in Estonia. In addition, the state fee for the issuance of the authorisation will be raised from 345 euros to 3,300 euros and the maximum length of the proceeding of the issuance of the authorisation will be extended from 30 workdays to three months.

Companies which already hold a license will have until 31st December to bring their operations into accordance with the requirements of the amended law and submit additional data to the Financial Intelligence Unit.

Unfortunately, as soon as new regulation applies, we will be forced to amend our fee-schedule. Up to that date, we guarantee we will keep our fees unvaried.

About the author, Estonian Crypto Licenses

He’s the founder and managing director of FinTech Legal Center, which provides pan-European legal, compliance, accounting, Hr and strategy advice to Fintech businesses. His customers say he can make extremely complicated details easy for business people to understand and digest. Further, according to them, he’s the calm in the storm.

2 Responses

  1. Hello,
    I am working for a new project in Switzerland, and we are going to create a HOLDING in Estonia.

    We are looking for a lawyer and an accountant with a lot of experience to help us set up the project.

    We currently have a Switzerland company that earns money every month,

    and we want to tokenise the project in cryptocurrency.

    I’m the responsable of creating this holding, witch will be represented by a digital security token, the name is “PETRA Holding” and our digital token will be “PETRA”

    We will already have inside the holding 10’500’000USD of REAL ESTATE Value for the start of our project.

    We want to create “PETRA Holding” with only one owner. We need an adress for this holding.

    In the beginning, we will create 10.5M PETRA TOKEN, each PETRA token will NOT be a part of the holding, but his value will be garanteed by the value of the holding. We will make a promise that the holding MUST buy back any time the PETRA Token at a certain price. We will also bring into this holding for 10.5M of contract value that represents share of Switzerland Real Estate compagny. The holding will win dividends.

    How do we garantie the value of PETRA ? Each weeks, we will establish a rapport with the “inner value” of the holding. We will create a page where the people are able to sell at anytime any PETRA token to the holding, and the holding will pay them back a certain price (1% lower than the inner value) by wire transfer after KYC verification. The holding will also sometime create more PETRA Token to get more funds, and sell them on some exchanges like Binance or HitBtc. With the cash collected, the Holding will buy more swiss real estate compagny to get more dividends. All dividends collected will stay into the Holding. The owner of the holding will not get the dividends of the holding, we just keep the profit inside the holding, to make the value of the PETRA TOKEN grow.

    We are working on the Whitepaper still. according to our information, if you think we have a good chance to get regulated, we can start to create the holding, and start the project step by step.

    “PETRA” token will be a security token, do you think we will fit the conditions to be fully regulated and approved? How to get this answer asap? How many time do we need to setup our project ? and with witch cost?

    If you could come with an answer, that would be nice, and I would like to know how many time do we need to setup the project?

    Thanks and best regards,

    1. Hello, Eric!
      Thank you very much for your comment.
      Given its nature and to provide you with the comments such a project deserves, I’ve forwarded it to our executives. They will be in touch with you via e-mail in no more than 24 hours.
      Best regards,

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About Estonian Crypto Licenses

Estonian Crypto Licenses is a trading name of TechIuris OÜ, a company based in Tallinn, Estonia and specialised in legal and compliance solutions for European FinTech companies. We are a fully licensed company, and EVEA and e-Residency marketplace members. Here on our blog, we share the latest news on topics such as NFTs, cryptocurrencies, blockchain and much more.

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