The complicated situation in the banking sector led to the active development of alternative financial services. First of all services in the field of cryptocurrency. Estonia holds leadership positions.
The development of the blockchain technology and cryptocurrency was either hampered by the lack of clear legislative recognition, or excessive costs of obtaining a license. However, now due to the legalization of cryptocurrency in Estonian legislation as a virtual value (virtuaalvääring), obtaining a license is not something special anymore and the market entry threshold for certain types of services is quite low.
Virtual value (virtual currency) – clectronic value, which may be transmitted in digital form, is stored or sold and accepted by an individual or legal entity as a means of payment, but is not a currency or a payment mean of any country.
Obtaining a license or permission to operate (tegevusluba) is necessary in the following cases:
- fiat currency exchange;
- exchange of virtual currency for fiat currency;
- virtual currency wallet service.
The peculiarity of the permit for activities in these areas is that it is not the applicant’s compliance with certain licensing conditions that is checked, but the level of professional competence and personal qualities of the companies’ management is checked, and the presence of internal regulations on countering money laundering and terrorist financing.
We have gained practical experience in obtaining permits to operate in the financial sector and can provide qualified legal support.