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Estonian Parliament passes significant legislation changes for virtual currency service providers

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Estonian Parliament passes significant legislation changes for virtual currency service providers

Yesterday, Estonian Parliament adopted a legislation which will greatly affect the business of thousands of companies providing virtual currency wallet service or exchanging virtual currency against a fiat currency. Should the license holders fail to meet the new requirements by 1 July 2020, the Financial Intelligence Unit will revoke the given license.

Starting from 1 July 2020 all companies holding a license of exchanging a virtual currency against a fiat currency or providing a virtual currency wallet service are required to have their registered office, location of the management board and the place of business in Estonia. The foreign company holding the license can meet the requirements also by registering a branch if the place of business and manager of the branch will be located in Estonia.

Another significant amendment is related to the share capital of the license holder which needs to be at least EUR 12,000 and has to be paid in by 1 July 2020. Furthermore, only monetary contributions are allowed.

The adopted amendments also increased the state fee payable for the license. Starting from 10 March 2020 the state fee will be EUR 3,300 instead of current EUR 345.  

Should you need further information regarding the amendments or compliance advice - Annika Soom at RASK is the person to turn to.