CRYPTO NEWS AGREGATOR
Mon, Sep 6, 2021 5:15 PM by Viktoria O.

Watchdogs: Estonia Crypto Regulation and Estonia Crypto Tax

Estonia Crypto Regulation, Estonia Crypto Tax

Estonia is one of the countries where cryptocurrency activity is strictly regulated. Is crypto regulated in EU? What we are talking about next, read below!

Estonia Crypto Regulation Before and Now

How cryptocurrency regulation in Estonia work? Until the summer of 2020, Estonia was one of the first EU countries to liberalize cryptocurrencies, licensing more than 1,400 companies.

In Estonia, it was possible to freely obtain two types of licenses for crypto-currency activities:

  • for cryptocurrency exchange services for fiat money;
  • for services to provide electronic wallets of virtual currency (analogous to simple accounts and transactions possible with the funds stored on them).

According to the new rules, permits are issued after 3 months, at a price of 3300 euros. Previously, it took only 30 days to get the same license for 300 euros. Cryptocurrency organizations registered in Estonia will also have to register here or open a branch.

The New Is the Well-Forgotten Old

The new measures are implemented on the basis of new legal norms of the European Union, called the "Know your Client" rules. The laws require strict regulation of the activities of companies operating in the field of cryptocurrency. The purpose of the new laws is to stop money laundering in a relatively unregulated industry. Regulators and financial authorities of the EU countries often refer to these norms as the main problem of the development of the European cryptocurrency market.

The first legislative act regulating cryptocurrency activity was issued in 2014. At that time, the European Central Bank and the group for the development of financial measures to combat money laundering indicated that Bitcoin was recognized as a decentralized virtual currency.

Since then, laws have been issued adapted to the modern policy of regulating operations with virtual currency. In accordance with the new law, the following aspects of the use of cryptocurrencies have been improved:

  • Definition: Cryptocurrencies have a clear definition. It states that they are digital values that can be transferred, stored or traded by individuals and that can be accepted as a means of payment by companies.
  • Crypto wallets are defined as systems for storing digital tokens.
  • Estonian crypto licenses: the types of licenses that enterprises can use are also defined (for example, obtaining a license for exchanging cryptocurrency in Estonia).
  • Estonia crypto tax: "With regard to the taxation of virtual income, the purchase or sale price or the income received must be converted into euros at the virtual currency exchange rate (market price) in effect on the date of receipt of income or expenses."- Republic of Estonia Tax and customs board.

What do we think about the Estonia Crypto Regulation?

Estonia is a country where there is a complete and understandable regulation of cryptocurrency activities. Is Blockchain com regulated? Now the country continues to develop blockchain, allowing local and foreign investors to create various types of crypto enterprises in 2021. Estonia became the first EU country to provide businesses and individuals with activities related to the issue and trade of digital tokens. In order to find out more information, you can contact specialized specialists for advice on the Estonia crypto regulation and Estonia crypto tax.

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The content of this article is for informational purposes only and should not be construed as investment advice. We ask you to do your research.

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