In 2019, it was named the best country for crypto business according to the rating Doing Crypto Index. At least that was until December 2019.
Estonia has always been famous for its business-friendly conditions, and cryptocurrencies are no exception. This Baltic state was one of the first to demonstrate confidence in blockchain technology and understand its promise and potential. Estonia was one of the first countries in the world to amend the law regulating money laundering. The changes legalized the conduct of the crypto business in the country.
Profit from the cryptocurrency business in Estonia is absolutely not taxed if we are not talking about the withdrawal of capital outside the country. The option of electronic residency made it possible to manage such a business even from a distance. This opportunity has attracted large cryptocurrency startups to Estonia, as E-Residency has opened up opportunities for foreigners to conduct business in this country on the same conditions as for local entrepreneurs.
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A simplified procedure allows you to create an online company in Estonia within 15 minutes. Estonia is on the list of states that provide entrepreneurs with optimal conditions in terms of economic freedom. It is not surprising that with such loyalty to businesses and digital money, crypto-investors are extremely optimistic about the “Estonian model”.
Any perfect reality eventually comes to an end. While it is not worth evaluating the changes in the Estonian legislation so categorically, however, the amendments introduced to it in December 2019 did not please anyone.
Firstly, the cost of a license required to open a cryptocurrency business in Estonia has increased from 345 to 3300 EUR. The application processing time has increased from 30 to 60 days, and for a successful result, compliance with rather stringent requirements is now necessary. Companies now need to register in Estonia, or at least open branches there with an office address and board of directors in the country.
These innovations significantly complicate the opening of cryptocurrency business and reduce the possibilities for blockchain projects. Authorities explain that changes in legislation regarding electronic residency and cryptocurrencies are designed to combat money laundering.
Can Estonia now be called «the lost cryptocurrency paradise»? While investments in blockchain startups and companies are kept at a stable level, one can only hope that the innovations will not slow down the development of cryptocurrency business in this country.