It can be challenging to choose the correct EU country for your crypto business according to the project’s nature and scope. Although EU laws provide a common regulatory framework across EU member countries, there are many significant differences between jurisdictions, especially when it is about innovative products and services like cryptocurrencies.
A jurisdiction analysis will help you avoid any unpleasant surprises if you are looking to do business with cryptocurrency within the EU.
There are certain countries that are more advantageous than others when it comes to cryptocurrency license in Europe. Some are well-known, while others are less so.
Let’s take a look at the most noteworthy countries in Europe where you can start your cryptocurrency business.
The AMLD5 standard was implemented, and significant changes were made to the licensing policy. Crypto assets are one of the new types of financial assets defined by the Kreditwesengesetz.
Any government or public institution cannot issue crypto assets in order to be recognized as such.
However, they can be exchanged, sold, or purchased electronically.
Businesses that offer crypto custody were also considered a new service in financial services (basically, it is now that the German law recognizes crypto brokers as financial professionals). They need to be issued a BaFin crypto license under the terms and conditions of the theKreditwesengesetz.
However, regulations are still being reviewed and may be subject to changes. It is possible for the scenario to change at any moment.
Estonia is one of the crypto legal EU countries where you can flourish your business. The digital platforms offered by the government can do many of the necessary operations for obtaining an Estonian cryptocurrency license. As one of the most populous EU countries, Estonia is also one of the most digitally friendly.
The FIU, which is responsible for the entire process, has connections to the Estonian Police as well as the Border Guard Board. Estonian authorities are reducing the risk that they can be used to facilitate customer due diligence and to prevent money laundering.
Currently, Estonia is the best place in the EU to conduct cryptocurrency business.
There isn’t as much crypto-friendliness in Malta as it seems. You must apply for a crypto license for a specific class, depending on your needs.
In short, there are four types:
- You can send and receive orders.
- You can work on virtual financial services but not operations
- You can work on all other operations but not exchange.
- This includes operations for virtual financial assets, custody, and funding.
You will also need to provide proof of good faith and an address. In order to incorporate a private limited liability company, rent an office, and hire at most three employees, you will also need to have proof that you are physically present.
Considering how crypto-friendly they claim to be, this is bad news.
The Lithuanian regulators are trying to catch up with Estonian counterparts when it comes to new financial instruments.
Any EU or non-EU company can now apply for an FIU crypto license.
Your co-members of the management board need to demonstrate their impeccable reputation to you.
There are two types:
- Exchange license, for example, would allow you to exchange crypto owned by clients for a fee.
- License for depository wallet, for instance, if you are part of a crypto custody company.
Many banks are becoming crypto-friendly. It won’t take long to open an account. Once you have all the necessary permissions, you will be able to convert fiat currency into crypto.
According to the Swiss Tax Authority, cryptocurrencies are assets that are legal to purchase, sell, or trade for various activities. They can legally be bought, sold or traded for many purposes.
Although Switzerland is not part of the EU, the country offers a variety of benefits that can make it a favored jurisdiction.
There are many types of cryptocurrency licenses available depending on the type of business you are looking to start, but all are open to everyone. FINMA’s Clear guidelines are available before proceeding.
Although it is challenging to launch an ICO due to the evolving regulations, it is not impossible.
However, timing is an issue: obtaining a cryptocurrency license can take time. However, a license can last up to one year because KYC and AML checks are made before it is issued.
Is another country of interest to you?
If you are looking to open a cryptocurrency business elsewhere in Europe and wondering how to get a cryptocurrency license in EU. Feel free to contact us. We will assist you in finding the best EU country to do crypto business. Your needs will be taken into consideration.