Cryptocurrency licensing in Estonia and United Kingdom Part II

On previous part we discussed how with the arrival of cryptocurrencies there is a challenge for regulators around EU to regulate cryptocurrency wallets and change of monies to fiat. Read our last part to find out about the list of required documents for the companies.

 

Those who obtained a license before 10th March 2020

A transition period has been introduced for cryptocurrency license holders until July 1, 2020. If it does not meet the new requirements, the company will be deprived of its previously issued licenses.

  1. An increase in the authorized capital to a minimum amount of 12,000 euros;
  2. Transfer of the office and board of the company to the territory of Estonia;
  3. Introduction of a resident of Estonia to the board;
  4. Opening a bank account in the EU;
  5. Bringing all activities in line with the updated requirements of AML legislation.

 

Entities with cryptocurrency licenses in Estonia would be forbidden to establish or continue correspondent relationships with shell banks and such credit institutions or financial institutions that knowingly allow shell banks to use their accounts.  

With regard to cryptocurrency licensing in United Kingdom - as of 30th June 2020 is the last date for cryptocurrency businesses to submit their applications in order to complete the cryptocurrency registration at FCA for cryptocurrency businesses in the UK. New cryptocurrency businesses that began operating after 10th January 2020, must register with the FCA before they begin conducting cryptocurrency business activities.

On the other hand, cryptocurrency businesses that were operating before 10th of January, in case they submit their application for cryptocurrency registration at FCA, they will be granted with a priority review. For existing cryptocurrency businesses if the application is not submitted until June 30rd 2020, the FCA registration in such case may not be processed by 10th January 2021, and if the cryptocurrency businesses have not completed the FCA registration, on 10th January 2020, they will have to stop their operations.

On the next part we will clear why it is necessary to register the cryptocurrency at FCA.

To find out more detailed information regarding the Cryptocurrency licensing in Estonia and United Kingdom do not hesitate to contact lawyer in Baltics:

valters.gencs@gencs.eu , info@gencs.eu , +371 67240090.




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