A few weeks ago, Gidea Advisory attended a seminar organized by the Law firm Lextal which was dedicated to the transition to MiCA
The speakers highlighted the action plan for a crypto business seeking a license to start working as soon as possible.. The main points are:
Revise the business plan and analyze which services shall be provided
Corporate law actions – new capital requirements and personnel requirements
Technical preparation
Segregate assets
Preparation and review of other internal procedures and
Documentation
Review and draft public documentation
Establish dialogue with the regulator
Submit your license application – ASAP!
Get the license and make business.
It cannot be denied that an important question for many crypto companies is whether Estonia is still a good place to apply for a business license.
The best answer to this question is provided by the official statistics, according to which there are 52 crypto companies with valid crypto licence in Estonia as of today. And this after introducing one of the toughest requirements in Europe in 2020!
What advantages does Estonia offer over other jurisdictions for crypto companies?
Estonia has a clear advantage over other jurisdictions, as we have been one of the first countries to regulate crypto through a compliance procedure and the issuance of operating licenses. It is true that this initially led to a situation where thousands of licenses were issued in Estonia to crypto companies, many of which had no connection with Estonia and their activities were not transparent. When in 2020 Estonia again took the lead in restricting the proliferation of licenses and creating tougher but clearer conditions for crypto operators than before, many migrated primarily to Lithuania and other countries.
Now that the MiCA regulation has been adopted and applications for new licenses can be submitted from 01.12.2024, Estonia will continue to be the best place for companies that want to develop their business in an environment of clear legislation, adequate regulatory practice, and electronic administration.
The current license holders should keep in mind that the existing licenses will be void on 01.06.2026 at the latest, and now would be the right time to start preparing internal company documentation and procedural rules that are in line with MiCA requirements. In addition, it is necessary to focus your attention on building an adequate organizational structure and IT systems.
In other words, to achieve the readiness of your company to communicate with the regulator for the moment when the domestic procedure is in place, and the regulatory traffic light shows a green to start submitting the applications.
What kind of help can Gidea Advisory provide to companies seeking licensing in Estonia?
Based on our years of experience in cooperation with crypto companies operating in Estonia and other countries, we can say that the preparation of all necessary documents according to the business activities of a particular company takes several months. The regulator wants to see that the client applying for an activity license is a sustainable business with a compliant organizational structure and supporting normative documents.
We are distinguished by the fact that Gidea Advisory has very good experience with tailor-made solutions for crypto companies, where e-drafting documents and providing legal advice are primarily based on the personality of a specific client's business model. We do not provide the client with fancy template-style documents that are of little use in the licensing process.
If necessary, we can also help in finding suitable personnel, so that the company can acquire highly qualified specialists to start or continue a successful journey in Estonia. Our goal is to ensure that your company complies with MiCA regulation in Estonia entering into force in Estonia at the end of this year.