Cryptocurrency
Estonia Cryptocurrency License — Overview of the Top Cryptolicense
Anyone interested in entrepreneurship and cryptocurrencies already knows the one country that is always named when talking about crypto-businesses: Estonia.
The North-European country, whose population and size are comparable to the State of Maine, has successfully made the crypto world pin it on their map.
The Estonia cryptocurrency license was early. It was the first one to be white-labelled. It was the first one to get enough feedback to evolve, after 3 years of running the framework. Estonia hosts hundreds of cryptocurrency companies and is considered the benchmark.
Back in 2017, your company could get an e-wallet license or a cryptocurrency trading license in Estonia, or both. In 2020, the innovating Estonian regulators blended the two into a single blockchain license. Estonia wanted a stronger framework after money laundering scandals in a domestic bank. Following up on the FATF recommendation, the updated framework put an emphasis on AML-KYC.
Is the Estonian cryptocurrency license still interesting in 2022?
With the emergence of new licenses and the openness to crypto-related businesses in many countries at once, is the Estonian license still a good opportunity?
We are observing a division on the “market” of regulations. As new ventures pop up from all over the world, with very different business models, increasingly touching on the matters of DeFi and NFTs, the regulatory side is not one-sided anymore as well.
The Estonian framework was designed to monitor and legitimize the purchase and sale of cryptocurrencies, as well as thecustody. It is therefore best suited for centralized exchange, but can fit other kinds of services as well. The white-label nature of the framework brings a considerable benefit: as it is straightforward and replicable, the licensing fee and the operation-related costs are relatively low. Whatever your business model, Estonia most likely will show up as one of the best three options for registering your crypto company.
How does one get the cryptolicense in Estonia, without ever going to Estonia?
As long as you cooperate and agree to set a substance in Estonia, you will never be required to visit the country. Estonia, before even becoming renowned as a crypto-friendly place, has set most of its services online. For a business-owner, this means doing tax, editing the company and signing official documents from your computer, wherever in the world.
But you noted it: you have to set some substance in the country. This means, concretely speaking, that to get the cryptocurrency license for your Estonian company, you need to rent or own a physical space in the country. A local director should be appointed, which is the opportunity for the remote entrepreneur to have a brain and a pair of hands onsite. Finally, as per the FATF recommendations, any crypto company in Estonia has to appoint an AML officer, whose job is to ensure compliance of KYC processes and to report suspicious transactions.
This requirement for substance is a bit of additional work and comes with the cost of rent and employment. These added measures in 2020 have barred the road to the least wealthy crypto entrepreneurs, who are now looking into other places for establishment.
What is the process to get the Estonian cryptocurrency license?
The license is only granted to companies registered in Estonia, so this is square number one. With the IT infrastructure described above, it is possible to register a company in Estonia from anywhere in the world, given you can provide documents proving your identity.
Once the company is set, it’s about time to set the substance that we talked about in the previous part of this article: premises and local workers.
Substance is also about financial subsistence, and the Estonian law requires you to deposit EUR 12,000 in a bank account located in the European Union. The upside is that this money can be used for business once the license has been granted. It’s not locked in.
Afterwards, an application for license has to be completed and sent to the Estonian Financial Intelligence Unit. Having a clear and striking business plan is often helpful in getting your project green-lighted effectively. Be prepared to demonstrate your AML-KYC procedures and policies as well, it can make or break the success of the licensing process.
Saving time, energy and possibly money on the licensing process — a few tips
The best thing you can do is to acknowledge the requirements and to be prepared. You will be interrogated about the people involved so prepare notarized passports and a resume of all your team. You will need to set the substance in Estonia and to demonstrate your ability in applying the AML and KYC rules.
Experience shows that the whole process is much simpler and free of mistakes when conducted with the assistance of a licensed corporate service provider, such as LegalBison and it’s 100% success rate in setting cryptocurrency licensedcompanies in Estonia.
Ripple’s recent price action underscores significant bullish momentum as buyers continue to dominate the market.
Despite a potential brief consolidation phase, XRP is steadily approaching another coveted milestone of $2, with the prospect of achieving tapping that target by the year’s end growing.
XRP Analysis
By Shayan
The Weekly Chart
The weekly chart reveals Ripple’s remarkable trends, marked by a significant sell-off following the SEC lawsuit, during which the price plummeted to $0.28, a staggering 85% decline. This phase was followed by an extended period of low-volatility consolidation.
Eventually, buyers returned with vigor, driving the price through key resistance levels, including the pivotal $1.3 mark. Ripple’s subsequent impulsive surge highlights strong buying interest, pushing the cryptocurrency closer to a local peak of $1.9.
As the price approaches this critical level, bullish sentiment remains robust, but caution is warranted due to the overbought condition reflected in the RSI indicator. A brief consolidation or correction may precede upward momentum, with $1.3 as the primary support during any potential pullback.
The 4-Hour Chart
The 4-hour timeframe reflects Ripple’s breakout dynamics in greater detail. Upon encountering resistance at the $1.3 zone, the asset entered a consolidation phase, forming a sideways triangle pattern. This setup allowed the RSI to retreat from overbought levels and settle at equilibrium. Eventually, XRP surged, breaking out of the triangle’s upper boundary, signaling a bullish continuation.
Ripple managed to reclaim the $1.3 threshold and advance toward $2. While the bullish momentum is evident, a bearish divergence between the price and RSI hints at possible exhaustion. Furthermore, the presence of supply near the $1.9 resistance zone increases the likelihood of a consolidation phase in the near term. This temporary pause could allow the market to stabilize before XRP attempts to achieve new highs.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
Bitcoin’s inability to overcome the coveted $100,000 milestone on Friday and Saturday has resulted in a minor price decline to around $98,000 as of now.
Several altcoins, such as XRP and DOGE, have plummeted as well in the past day, but others, like TON, DOT, and XLM, have charted double-digit surges.
BTC Calms to $98K
BTC traded at around $90,000 at the start of the business week but quickly started to gain traction and exploded above the previous all-time high of $93,800 by the middle of it. This came amid the growing impressive net inflows toward the spot Bitcoin ETFs in the States.
The cryptocurrency’s rally continued in the following days and peaked on Friday. At the time, the asset came just inches away from touching $100,000 but was stopped at about $99,800 on most exchanges.
Thus, it failed to reach that line for the first time ever, even though the community was anticipating and predicting it. Since then, BTC has lost some traction and has retraced by around two grand to $98,000 now.
Still, it’s 7.2% up on the week, which places its market cap at $1.940 trillion on CG. Its dominance over the alts, though, has declined further to 55.5%, which brought speculations about a potential altcoin season.
XLM’s Show
Many larger-cap alts like ADA, XRP, and DOGE charted notable gains yesterday, but have retraced heavily today. ADA is down by 3% to under $1.05, XRP has slumped by over 6% to under $1.45, and DOGE has plummeted by 7.5% to $0.43.
In contrast, TON and DOT have soared by 11% and 17%, respectively, to $6.25 and $8.9. XLM, though, has stolen the show once again by skyrocketing by 29%. Stellar’s native token has added more than 480% in the past month and now trades above $0.56.
The total crypto market cap has shed about $50 billion since yesterday’s peak but still stands close to $3.5 trillion on CG.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
The US-based spot Bitcoin ETFs enjoyed a highly positive week, with every trading day ending with net inflows of millions and even billions of dollars.
In stark contrast, the Ethereum counterparties ended the same five-day trading period deep in red territory.
Over $3B Enter BTC ETFs Weekly
It has been nothing short of a spectacular run for BTC’s price as well as the inflows in the spot Bitcoin ETFs in the US after Donald Trump’s decisive victory in the 2024 presidential elections. The past trading week was no different, although it started somewhat sluggishly on Monday with a modest $254.8 million in inflows.
However, things picked up on Tuesday with $829.5 million, another $773.4 million on Wednesday, and $490.3 million on Friday. Oh, let’s not forget the whopping $1.005,1 billion on Thursday. This puts the total for the week at $3.353,1 billion, according to Farside.
Expectedly, BlackRock’s IBIT, the world’s largest Bitcoin ETF, was at the forefront of these substantial inflows most days. IBIT attracted over $500 million on three separate occasions – Wednesday, Thursday, and Friday. Thus, its total AUM has skyrocketed to well over $31 billion.
Fidelity’s FBTC also saw some impressive inflows of $256.1 million on Tuesday and just over $300 million on Thursday. Ark Invest’s ARKB had its best day on Tuesday, with $267.3 million in net inflows.
Within this highly positive week for the ETFs, BTC’s price shot up from around $90,000 on Monday to $99,825 (on Bitstamp) on Friday, thus coming less than $200 away from the six-figure territory.
ETH ETFs Suffer
The spot Ethereum ETFs also had quite impressive several trading days after the US elections, marking their best week yet in the period from November 11 to November 15. However, there were some warning signs at the end of the week, which only intensified in the following days.
In fact, the ETH ETFs ended almost every day in the past trading week in the red, with outflows of $39.1 million on Monday, $81.3 million on Tuesday, $30.3 million on Wednesday, and $9 million on Thursday. The funds managed to break this negative streak, which actually extended to six consecutive days in the red, including the previous Thursday and Friday, on November 22.
They attracted $91.3 million, with BlackRock’s ETHA leading the pack with $99.7 million, while Grayscale’s ETHE and ETH were in the red with $18.6 million and $0.6 million, respectively.
Overall, the ETH funds ended the week with net outflows of $68.4 million. Nevertheless, ETH’s price is up by just over 10% in the past week and sits above $3,400.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
Forex2 years agoForex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Forex2 years ago
How is the Australian dollar doing today?
- Forex2 years ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985
- Forex2 years ago
Unbiased review of Pocket Option broker
- Cryptocurrency2 years ago
What happened in the crypto market – current events today
- World2 years ago
Why are modern video games an art form?
- Commodities2 years ago
Copper continues to fall in price on expectations of lower demand in China
- Forex2 years ago
The dollar is down again against major world currencies
