Tag: LLC with EU VAT

05
Sep

How long does it take to obtain a cryptocurrency license in Estonia? The types of the licenses.

After registering the company with the Commercial Register and with the VAT authorities we can choose between two types of cryptocurrency licenses which can be obtained by cryptocurrency companies in Estonia.

The first type is the cryptocurrency exchange service provider license. It allows the companies to provide exchange services to those who want to trade cryptocurrencies against money or against other cryptocurrencies.

The second license – the cryptocurrency wallet service provider is suitable for companies which would like to offer e-wallets or virtual token wallets.

The entrepreneurs who would like to obtain such licenses need to wait for about 14-30 days after the application, for the response of the Financial Intelligence Unit in Estonia. Until the license is granted, the company is not allowed to start the activity. After receiving the license the company is obliged to start the activity within 6 months.

Some activities related to cryptocurrencies, for example popular digital token mining may be conducted without the license as long as the company does not trade them.

If you would like to start business in Estonia, please contact our specialized team. You will receive all the answers to your bothering questions and we will clarify all ambiguities regarding this topic.

23
Aug

VAT changes are coming again.

On January 1, 2020, subsequent amendments to VAT will enter into force. This time they are caused by changes in European law. They concern the so-called intra-Community transactions.

The taxation system for these transactions, which has been in force since 1993, is temporary and is difficult to use for businesses at all times, prone to scams and fraud.

For now, the EU is proposing four ad hoc solutions:

– harmonization of provisions on the storage of goods (consignment warehouses),

– simplification of chain transactions, the intermediary arranging the transport will be able to decide which of the transactions is intra-Community,

– changes in the meaning of summary information provided to tax authorities, – simplification in the required documentation of intra-Community transactions.

– simplification in the required documentation of intra-Community transactions.

11
Aug

The ways to invest in Bitcoins.

Bitcoin exchange (BTC) – the investor can set up an anonymous cryptocurrency account to buy and hold cryptocurrency through the BTC exchange. However, this carries two types of threat.   First, when we make transactions on the cryptocurrency exchange, our funds are not on our account, but on the exchange account. Unfortunately, the short history of cryptocurrencies already knows spectacular examples of crypto exchanges that have been closed overnight, disappearing along with investor funds. There are also examples of cryptocurrency exchanges that have been robbed by hackers.   Secondly, if we lose our login and password to the account or someone steals them from us, we will lose our cryptocurrencies irrevocably, without the possibility of applying for help. There is no place where we could ask to recover lost data or stolen bitcoins.

A different method of making profits from cryptocurrencies is data encryption. To start making money on cryptocurrencies, you can also buy specialized information encryption equipment and receive remuneration in the form of bitcoins for your contribution to the IT system. However, this requires specialized knowledge in the field of programming and selection of advanced computer equipment, which is not the cheapest.