Is Crypto Legal In Estonia?

Cryptocurrency is legal in Estonia under a comprehensive regulatory framework governed by the Crypto Asset Market Act and the EU's Markets in Crypto-Assets Regulation. Crypto-assets are treated as property rather than legal tender, with all crypto-asset service providers required to obtain authorization from the Estonian Financial Supervision Authority (1). Estonia's journey began in 2017 with anti-money laundering legislation amendments that defined cryptocurrencies and established licensing requirements, though the regulatory landscape underwent significant transformation with MiCA implementation on December 30, 2024 (2).

The Estonian Financial Supervision Authority now serves as the primary regulator for crypto-asset service providers, replacing the Financial Intelligence Unit which previously issued licenses. All CASPs must secure FSA licensing, with previous FIU-issued licenses remaining valid only until July 1, 2026, after which entities must obtain MiCA-compliant authorization (2). Estonia dramatically reduced its licensed crypto firms from over 2,000 to just 45 by September 2024 through stricter oversight measures including mandatory audits, minimum capital requirements of €100,000 for most services, and physical office establishment requirements within Estonia (1).

"Under this new regime, all crypto-asset service providers must secure a license from the Estonian Financial Supervision Authority. The previous licenses issued by the FIU will remain valid only until July 1, 2026."

Estonia's regulatory system imposes substantial penalties for non-compliance, with legal entities facing fines up to €15 million or 15% of annual turnover for severe violations involving market abuse prevention. Natural persons can be fined up to €5 million or three times their profit for similar breaches (2). Crypto-asset service providers must implement comprehensive governance arrangements, maintain digital operational resilience under DORA regulation, fulfill quarterly reporting obligations, and comply with stringent AML/CFT requirements including customer due diligence and Travel Rule adherence for all crypto-asset transfers (2).

Source:
https://www.fi.ee/en/investeerimine/investeerimisvaldkonna-tegevuslubade-taotlemine/kruptovaraturu-tegevusluba
https://charltonsquantum.com/wp-content/uploads/docs/estonia-crypto-guide.pdf

Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.