What kind of companies do NOT need crypto licenses to operate in Estonia?
In these cases:
Businesses that pay for goods or services using cryptocurrencies or receive customer payments in cryptocurrencies.
Those that pay salaries to their employees in cryptocurrencies.
Companies that invest in crypto (sell, buy, or trade crypto) through an authorised crypto broker or exchange platform.
Mining: is the process through which Bitcoin transactions are verified and added to the blockchain. The goal of miners is to find a valid solution to complex mathematical problems. If they manage to solve these puzzles they are rewarded with new bitcoins and transaction fees.
Staking. It is very similar to mining but does not require large computer servers. Staking allows you to earn rewards in a simple way: all you have to do is keep your coins on the exchange.
Affiliate Programs. Some crypto companies reward you for attracting more users to their platform. This includes affiliate links, referrals, or some other discount offered to new users that you add to the platform.
NFT-tokens (non-fungible tokens). NFT is a type of digital document that confirms that an asset you have purchased is owned by you.
So what is needed in these cases? Usually this:
First you have to open a new account in the name of the company on the exchange or platform (Kraken, CEX.io, etc.). You cannot use your personal account, even if you change your name. It is necessary to open a new one for the company.
When you add money on the exchange or the platform, or when you later withdraw it from your company's regular bank accounts, you have to obtain a receipt or justification of the transfer from the platform and upload it to the control panel, on purchase invoices and sales invoices respectively.
The document of the money that enters the platform lets us understand that** it is not an expense, but a movement** towards this crypto exchange account that is part of your company's funds.
Documenting the money leaving the platform back to your corporate account allows us to understand that this is not a sale, but a withdrawal (return on investment) from your crypto exchange account.
Then, every month, you have to upload, in the bank statements section, a spreadsheet of the transactions and investment operations carried out with the company's money during the previous month. Most platforms offer this.
Consider your crypto exchange account as a "bank account", although not in the strict sense. Since you have company funds, we need to know what is happening with this money to do your accounting correctly.
Businesses that pay for goods or services using cryptocurrencies or receive customer payments in cryptocurrencies.
Those that pay salaries to their employees in cryptocurrencies.
Companies that invest in crypto (sell, buy, or trade crypto) through an authorised crypto broker or exchange platform.
Mining: is the process through which Bitcoin transactions are verified and added to the blockchain. The goal of miners is to find a valid solution to complex mathematical problems. If they manage to solve these puzzles they are rewarded with new bitcoins and transaction fees.
Staking. It is very similar to mining but does not require large computer servers. Staking allows you to earn rewards in a simple way: all you have to do is keep your coins on the exchange.
Affiliate Programs. Some crypto companies reward you for attracting more users to their platform. This includes affiliate links, referrals, or some other discount offered to new users that you add to the platform.
NFT-tokens (non-fungible tokens). NFT is a type of digital document that confirms that an asset you have purchased is owned by you.
So what is needed in these cases? Usually this:
First you have to open a new account in the name of the company on the exchange or platform (Kraken, CEX.io, etc.). You cannot use your personal account, even if you change your name. It is necessary to open a new one for the company.
When you add money on the exchange or the platform, or when you later withdraw it from your company's regular bank accounts, you have to obtain a receipt or justification of the transfer from the platform and upload it to the control panel, on purchase invoices and sales invoices respectively.
The document of the money that enters the platform lets us understand that** it is not an expense, but a movement** towards this crypto exchange account that is part of your company's funds.
Documenting the money leaving the platform back to your corporate account allows us to understand that this is not a sale, but a withdrawal (return on investment) from your crypto exchange account.
Then, every month, you have to upload, in the bank statements section, a spreadsheet of the transactions and investment operations carried out with the company's money during the previous month. Most platforms offer this.
Consider your crypto exchange account as a "bank account", although not in the strict sense. Since you have company funds, we need to know what is happening with this money to do your accounting correctly.
Updated on: 16/08/2022
Thank you!