The project is undoubtedly regulated since it is associated with operations with virtual assets. It also provides the opening of bank (card) accounts and issuing bank cards to our clients.
An Estonian company is an obligated person within the meaning of the Estonian Law on Prevention of Money Laundering and the Financing of Terrorism (hereinafter referred to as the AML Law), since it will hold a Virtual Currency Service Provider License (hereinafter referred to as text — "Crypto License"), which gives us the right to carry out the following activities:
- exchange of virtual assets for fiat money
- exchange of fiat money for virtual assets
- exchange of virtual assets for virtual assets
- storage of virtual assets on behalf of clients
- transfer of virtual assets between wallets
This license is issued by the Financial Intelligence Unit of Estonia (hereinafter referred to as “FIU”), independent of the Estonian police, so that the company is accountable to this body — FIU (based on the requirements of the AML Law). Accordingly, the company will operate and provide its services exclusively within the boundaries of the legislative field.
As a holder of a virtual asset service provider license, the company is obliged to comply with the requirements provided by the AML Law (as well as the 4th, 5th, 6th EU Directives), including:
- Passing the Know Your Client procedure (hereinafter referred to as "KYC") for the company's clients
- Screening of Politically Exposed Persons (PEP)
- Tracking suspicious transactions
- Screening clients for financial sanctions imposed on them by authorities such as the Office of Financial Sanctions Enforcement ("OFSI-UK"), the Office of Foreign Assets Control ("OFAC-US"), and EU sanctions.
You can read more about the measures taken by the company concerning combating money laundering and terrorist financing in our Policy on combating money laundering and terrorist financing.
Taking into account the above information, it becomes obvious that the Estonian tax authority (as well as the tax authorities of other EU countries) will reasonably and adequately respond to transactions made with virtual assets both by our company and by our partners and clients, since the company's activities will be carried out exclusively within the framework of the laws.
Banks will carry out card accounts and issue customer cards with a full banking license. The first will be banks operating under Ukrainian legislation.