Estonia's regulatory environment is transitioning to a MiCA-ready regime, making it a regulated jurisdiction for crypto-asset service providers (CASPs). While crypto is legal, the country has significantly tightened its anti-money laundering (AML) and capital requirements, leading to a more cautious and restricted operating environment. The main focus is on compliance with EU-wide standards and enhanced supervision by the EFSA. Regulated by Estonian Financial Supervision Authority (EFSA).

Notable features: MiCA-ready regime, Flat 20% personal income tax on crypto gains, Zero corporate tax on retained profits, High capital requirements for CASPs

Crypto-asset service providers (CASPs) must obtain an operating license from the Estonian Financial Supervision and Resolution Authority (FSA). This is a transition from the previous VASP registration under the Money Laundering and Terrorist Financing Prevention Act to a full MiCA-compliant license, with existing licenses expiring by July 2026. The application process is extensive, requiring detailed information on governance, prudential safeguards, and AML/KYC procedures.

Cryptocurrency is generally treated as property for tax purposes. Gains from the sale or exchange of crypto are taxed as income at a flat rate of 20% for individuals, with no separate capital gains tax. Crypto-to-crypto exchanges are considered taxable events. From 2026, the Estonian Tax and Customs Board (ETCB) will implement new reporting obligations for crypto-asset service providers under DAC8/CARF.

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https://www.fi.ee/en/investeerimine/investeerimisvaldkonna-tegevuslubade-taotlemine/kruptovaraturu-tegevusluba,https://www.lightspark.com/knowledge/is-crypto-legal-in-estonia,https://www.emta.ee/en/private-client/taxes-and-payment/taxable-income/cryptocurrency,https://www.ey.com/en_gl/technical/tax-alerts/estonia-significant-tax-changes-apply-in-2025-2026