Estonia

2.41% of Estonians own cryptocurrency

How many cryptocurrency owners are in Estonia?

It is estimated that over 30,000 people, or 2.4% of Estonia’s total population, currently own cryptocurrency.

What is the nature of Cryptocurrencies like in Estonia?

Estonian cryptocurrency regulations are open and innovative, especially compared to those of other EU member states. Although not accepted as legal tender, Estonia’s government regards cryptocurrencies as “value represented in digital form”: accordingly, it classifies cryptocurrencies as digital assets for tax purposes but does not subject them to VAT. In 2017, the Anti-Money Laundering and Terrorism Financing Act introduced robust new regulations for cryptocurrency businesses operating in Estonia.

A number of cryptocurrency initiatives with potentially significant regulatory consequences have been mooted in Estonia, including a speculative government plan to introduce a national cryptocurrency known as “estcoin”. After EU criticism, Estonia’s government stepped back from the plan but continues to examine ways to use the estcoin within a government “e-residency” program. Advancing its 2020 objectives, the Estonian Government Anti-Money Laundering Commission stated that it would focus on cryptocurrency oversight in 2021, with “a number of important regulatory changes” planned for the future, including enhancements to customer identification obligations, payment services, and record keeping.

Cryptocurrencies' rising popularity in Estonia

  • Intrado: Licensed Cryptocurrencies Exchange “UnitEx” Launches In Estonia – March 2021
    Cryptocurrency exchange “UnitEx” was launched in Estonia, one of the leading European countries in developing the cryptocurrency market. The trading platform is registered for cryptocurrencies, fiat, and digital operations of cryptocurrencies, fiat, and digital currencies, as well as cryptocurrency wallet management. The “UnitEx” trading platform listed the most liquid digital coins, such as Bitcoin (BTC), Ethereum (ETH), and EOS. Also, it listed the tokens of the Cryptocurrencies unit's blockchain: the backed stablecoin USDU, the utility token UNTB, and the token CRU, which can be traded in pairs with USDU, BTC, ETH, and EOS. Users can also purchase stablecoins USDU for fiat – US dollars and euros.
  • Cointelegraph: Estonian central bank to conduct cryptocurrency research – October 2020
    The Estonian central bank, Eesti Pank, announced the launch of a research program to study how to build a cryptocurrency infrastructure. According to a statement, Eesti Pank partnered with technology companies SW7 Group and Guardtime for the research project. It aims to see if a keyless signature infrastructure (KSI) blockchain solution can run its virtual currency program. Estonia already uses KSI blockchain technology for its e-government services. The bank’s project will also look into new payment solutions “that can be made possible by using electronic IDs and other Estonian e-government solutions.”
  • Coindesk: Estonia Inches Closer to National ‘Cryptocurrencies Token’ Launch – December 2017
    In a blog post published today, Kaspar Korjus, managing director of the country’s e-Residency initiative, set out three possible use cases for the token – dubbed “estcoin” – that have emerged since the concept was first aired in August. As Korjus noted in his blog post, the concept quickly went viral, with speculation that Estonia might become the first country to issue its own dedicated cryptocurrency. And while the e-Residency program isn’t yet launching the token, Korjus laid out some of the conceptual groundwork in the new blog post, noting the different ways in which the cryptocurrency might be used, as well as how the e-Residency program could serve as a basis for how initial coin offerings within the Baltic nation could be conducted.