Estonia

Estonia is one of the most advanced and crypto-friendly countries in Europe, with a well-developed fintech sector and a supportive regulatory environment. Estonia was one of the first countries to legalize cryptocurrency activities and to issue licenses for virtual currency service providers (VCSPs) in 2017.

However, the regulation of crypto payments is not very clear and is subject to frequent changes. In 2022, Estonia introduced new requirements for cryptocurrency companies, such as stricter licensing procedures, enhanced due diligence, and increased supervision by the Financial Intelligence Unit (FIU). These measures were aimed to prevent money laundering and terrorism financing, as well as to align with the EU standards.

As of 2024, the regulation of crypto payments in Estonia is still evolving and depends on the type of service and the nature of the transaction. For example, crypto-to-crypto exchanges and wallet providers need to obtain a license from the FIU and comply with the anti-money laundering and counter-terrorism financing (AML/CFT) rules. Crypto-to-fiat exchanges and payment service providers also need to follow the same rules, as well as the Payment Services Directive (PSD2) and the Electronic Money Directive (EMD).

However, crypto payments are not considered legal tender or financial instruments in Estonia, and therefore are not subject to the same consumer protection and taxation rules as fiat payments.