Ibinex, a company that specializes in white-label solutions for cryptocurrency exchanges, has obtained a license to operate in Estonia. Besides exchange services, it also plans to offer both hot and cold wallets within the regulatory framework of the tech-savvy, crypto-friendly Baltic nation.
EU Registered Exchange and Wallet Provider
Authorities in Estonia have granted a license to Ibinex, a provider of white-label solutions for crypto exchanges and cryptocurrency trading software. In a post in the news section of its website, the company called the development “a big feather in the cap,” noting that it compliments its membership in The Financial Commission, an independent self-regulatory organization, since August, 2017.
The new Estonian license will allow Ibinex to provide a wide variety of exchange services and solutions for cryptocurrency traders, including fiat to crypto, crypto to fiat, and crypto to crypto transactions. The firm effectively enters the cryptocurrency exchange sector as a trading platform registered in an EU jurisdiction.
Ibinex is not going to restrict itself to only exchange operations. The company plans to start providing crypto wallet services, as well – both hot and cold wallets, which will be offered within the Estonian regulatory framework, the press release quotes its Chief Executive Officer, Simon Grunfeld. Ibinex will generate unique security keys for its users and will safely keep their encrypted keys. The platform will also offer storage and transfer of cryptocurrencies for their clients.
“This is the first of many licenses and registrations to come. Ibinex is excited to be one of the first licensed exchanges to be in accordance with Estonian legislation,” Grunfeld commented. The CEO of Ibinex also noted that “We’re seeing more formations of regulatory rulings for cryptos in the EU region, and due to this progressive stance, companies like ours can find a compliant framework, from which to operate under.”
A Crypto-Friendly European Jurisdiction
Estonia, one of the smallest European nations in terms of both territory and population, became the first EU member-state to propose the creation of a national cryptocurrency. Tallinn has recently backpedaled on its plans to issue the “Estcoin”, following criticism from the European Central Bank. In September, the bank’s president, Mario Draghi, stated that “No member state can introduce its own currency” in the Eurozone.
Nevertheless, the government intends to proceed with a limited scale project and Estcoin may eventually be used to support transactions within the Estonian e-resident community. The program has issued ID cards to 35,000 foreign nationals so far, the majority of which are from Finland, Russia and Ukraine.
This and other decisions and comments by Estonian officials prove that the country remains a truly crypto-friendly jurisdiction, willing to open its doors to more and more companies from the industry. Earlier this month, authorities in Tallinn granted licenses for wallet and exchange services to Coinmetro, another cryptocurrency trading platform which will operate from within the European Union.
Estonia’s neighbors are definitely not lagging behind. Cryptocurrencies are gaining popularity throughout the Baltic region, where businesses from multiple sectors, including real estate, online trade, the hospitality industry, and even healthcare, are already accepting crypto payments, as news.Bitcon.com reported. Some of them are offering their services globally.
Latvia has partially recognized cryptocurrencies for taxation purposes. Authorities in Riga said that bitcoin could “function as a means of exchange” and 20% tax was imposed on capital gains from crypto deals. Meanwhile, Lithuania has adopted comprehensive guidelines for cryptocurrency and initial coin offerings. According to some reports, the country accounts for up to 10% of all funds raised through ICOs last year.