Best Crypto Exchanges in Estonia

Best Cryptocurrency Exchanges in Estonia

Our comprehensive review of the 17 cryptocurrency exchanges available in Estonia has identified the top five choices for local investors. This in-depth analysis took into account several factors, including compliance with the Estonian Financial Intelligence Unit (FIU), support for Euro deposits, overall user experience, fee structures, range of cryptocurrencies, and available features. Below is a comparison of the best five platforms for Estonian traders.

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1. eToro 

eToro offers an extensive selection of over 4,500 financial assets, including leading cryptos such as Bitcoin, Ethereum, and Solana, alongside popular stocks like Apple and Coinbase. There are also a variety of Bitcoin ETFs, like iShares by Blackrock, plus commodities, such as Gold and Silver. This allows users to diversify and manage their portfolios on one single platform, simplifying the investment process. 

It is designed for ease of use, with a streamlined Euro deposit process and simple sign up experience with almost instant verification. The platform services over 30 million registered users across Estonia, Europe and 150 countries worldwide. Thanks to this global accessibility, eToro can be used in Estonian and provides customer support in the language through email.

• Fees: Variable spread fee model of around 1%.
• Supported Assets: Over 4,500 digital assets, ETFs, stocks and commodities.
• Regulation & Licensing: Registered with multiple European regulatory bodies and available in Estonia.‍
• EUR Deposit Methods: Bank transfers, debit cards, credit cards, and SEPA.

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2. Uphold 

Uphold is a cryptocurrency exchange based in London that offers a broad portfolio of over 250 digital assets for buying, selling, and staking. In addition to crypto, there are 27 fiat currencies and 4 precious metals to purchase, including Platinum, Gold, Silver and Palladium. It also provides staking services on 30 tokens, allowing users to earn up to 30% APY on their idle assets.

The unique selling point is the exchange’s audited proof-of-reserves feature. This provides real-time data showing how customer funds are being safeguarded, guaranteeing a 1:1 backing of all assets. This unprecedented transparency makes Uphold one of Estonia's most secure and reliable investment platforms. It also facilitates Euro deposits through several popular local payment methods.

• Fees: A 1% trading fee and a 1% spread fee are applicable.
• Supported Assets: 250+ cryptocurrencies, 4 precious metals, and 27 fiat currencies. 
• Regulation & Licensing: Uphold complies with European regulations under the Republic of Lithuania and is available in Estonia.‍
• EUR Deposit Methods: Bank transfer, SEPA, Google Pay, Apple Pay, credit card, debit card, and more.

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3. Kraken

Kraken is one of the oldest crypto exchanges globally. Founded in 2011, it has amassed 10 million registered users across Estonia and 160 other countries. It has secured strong market traction with impressive quarterly trading volumes exceeding $208 billion. Adapted to the needs of Estonian investors, it features a diverse collection of over 250 digital currencies, including key assets like Bitcoin, Ethereum, and Litecoin.

Focused on optimizing user experience, it has top-rated mobile apps, available on both the App Store and Google Play. Additionally, Kraken provides staking services, enabling Estonian users to earn up to 25% annual rewards (APY). Kraken Pro, its specialized trading interface, is designed to cater to retail and institutional traders in Estonia, offering advantages like low spreads, abundant liquidity, and substantial deposit limits.

• Fees: 0.16% for maker orders and 0.26% for taker orders.
• Supported Assets: Over 250 cryptocurrencies. 
• Regulation & Licensing: Kraken complies with Finantsinspektsioon (Estonian Financial Supervision Authority) regulations. ‍
• EUR Deposit Methods: Bank transfers, credit cards, debit cards, SEPA, Sofort and more.

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4. Bybit

Bybit is a top choice for crypto trading in Estonia, especially when it comes to derivatives. There are more than 1,100 assets to trade on spot markets and over 200 futures contract options with up to 100x leverage supported. It is home to over 30 million users and is available in Estonia and 160 other countries, with a multilingual interface that can be used in 20 languages and accepts deposits in 65 fiat currencies.

The platform puts a heavy emphasis on security and liquidity, especially in the derivatives markets. Whether you're interested in growing your assets through their "Earn" feature or looking for low-risk investments, Bybit has you covered. Founded in 2018 by Ben Zhou, the platform successfully combines traditional finance with decentralized options to offer a unique trading experience.

• Fees: 0.02% for maker orders, and 0.055% for taker orders. Spot trading is 0.1%.
• Supported Assets: More than 1,100 crypto assets.
• Regulation & Licensing: Regulated by CySEC and available in Estonia.‍
• EUR Deposit Methods: Bank transfer, SEPA, credit cards, debit cards, Wise, Zen and more.

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5. OKX

OKX is an exchange based in Seychelles that provides features tailored for Web3 users. It offers an extensive selection of over 300 cryptocurrencies and various advanced trading instruments like futures, options, and margin trading with up to 50x leverage. There is also an in-built wallet that allows for a smooth transition between centralized exchange services and decentralized finance platforms like AAVE and Uniswap.

It stands out for its rigorous focus on security and its straightforward interface. The platform has the most comprehensive DeFi offerings, such as on-chain staking, an NFT marketplace, a native blockchain and token. Its comprehensive API options and zero maker fees add to its attractiveness, particularly for institutional investors and Web3 enthusiasts looking for a reliable platform.

• Fees: 0% for maker orders and 0.2% for taker orders, with a standard 0.1% fee for instant spot trading. 
• Supported Assets: Over 300 cryptocurrencies. 
• Regulation & Licensing: Complies with financial regulations in Estonia.‍
• EUR Deposit Methods: Bank transfer, credit cards, debit cards, and SEPA.

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Is Crypto Regulated in Estonia?

Estonia's approach to crypto regulation is known for its strict laws and active oversight. Managed by the Estonian Financial Intelligence Unit (FIU), these regulations were strengthened with amendments to anti-money laundering laws effective from November 27, 2017. These laws require all entities offering services for the exchange of virtual currencies for fiat and those providing virtual currency wallet services to obtain licenses. This regulatory framework ensures a secure and transparent environment for digital currency exchanges.

The regulatory landscape saw further changes in April 2019 when the FIU introduced more stringent requirements for obtaining a cryptocurrency license. These new rules include paying a licensing fee, setting up a physical office in Estonia, and following strict customer identification procedures. The revocation of over 1,000 licenses in 2020 underscores the authorities' commitment to rigorous enforcement of these regulations.

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How is Crypto Taxed in Estonia?

In Estonia, the Estonian Tax and Customs Board handles cryptocurrency taxation. Income from trading, converting between cryptocurrencies, and using crypto for payments is taxed. Mining income falls under business income. The rules clearly define taxable and non-taxable activities. Transactions like donations and buying crypto with fiat are exempt. Gains from crypto transactions are taxed at 20%, calculated on the net gain between purchase and sale prices or the value of exchanged property. 

Cryptocurrencies are treated as property for tax purposes. Transactions resulting in taxable income must be reported in the tax return, with crypto values converted to euros based on the market rate at the transaction date.

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How to Buy Bitcoin in Estonia

Below is a detailed breakdown of the process for purchasing Bitcoin and other cryptocurrencies in Estonia when using a digital asset exchange.

1. Open an Account: Start by creating an account on your selected exchange. Visit the platform’s website and click on the "Sign Up" button. Enter your name, email address, and set a strong password. Complete the identity verification process, which typically involves uploading a photo ID (like a passport or driver's license) and possibly a selfie or proof of address.
2. Deposit Euros (EUR): Navigate to the deposit section of your account. Select Euros as your deposit currency and specify the amount you wish to transfer. Review the platform’s fees and limits to understand any associated costs and processing times. Confirm the deposit and follow any additional instructions to complete the transaction.
3. Select Cryptocurrency: To buy Bitcoin or other cryptocurrencies, go to the trading section. Enter the coin name or symbol in the search box, such as BTC for Bitcoin. Choose the EUR/BTC pair to view the current market rate. Review the available trading options, including market and limit orders.
4. Execute Trade: Click the 'buy' or 'trade' button to purchase your selected token. Enter the amount of Bitcoin (or another cryptocurrency) you want to buy, or specify the amount of EUR you wish to spend. Review the order details, including the price, fees, and total cost. Confirm the trade by clicking the 'buy' or 'confirm' button.

This step-by-step guide offers a thorough overview for Estonian users on how to start trading digital assets, from setting up an account to executing trades.

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Bottom Line

In conclusion, Estonia is a leading example in the world of cryptocurrency regulation, ensuring a secure and transparent environment for digital asset trading. There is strict oversight by the Estonian Financial Intelligence Unit (FIU) and comprehensive tax regulations by the Estonian Tax and Customs Board. For new investors, the top five platforms in Estonia are eToro, Uphold, Kraken, Bybit, and OKX, all offering diverse features and support for Euro deposits, making it easier to start trading.