Public sector started applying similar technology for optimizing the performance of state agencies long before the global discovery of distributed ledgers. “Timestamping” (now referred to as Keyless Signature Infrastructure) was developed by Guardtime back in 2007, and was first employed in official, state-maintained registries in 2012. Estonia is also one of the first EU member states in regulating cryptocurrency exchange businesses and transposing the EU’s 5th AML Directive.
Estonia is a blockchain-technology and crypto-friendly jurisdiction, because:
- Although there is a lack of clarity and regulations about blockchain-based business models, authorities and regulators treat blockchain as opportunity, not as a risk;
- its thin bureaucracy in Estonia, definitely not over-regulated jurisdiction;
- Estonian authorities are accessible;
- Estonian authorities are ready to communicate in English;
- Access to “cryptocurrency licenses”: cryptocurrency exchange and cryptocurrency wallet services;
- Estonian e-residency system makes managing Estonian company and communication with authorities easy;
- Unique corporate income tax system (as far as funds stay in the company, no income tax).
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