The small Baltic state of Estonia is rapidly emerging as a leading blockchain hub, now hosting some 700 blockchain companies with foreign shareholders and challenging the Swiss city of Zug, also known as Crypto Valley, according[1] to a new research by ORS CryptoHound, a blockchain and artificial intelligence (AI) analytics startup.
ORS CryptoHound, which interviewed Estonian law firms, software developers and corporate services providers including NJORD Estonia, Comistar Estonia, Guardtime, Private Financial Services, Eesti Consulting, KRM Advisor and Consulting24.co, found that the four pillars that have helped Estonia pave its way to success are the possibility to set up and run businesses online, 0% taxes on undistributed profits, the ease of obtaining a cryptocurrency license, and advanced anti-money laundering regulations.
“Many entrepreneurs relocate their blockchain businesses to Estonia due to existing cryptocurrency regulations, favorable tax regime, and ease of doing business. More than 700 cryptocurrency/blockchain companies with foreign shareholders are running their blockchain business from Estonia,” said Dmitri Lihno, the head of Private Financial Services’ Estonian branch.
“I would say that Estonia is one of the world’s leaders in passing to a digital society and adopting blockchain. My counterparts from different countries are awed by the fact that one can set up a company in Estonia online in 20-30 minutes, and file taxes with a couple of clicks.”
Estonia has been building out its e-government since the mid-90s, and today still, the program continues to make headlines with bold digital initiatives including the e-Residency program, which allows non-Estonians access to Estonian services such as company formation, banking, payment processing and taxation.
e-Estonia, a movement by the government to facilitate citizen interactions with the state through the use of electronic solutions, has birthed e-services such as i-Voting, e-Tax Board, e-Business, e-Banking, e-Ticket, e-School, University via internet, the e-Governance Academy, as well as the
