According to Estonian AML law ’Virtual currency’ means a value represented in the digital form, which is digitally transferable, preservable or tradable and which natural persons or legal persons accept as a payment instrument, but that is not the legal tender of any country or funds for the purposes of Article 4(25) of Directive (EU) 2015/2366 of the European Parliament and of the Council on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, pp. 35–127) or a payment transaction for the purposes of points (k) and (l) of Article 3 of the same Directive;

‘Virtual currency wallet service’ means a service in the framework of which keys are generated for customers or customers’ encrypted keys are kept, which can be used for the purpose of keeping, storing and transferring virtual currencies;

The Estonian law recognizes the exchange of cryptocurrency (virtual currency) as a legal economic activity. In accordance with the decision of the Supreme Court of Estonia No. 3-3-1-75-15 of 11 April 2016, cryptocurrencies can be sold in Estonia, both in the form of the exchange of traditional (fiat) currencies in cryptocurrencies, and vice versa. Transfer of cryptocurrency is recognized as economic activity for Provider of a service of exchanging a virtual currency against a fiat currency. Thus, the cryptocurrency is recognized as a virtual currency, and Provider of a service of exchanging a virtual currency against a fiat currency can operate with cryptocurrencies. Service of exchanging a virtual currency against a fiat currency and virtual currency wallet service are regulated by Estonian Financial Intelligence Unit (FIU).