Crypto Accounting

Crypto Accounting for Estonian Companies

Cryptocurrency accounting is not ordinary bookkeeping. Prices move by the minute, a single exchange exports thousands of lines, wallets and fiat rails have to be reconciled, and the tax, MiCA and AML treatment differs from that of a normal trading company. We account for your company’s crypto activity correctly under Estonian law - every transaction reviewed by an accountant, valued in EUR, and ready for the Tax Board and, where relevant, CASP authorisation and supervision.

Whether you run a MiCA-authorised crypto-asset service provider (CASP), a crypto-trading OÜ, a Web3 / DeFi project, an NFT business, or you are an e-resident holding digital assets in an Estonian company, the same principle applies: the books must show, in euros, where every coin came from and where it went.

How Crypto Is Taxed in Estonia

Estonia’s corporate tax system is what makes it attractive for crypto businesses:

• 0% tax on retained profits. There is no corporate income tax while profits stay inside the company, so reinvested trading gains are not taxed year to year.
• Tax only on distribution. When you pay out profit, income tax applies at 22/78 of the net amount (22% since 2025). We model distributions in advance so there are no surprises.
• Revenue vs. cost. Commissions and trading gains are revenue; exchange fees, network (gas) fees, and platform costs are deductible business expenses.
• Salaries in crypto. If you pay employees or contractors in cryptocurrency, it is payroll - reportable via TSD and subject to the usual payroll taxes, valued in EUR at the payment date.

VAT on Cryptocurrency

Exchanging cryptocurrency for fiat or for another cryptocurrency is VAT-exempt as a financial service - settled EU-wide by the European Court of Justice in Skatteverket v. Hedqvist (C-264/14). But not everything a crypto company does is exempt: custody services, consulting, development work, and SaaS revenue can be VAT-taxable. We map each of your revenue streams to the correct VAT treatment and handle KMD (VAT) and, where relevant, OSS/IOSS filings.

MiCA / CASP and AML Compliance

The transition is over. Since 1 July 2026, crypto-asset services in Estonia may be provided only by companies authorised by Finantsinspektsioon or another EEA competent authority under MiCA. The Financial Intelligence Unit’s old virtual-currency service-provider licence records were cancelled on that date - a legacy licence is not a grace period, it is simply gone.

A company without authorisation must stop or limit its activity: no new clients, no new accounts, and no active marketing of crypto services to clients in the EEA. Whether any given provider is authorised is a matter of public record - the current list is in the Finantsinspektsioon CASP register, and it is worth checking rather than assuming.

What this means for your books, depending on where you landed

• Authorised as a CASP. Supervision is now continuous rather than a one-off application. Expect to evidence client-asset segregation, own-funds levels, internal controls and risk management on an ongoing basis - all of which run on accounting data. Books kept “well enough for the Tax Board” are not the same standard.
• Not authorised, winding activity down. The accounting question becomes how to return or transfer customer balances cleanly, how to value what is left in EUR, and how to document the wind-down so it survives later scrutiny. This is the case we are asked about most.
• Operating cross-border on another EEA authorisation. The licence travels; the Estonian bookkeeping, VAT treatment and annual report obligations do not go away. Both regimes have to reconcile to the same numbers.

Accounting and compliance are tightly linked:

• Authorisation-ready evidence. CASP applications and supervision require clear accounting data, internal controls and risk-management documentation.
• Segregation of funds. The company’s own assets must be kept separate from customer balances in both the wallets and the books.
• Traceability. Every transaction must be traceable to a business wallet held in the company name, with Travel Rule and source-of-funds documentation on hand.

We do not replace legal counsel, but we prepare the accounting data and audit trail, keep the books review-ready all year, and coordinate with your legal and compliance advisers and auditors.

What We Do Each Month

Monthly bookkeeping

• Record every wallet and exchange transaction (date, amount, EUR value at the transaction rate)
• Value crypto holdings as inventory in euros
• Separate company assets from customer balances
• Record commission and trading revenue; book exchange, network, and platform fees as costs

Tax compliance

• Annual profit statements (0% until distribution)
• Dividend / distribution tax calculation at 22/78
• Employee crypto-salary reporting via TSD, where applicable
• KMD / VAT and OSS/IOSS filing where the activity is taxable

Regulatory support

• Accounting-data support for MiCA/CASP materials
• Audit trail preparation for internal and external controls
• Transaction-history archiving with the 7-year retention rule

How are crypto assets reflected in the annual report?

Crypto assets are usually not the same as cash held in a bank account. The accounting treatment depends on why the company holds the asset: trading or resale inventory, an investment holding, fee income, or client assets that must be segregated from the company’s own assets.

We start with the purpose of the transaction and the evidence: wallet addresses, exchange statements, bank movements, EUR value on the transaction date, and proof of whose asset is actually moving. That lets the annual report use the same logic in the balance sheet, income statement and notes.

On the tax side, the usual Estonian corporate principle applies: retained profits are not taxed, while profit distributions are taxed at 22/78 of the net payout from 2025. Gains and losses from crypto transactions still need to be recorded in the books, so future distributions, audits or investor reports do not rely on manual reconstruction.

On the regulatory side, MiCA has already changed the market. Since 1 July 2026 crypto-asset services in Estonia may be provided only by companies authorised by Finantsinspektsioon or another EEA competent authority, and the legacy FIU licence records were cancelled outright rather than allowed to lapse. CASP authorisation and supervision require clear accounting, client-asset segregation procedures, internal controls and risk-management documentation. We do not replace legal counsel, but we make the accounting data and supporting evidence usable for that process.

How We Work

You provide - monthly wallet and exchange statements (Excel/CSV), the bank transfers tied to your crypto activity, and invoices for commissions and fees.

We process - EUR conversion at transaction-date rates, identification of taxable events (sales, swaps, distributions), and draft reports by the 15th of the following month.

We file - KMD/TSD declarations where you are registered, and the annual report by the 30 June deadline.

Common Mistakes We Fix

• Trading through a personal wallet instead of a company wallet, breaking the audit trail.
• Booking crypto at cost and ignoring EUR valuation at the transaction date.
• Mixing customer funds with company funds - a red flag for both the Tax Board and MiCA supervisors.
• Treating exempt exchange revenue and VAT-taxable service revenue the same way.
• Leaving a dormant company unfiled and missing the annual report deadline.

Why Choose ProfBalance

• Every transaction reviewed by an accountant - no blind software imports that quietly misclassify swaps.
• Estonian compliance focus - current with MiCA/CASP, AML and EMTA requirements.
• Crypto-specific knowledge - correct treatment of VAT-exempt exchanges, inventory valuation, and Travel Rule documentation.
• Trilingual - we work in Estonian, Russian, and English, in person in Tallinn or fully remotely.

Sources: Finantsinspektsioon guide to the operating licence in markets of crypto assets, the CASP register and EMTA 2026 tax rates.