Crypto license in the Czech Republic

The Czech Republic is emerging as the most cost-effective, expedient, and user-friendly jurisdiction within the European Union for cryptographic assets and blockchain ventures. Solely regulated by the Czech National Bank, the financial landscape here offers an unparalleled setting conducive to crypto-businesses.

Fintech Simple delivers a comprehensive suite of services designed to facilitate the seamless acquisition of a crypto license in the Czech Republic. We offer options ranging from a fully managed package that ensures turnkey compliance, to providing clients with pre-structured entities already possessing an active license.

Choosing Fintech Simple as your legal partner in securing a Czech Republic crypto license offers unparalleled advantages, setting us apart from our competitors

Expertise

We possess an in-depth understanding of the Czech regulatory environment, specifically tailored to the emerging crypto landscape. Our team is well-versed in the nuances of local laws and can guide you through the intricate process with ease

Cost-Effectiveness

The Czech Republic is known for its affordable licensing process. We capitalize on this by offering transparent pricing without hidden costs, ensuring you get the most bang for your buck

Turnkey Solutions

We provide end-to-end services that include company formation, documentation, and securing your crypto license. You don't have to engage multiple agencies; we offer it all under one roof

Global Standards

While we specialize in Czech Republic regulations, our expertise is global. We can advise you on how to integrate your Czech business within the broader EU and global markets

Speed

Time is money in any business. The Czech Republic offers one of the most efficient timeframes for license obtainment, and we ensure you hit every deadline

Local Partnerships

Our established relationships with local authorities and financial institutions accelerate your application process and enhance the likelihood of approval

Client-Centric

We are committed to offering personalized services tailored to your specific needs. Our dedicated client managers are always a call away, ensuring continuous support

Competitive Edge

Leveraging the Czech Republic's progressive stance on crypto technologies, we can provide insightful strategies that place you ahead in the market

Choose Fintech Simple and elevate your crypto business to unparalleled heights

Comprehensive Crypto Licensing in the Czech Republic: Your Advantages and Obligations

The Czech Republic is rightfully considered one of the most attractive jurisdictions within the European Union for conducting cryptocurrency business. The country's financial market is supervised solely by the Czech National Bank, which also oversees cryptocurrency-related activities. In this context, the initiative of Blockchain Connect / Czech Alliance, launched in 2018, deserves special attention.

This alliance aims to develop and implement blockchain technologies, and its formation underlines the state's interest in advancing innovative financial technologies at a national level.

We, for our part, offer a full range of services to obtain all the necessary authorizations for cryptocurrency-related activities in this favorable jurisdiction, providing you with legal certainty and business comfort.

Service Packages for Obtaining a Crypto License in the Czech Republic

Choose from one of our carefully designed packages to get your Czech crypto license or get in touch for a custom solution tailored to your needs

Silver Package:
The Essential Start

€ 1900

Up to 2 weeks

Comprehensive Company Formation
VASP (Virtual Asset Service Provider)
Registration with Regulatory Body
Standard AML/KYC Policies

Gold Package:
The Exhaustive Setup

€ 4500

Up to 3 weeks

Comprehensive Company Formation
VASP (Virtual Asset Service Provider)
Registration with Regulatory Body
One-Year Registered Address
Custom AML/KYC Policies
Liaison with the Financial Analytical Unit (FAU)

Platinum Package:
Full-Spectrum Service

€ 6900

Up to 4 weeks

Comprehensive Company Formation
VASP (Virtual Asset Service Provider)
Registration with Regulatory Body
One-Year Registered Address
Custom AML/KYC Policies
Liaison with the Financial Analytical Unit (FAU)
Apostilled and Translated Corporate Documents
Assistance in Opening a Corporate Account for Crypto Activities
Recruitment and Integration of Local AML Officer

Each package offers a varying level of services to match your specific needs. Don't hesitate to contact us for more personalized assistance

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Criteria for obtaining a crypto license in THE CZECH REPUBLIC

According to Czech AML legislation, cryptocurrency is defined as a unit capable of being electronically stored or transferred, performing payment, exchange, or investment functions, regardless of whether it has an issuer or not. Exceptions include financial instruments (as defined by MiFID), electronic money (as defined by the E-Money Directive), or fiat currency in any form. Therefore, the Czech definition of virtual currency encompasses all utility tokens, including some stablecoins. However, operations with security tokens may require an additional license.

It's important to note that some types of activities related to crypto-assets may require additional licenses (e.g., investment firm license, asset manager, or fund manager licenses).

However, there are no restrictions or licensing requirements for companies that:

Accept virtual currency as payment for goods or services
Operate mining facilities or engage in combined mining
Issue game currency (e.g., a computer game operator issues game currency that is not a virtual currency)

It's advised to consult with our lawyers for determining whether a crypto license in the Czech Republic or another financial license is required

Advantages of Czech Republic Crypto License

One of the fastest licenses in the EU, obtainable in 2-3 weeks
Allows to onboard EU customers freely
No local substance requirements, meaning that the company director, AML officer, and HQ can be located abroad
No strict qualification requirements for senior management

One of the most attractive tax regimes in the EU
Costs for initial legal setup and maintenance vary from 1500 to 10000 EUR
No share capital requirements
Thus, obtaining a license in the Czech Republic offers a profitable and efficient way to enter the EU's cryptocurrency market

Types of Crypto Licenses in the Czech Republic

Czech legislation does not specify separate types of licenses for crypto activities. However, a license may be obtained under activity No. 81 "provision of services related to a virtual asset." The Czech AML Act defines a crypto company as an entity involved in buying, selling, storing, managing, transferring, or mediating the purchase or sale of a virtual asset.

For this reason, the Czech crypto license covers the following transaction types:

Exchange of Fiat Currency to Virtual Currency and Vice Versa

This license type is required when exchanging cryptocurrency for a fee. It encompasses various types of cryptocurrencies and allows for instant exchange transactions

Exchange of One Virtual Currency to Another

This license allows a firm to exchange one digital currency for another or for fiat for a fee. It can also include additional services like atomic swaps or exchanges on decentralized platforms

Custodian Wallet Service

When providing the exchange services mentioned in items 1 and 2, this license enables the company to store clients’ wallet private keys in a secure and encrypted form

Virtual Currency Transfer Service

This license type is designed for companies introducing wallets for storing cryptocurrency, creating encrypted client keys, and storing them. It could include international transfer services and even microtransactions within blockchain networks

Each of these licenses requires strict adherence to AML and KYC norms, as well as monitoring and reporting obligations

PROCEDURE FOR OBTAINING A CRYPTO LICENSE IN THE CZECH REPUBLIC: OPERATIONAL SETUP

Stage 1

Initial Documentation Preparation

Collecting basic information from the client
Providing a preliminary document package
Clarifying project scope and budgets
Verifying the chosen business name

Stage 2

Limited Liability Company Formation

Translation of power of attorney and criminal record certificates into Czech
Notarial deed of company registration
Entering company data into the trade register

Stage 3

Cryptocurrency Licensing Process

Gathering additional business details from the client
License application submission
Appointment and training of an AML officer

Stage 4

Corporate Account Opening and Accounting

Analysis and selection of suitable banks or Electronic Money Institutions (EMIs)
Collection of required documentation to initiate the process
Development of accounting rules for the cryptocurrency company

Stage 5

Risk Management and Compliance Monitoring

Comprehensive risk assessment
Development and implementation of a Risk Management Plan
Regular updates of monitoring plans and programs

COMPREHENSIVE Criteria for obtaining a crypto license in THE CZECH REPUBLIC

Implementation of Internal Policies

The company is required to have established Anti-Money Laundering (AML) and Know Your Customer (KYC) policies, along with comprehensive internal control mechanisms

Designation of a Compliance Officer

Companies must appoint a dedicated employee responsible for ensuring adherence to AML/Counter-Terrorist Financing (CTF) obligations

Customer Identification and Monitoring

Obligatory identification of customers and continuous monitoring of the business relationships is a must

Adherence to International Sanctions

Companies are obligated to comply with international sanctions regimes

Data Storage Requirements

The firm is required to securely store customer data, including transaction records, for a mandated period of time

Suspicious Transaction Reporting

An obligation exists to promptly report any suspicious transactions or activities that could potentially involve money laundering or fraud

Integrity of Shareholders and Management

Shareholders and senior management must possess a reputable business standing and have a clean criminal record

Risk Assessment

Companies must implement a risk-based approach in conducting licensed activities, taking into consideration risks identified through a national risk assessment

Compliance with Local and International Laws

Companies must fulfill all other obligations that arise from local, national, and international legislation

Financial Audits

Regular third-party financial audits may be mandated to ensure transparency and compliance with financial norms

Security Measures

Implementation of state-of-the-art security measures to protect customer data and assets is highly recommended

No Local Substance Requirements

The Czech Republic does not stipulate the need for local substance, including a local office, director, or AML Officer. This provides foreign investors with flexible options for company management

This comprehensive set of criteria aims to uphold the integrity of the financial ecosystem while encouraging the responsible growth of the crypto sector in the Czech Republic.

Blockchain Connect / Czech Alliance: An Innovative Initiative for Advancing Blockchain in the Czech Republic

Established in 2018, the Blockchain Connect / Czech Alliance represents a crucial milestone in the development of the Czech Republic's innovative ecosystem. The alliance serves as a platform for collaboration among key stakeholders including government bodies, the corporate sector, and academic and research institutions. This initiative aims to develop, test, and implement blockchain technologies across various sectors—from financial services and healthcare to logistics and education.

The alliance is actively engaged in conducting research, developing technological standards, and offering regulatory recommendations. These actions aim to create a conducive regulatory and operational environment that fosters the growth and deployment of blockchain solutions.

State support for the initiative is a key factor in ensuring its success and in contributing to the Czech Republic's competitiveness on a global level. This initiative is fully aligned with the country's strategic goals of stimulating innovative development and ensuring economic stability.

Services Offered with a Czech Crypto License

Companies holding a crypto license in the Czech Republic are empowered to offer a wide range of services related to virtual assets.

Below are some of these:

Crypto Regulation in the Czech Republic

Several laws and regulations govern cryptocurrency activities in the Czech Republic. Among the most critical is the Anti-Money Laundering (AML) Act, which defines cryptocurrency companies as entities involved in buying, selling, storing, managing, or transferring virtual assets.

Key Aspects of Regulation

Licensing

A pertinent license, typically under activity No. 81 "provision of services related to a virtual asset," is required to operate in the cryptocurrency sphere

KYC and AML

Companies are required to adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) standards, including client identification and verification

Reporting

Obligations to report to regulators and financial institutions are in place

Tax Legislation

Cryptocurrencies are subject to taxation, and companies must comply with the relevant tax norms

Fines and Sanctions

Non-compliance can lead to fines and other sanctions, up to and including license revocation

Additional Regulations

Banks Act – Regulates banking activities and can provide insights into custody services

Business on the Capital

Market Act – Contains definitions of financial instruments and requirements for transactions involving such instruments

Investment Companies and Investment

Funds Act – Governs the basic principles of asset management and requirements for fund managers

FAQ

What does the full licensing package include?

The full package includes company formation, regulatory registration, preparation of all necessary documents and policies, as well as assistance in opening a corporate account.

What documents are required to start the process?

We will need KYC documents, a business description, proof of funds, among others.

How long does it take to obtain a license?

On average, the process takes 2 to 4 weeks.

What are the requirements for company management?

There are no strict requirements, except for providing a certificate of no criminal record.

Are there any share capital requirements?

No, there are no share capital requirements.

What is an AML/KYC policy?

It's a policy that governs client identification and anti-manipulation measures.

What additional licenses may be required?

Depending on your activities, investment or asset management licenses may be needed.

What are the taxes for crypto companies in the Czech Republic?

The Czech Republic offers one of the most attractive tax regimes in the EU.

What is FAU?

FAU (Financial Analytical Unit) is the Czech financial regulatory authority.

Can I service EU clients?

Yes, the license allows you to onboard EU customers freely.

What are EIDAS verification methods?

These are standard electronic identification methods in the European Union.

What is included in the "Individual" package?

This package includes basic services for starting operational activity, excluding some additional options.

What is included in the "Essential" package?

This package includes only the minimum services for regulatory registration.

What are the risks of opening a crypto company in the Czech Republic?

The risks are minimal, but legal consultation is always advised.

Can I change the service package after the process has begun?

Yes, but it may affect the timing and cost.

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