Czech Crypto License

Czech Crypto License

• Obtaining a Czech crypto license is now hassle-free with Tetra Consultants’ assistance. As a cryptocurrency business owner, it might be tough to choose a specific jurisdiction because there are so many reputable and trustworthy countries for launching a cryptocurrency business. Investors should evaluate a number of things before deciding on the Czech Republic as their cryptocurrency company’s headquarters. For instance, if it is entirely legal to use bitcoin for cryptocurrency transactions. 
• The Czech Republic sees itself as a leader in the sector of cryptocurrencies. For example, Prague is home to the first Bitcoin-only café in the world, has one of the highest densities of Bitcoin ATMs in the world, developed the first hardware wallet and mining pool, and allows you to pay your gas bill in Bitcoin. Additionally, a start-up business in the Czech Republic can raise financing using cryptocurrencies as this is possible through ICOs. There are 42 ICOs in the Czech Republic, and citizens there can simply take part in these processes. The Czech Republic, which is ranked 6th among 249 nations on the list, offers one of the most alluring marketplaces for cryptocurrency operations globally.
• You must be familiar with the characteristics of the Czech legal system in order to operate and apply for the Czech Crypto License. It will be challenging for you to comprehend the legal system if you are the owner of a foreign corporation and wish to operate lawfully within the EU. Therefore, it is always preferable to seek the assistance of consultants who focus on this practice area. They will ensure that the documentation has been filed out correctly, confirm that it is legally authorized, and instruct you on what to look for when registering a company. Tetra Consultants’ team of professionals will perform a thorough consultation, respond to any inquiries, and offer suggestions for how to expedite the cryptocurrency license issuing.

What are the advantages of obtaining a Czech Crypto License? 

The Czech Republic is one of the best countries to start a crypto business and obtain a Czech crypto license. Our team of experts advises you to read through this section to know the potential advantages of forming a cryptocurrency business in the jurisdiction. 

• Businesses that deal in cryptocurrencies in the Czech are now subject to the same regulations as financial institutions. It implies that such companies and businesses dealing in cryptocurrencies are well protected, in contradiction to many other nations.
• Operating in a secure environment of the Czech Republic with proper authorization is made possible by effective Czech effective regulation and governmental oversight. By understanding that the business is adequately safeguarded and controlled, customers are more likely to trust it.
• In this nation, traditional transactions and cryptocurrency are not the same. Even though the utilization of cryptocurrency is very flexible your account cannot be interred and withdraw the cryptocurrency since these operations are extremely protected and private.
• There are low tax rates with no tax on any capital gains or reinvested income, as well as minimal yearly fees for maintaining a crypto company.
• The Czech government is financially and politically stable and further particularly committed to the growth of international commercial relationships, which supports ongoing, active development and maintenance of cryptocurrency businesses.
• Czech is considered an advantageous nation for cryptocurrency operations additionally owing to simple business registration requirements, cheap taxes, minimal maintenance expenses, no restrictions on residency status, and several other benefits.

What are the laws governing a Czech Crypto License? 

• A thorough set of regulations for bitcoin enterprises has not yet been created in the Czech Republic. Currently, there is no distinct regulatory framework for cryptocurrency activity, and cryptocurrencies are not regarded as a kind of legal tender. The majority of cryptocurrency businesses that engage in business operations linked to cryptocurrencies must abide by standard laws intended to protect the Czech financial sector. 
• Czech Republic remains one of the first EU nations to adopt legislation governing virtual currencies and their legal status. The “Security of Internet Payments and Cryptocurrency” summary was filed by National Bank President Miroslav Singer in April 2015. Based on the filed document, if there are no guidelines from Czech law, then this text establishes that EU rules apply to virtual currencies. Hence, the Czech Republic is still among the most stable nations when it comes to virtual currency regulation. This strategy promotes the development of blockchain-based fintech businesses and boosts the growth of foreign investment in the nation. Additionally, all pertinent EU regulations are followed, such a permissive approach stimulates entrepreneurship and experimentation with quickly developing offerings and services.
• AML/CFT regulations governing cryptocurrency business in the Czech Republic: Even though there is almost no regulatory oversight of cryptographic activities in the Czech Republic, the government has implemented the fourth EU Anti-Money Laundering Directive (4AMLD), the fifth Anti-Money Laundering Directive (5AMLD), and the sixth Anti-Money Laundering Directive (6AMLD), which require cryptocurrency exchanges and crypto purse providers to implement stringent internal AML/CFT procedures. These guidelines cover standard due diligence procedures, intelligence collection, documentation, and storage, AML/CFT risk assessment, beneficial ownership, and reporting suspicious transactions. They also cover how to conduct customer transactions and improve customer due diligence for customers depending on high-risk jurisdictions. 
• MiCA regulations: The Czech Republic transposed MiCA regulations via its Digital Finance Act, effective February 15, 2025, which required that all crypto-asset service providers obtain a full CASP license, replacing the previous VASP regime. Licenses will be tiered based on the types of services engaged in and imposed capital requirements of €50,000 – €8 million, along with due governance, AML/KYC compliance, risk management, client asset separation, and reporting obligations. Licensed companies are entitled to operate with EU-wide passporting and EU harmonization of a single legal framework, which improves consumer protection and market integrity, as it is subject to supervision from the Czech National Bank. 
• In actuality, national regulatory bodies have gone further, including a larger spectrum of cryptography-related commercial operations. As a result, companies that deal in, store, maintain, or mediate the acquisition or selling of virtual currencies or provide other services relating to cryptography are subject to AML/CFT regulations. Virtual currency is defined in this sense as a digital asset that does not qualify as fiat money but is still recognized as a form of payment by parties who are not the unit’s issuers. The following anti-money laundering/terrorist financing laws apply to companies engaged in crypto-related economic activities in the Czech Republic:
• The AML Act (Act 253/2008 Coll.), which sets out the principles of the AML/CFT
• Money Laundering Ordinance (Decree No 281/2008 Coll. ), which provides requirements for corporate policies and procedures in the field of combating money laundering/terrorist financing
• Criminal Code (Law No. 40/2009 Coll.), which defines criminal acts
• Law on International Sanctions (Law No. 69/2006 Coll. ), which provides the rules for the imposition of international sanctions
• General laws governing cryptocurrency business in the Czech Republic: General legislation can help cryptographic companies to understand where their activities should be located within the current regulatory framework of the financial market. Companies engaged in activities related to cryptography in Czech should consider the following general laws governing financial services:
• Trade Licensing Act (Act No. 455/1991 Coll.)
• Law on Banks (No. 21/1992 Coll.)
• Act on Obligations on the Capital Market (No. 256/2004 Coll.)
• Law on Management Companies and Investment Funds (Law No. 240/2013 Coll.)
• Law on Insurance (No. 277/2009 Coll.)

What are the types of Czech Crypto Licenses?

• At this time, it cannot be claimed that comprehensive regulations for the crypto business have been enacted in the Czech Republic. But the nation has already made a lot of progress in this regard. This has led to the development of a flexible licensing system where a corporation may select the kind of permit that is appropriate for its activities.
• Therefore, obtaining a work permit is necessary if you wish to work in the Czech Republic without running into legal issues. It should be noted that there will not be any issues with this if you work authentically and transparently. There is no corruption or bureaucracy here, but your business must abide by all rules set forth by the state regulator.
• In Czech, there is no specific license types that have been implemented like for cryptocurrency exchanges in Lithuania or Estonia. Since this kind of asset is regarded as a commodity in the Czech Republic, a cryptocurrency exchange license is identical to a standard trading license or permit.

Different classes of Czech crypto licenses

• Class 1: services include the purchase, sale, or offering of crypto-assets, portfolio management, transfer, order execution, token placement, and investment advice; minimum paid-up share capital is €50,000. 

• Class 2: includes all class 1 services, custody of crypto-assets, and exchange for fiat or other crypto-assets; minimum paid-up share capital is €125,000. 

• Class 3: includes all class 2 services plus management of trading platforms, infrastructure, and maintenance of liquidity; minimum paid-up share capital is €150,000. 

What are the activities allowed under a Czech Crypto License? 

Having a Czech cryptocurrency license gives its holder the ability to provide the following services to his clients:

• Exchange one digital currency for another and real money (crypto vs fiat exchange) and vice-versa (fiat vs crypto exchange).
• Create cryptocurrency wallets to store customers’ money on them.
• Make transactions between customer accounts.
• Provide processing services.
• Open accounts for business, including online trading (merchant accounts).
• Provision of a crypto wallet service (custodian crypto wallet service).
• Client cryptocurrency storage services (crypto storage service).
• Make a cryptocurrency transfer (crypto transfer service).
• Full-featured cryptocurrency exchange.
• Issue Visa/MasterCard debit cards that can be used to transfer and withdraw money.

Who is the regulatory authority regulating a Cryptocurrency business in Czech Republic? 

• In the Czech, the cryptocurrency business is mainly regulated and monitored by the Czech National Bank. Hence, if you want to establish a cryptocurrency exchange business in the Czech Republic, you will need to get a cryptocurrency license from the country’s financial watchdog (CNB). The license will grant you the authorization to run your cryptocurrency business in compliance with the laws and regulations of the jurisdiction. Without a valid Czech crypto license, you may be fined or even shut down by the authorities. 
• In addition to CNB, all financial market participants are supervised by the Financial Analytical Office (FAU) for AML/CFT purposes. The authority closely cooperates with the Czech National Bank (CNB) which is responsible for the general supervision of the financial market in the Czech Republic. Other national regulatory authorities are the Czech Inspection Authority and the Ministry of Finance.

What is the assistance granted by the Czech government for the Cryptocurrency business and applying for a Czech Crypto License? 

• Despite the government’s lax stance on the cryptocurrency industry, developing and new crypto businesses in the Czech Republic are given the chance to apply for funding from connected and non-governmental projects. Startup incubators and accelerators provide assistance with the development, promotion, and sale of cryptographic products and services. 
• To begin with, all Czech cryptographic businesses are eligible to use the FinTech CNB contact point so long as they can demonstrate how their good or service satisfies the criteria for financial innovation. This point of contact functions as a better communication channel and is made to enhance the efficiency of players in the innovative financial market and provide guidance on securing relevant authorization.  Filling up a contact form at the CNB website will get qualified businesses’ regulatory advice. However, as this service is not meant to take the place of qualified legal counsel, we suggest you get complete consultation from our team of professionals instead. When it comes to funding and other important business aspects, you can additionally benefit from the following initiatives:
• Government organization CzechInvest offers the seven-month CzechStarter incubator program, where companies can get funding, access to seminars, and professional guidance.
• The Blockchain Connect Association/Czech Alliance was established to encourage the adoption of blockchain technology throughout the nation, expedite growth, and get rid of fraud and corruption. 
• The Cryptoanarchy Institute aims to advance a decentralized economy that permits unrestricted information dissemination and the widespread adoption of such cryptocurrency-based goods and services.

What are the documentation and regulatory requirements for obtaining a Czech Crypto License? 

• In order to obtain any of the above-mentioned Czech crypto licenses, your entity needs to follow the standard authorization procedure and comply with the minimum regulatory requirements as outlined by the regulating body. 
• Tetra Consultants’ team of experts has been specializing in supporting cryptocurrency projects for more than a decade. Over time our team has gained extensive experience and vast knowledge in the field of FinTech and blockchain technologies, AML/CFT, as well as the legal regulation of financial and investment activities. Given the knowledge and experience, our team can accurately guide you on the requirements to be adhered to in order to set up a cryptocurrency business and obtain a cryptocurrency license in the Czech. In this section, our team has summarized the relevant requirements to be fulfilled for the same. 

Requirements with respect to a company 

• Register a Czech entity with a unique company name. 

• Obtain a registered legal address with a minimum one-year term. 

• Prepare and notarize the memorandum of association. 

• Open a corporate bank account with a Czech financial institution. 

• Transfer the authorized minimum capital, which depends on the basis of the class of license that the company is applying for. 

• Obtain any other relevant trading license at the Czech Trade Registry. 

• Draft a comprehensive business plan reflecting business continuity, operational model, and financial projections. 

Governance and local personnel requirements 

• Appointment of at least one resident or non-resident director who is fit and proper (qualified, with no criminal record). 

• Directors can be individuals or corporate entities; foreign individuals do not require visas but must have full legal capacity under Czech trade licensing law. 

• All directors are required to have extensive knowledge and experience in management roles, financial, and crypto areas.  

• The company must have at least 1 AML specialist that is licensed across the EU. It is mandatory to have a physical office in Czech Republic. 

• Recruitment of at least two local employees in the Czech Republic, one of whom can serve as the AML officer. 

• Mandatory appointment of a Chief Compliance Officer (CCO) and a Money Laundering Reporting Officer (MLRO) responsible for AML/CFT compliance and liaising with authorities. 

• At least one EU tax-resident director must be appointed to ensure transparency and strong regulatory oversight. 

AML/CFT and data protection requirements 

• Develop and implement internal AML/CFT policies covering client identification, risk assessment, and suspicious activity reporting. 

• Appoint a trained AML/CFT officer (MLRO) aligned with the company’s operating model and reporting framework. 

• Deploy modular AML/KYC solutions and automated transaction monitoring systems to meet EU anti-financial crime standards. 

• Establish GDPR-compliant data protection procedures for secure data exchange with authorities. 

• Ensure segregation of client assets, use of qualified custodians, and obtain insurance against theft or loss. 

Operational and risk management requirements 

• Prepare a white paper with legal and technical disclosures (mandatory for token issuers). 

• Develop an operational sustainability and risk management program, including marketing strategy, territorial coverage, and outsourcing policies. 

• Establish policies ensuring security of client funds and compliance with EU financial safety regulations. 

• Regular internal audits with compulsory reporting to the Czech National Bank to ensure compliance and mitigate risks. 

• Use trusted EU-based financial institutions for custody and settlement services to strengthen investor trust. 

Reporting and financial requirements 

• Adherence to AML/KYC procedures, suspicious activity reporting, and cooperation with Czech regulators. 

• Maintain accurate financial records in line with International Financial Reporting Standards (IFRS). 

• Annual filings must include a balance sheet, revenue and expense statement, cash flow summary, and changes in equity, along with tax returns. 

• Entities exceeding €3,000,000 turnover, €1,500,000 in assets, or 50 employees must undergo an independent financial audit. 

What are the documents required to obtain a Czech Crypto License?

• When applying for the Czech crypto license you are required to provide the following information together with the license application:
• Corporate documents such as a notarized Memorandum and Articles of incorporation, Certificate of incorporation, and detailed information about the applicant entity. 
• Identity documents including copies of notarized passports, utility bills (of last three months), and income statements of founders, directors, and shareholders. 
• Certificates confirming no criminal record, unpaid taxes, and debts of founders, directors, and shareholders. 
• Business plan incorporating strategy and operational policies and procedures of the applicant entity. 
• All of the given information will probably be forwarded to the appropriate national supervisory authorities so they may assess the applicant’s eligibility to engage in the legally permitted cryptographic activity. Qualified applicants are given a license that may only be used for operations that the Trade Licensing Authority has authorized. If the license is conditional, the licensee will not be permitted to begin cryptographic operations until the requirements set forth by the authority are met.
• By law, all licensees must report to any regulatory agency upon additional inquiry and request. If the entity fails to do so, its conditional licenses may be suspended for engaging in fraudulent activities. It should be reminded that starting a permitted cryptographic activity without first acquiring a license is prohibited. Without a license, a cryptographic business is deemed fraudulent, subject to a fine of up to 500,000 CZK (about 20,204 EUR), and required to stop operations.

What is the process of obtaining a Czech Crypto License? 

• Prague, the capital of Czechia, is currently one of the cities with the greatest concentration of cryptocurrency ATMs (evaluated in BTC), making it one of the most desirable locations for crypto investors to launch their ventures. People who want to start a business selling digital goods and related services must adhere to the requirements prescribed for this type of commercial business. 
• Tetra Consultants’ team of licensing experts will thoroughly guide you on how to apply for a crypto license in the Czech Republic, what these requirements are, and what they entail. In the section below, our team has outlined the most prevalent steps that take place during the course of applying for a Czech crypto license.