Czech Republic Сrypto License
If you are looking to launch a new crypto company in a trusted and future-oriented location, the Czech Republic is the solution you’ve been searching for. This jurisdiction stands out as one of the most attractive destinations for fintech businesses in the European Union and beyond. To operate your business there and engage in cryptocurrency commerce lawfully, you need to get a CASP crypto license under the Markets in Crypto-Assets Regulation, also called MiCA or MiCAR. Navigating the complexities of meeting the high standards of compliance and legal regulation in this jurisdiction is exactly what we’re here for. We’ll assist you in obtaining the crypto licensing for your company in the Czech Republic and ensuring full compliance with both local and EU-level requirements.
Contents
- Service Packages for Registration of a Czech Crypto License
- Requirements for a Crypto License in the Czech Republic
- Procedure for Obtaining a Crypto License in the Czech Republic
- Crypto License Scope Under MiCA in the Czech Republic
- Advantages of the Czech Republic Crypto License
- Overview of Crypto Regulations in the Czech Republic Under MiCA
- Taxation of Crypto Companies and Crypto Transactions in the Czech Republic
- Common Reasons for Czech Republic Crypto License Rejection and How to Guarantee Yours Is Approved
Service Packages for Registration of a Czech Crypto License
Handling all the specifics and requirements for obtaining your crypto license in the Czech Republic on your own is indeed challenging. The good news is – you do not have to navigate all of that alone. Our team of legal experts offers service packages that include consulting, documentation preparation, company registration, application, and the ongoing post-license support.
At Fintech Harbor Consulting, we will develop Anti-Money Laundering (AML) and Know Your Customer (KYC) policies for your venture, assist you in opening a corporate bank account, monitor compliance, and provide legal advice to ensure your business aligns with the Czech law requirements. With our thorough understanding of the constantly evolving landscape of crypto regulation, we will guide you through the compliance policies of the Financial Analytical Office (FAU), which supervises AML compliance, and the Czech National Bank (CNB), which is the competent authority responsible for CASP licensing under MiCA in the Czech Republic. From the initial consultation and compliance evaluation to the approval of your application and, eventually, obtaining your CASP license, we’ve got you covered.
Requirements for a Crypto License in the Czech Republic
Obtaining the proper CASP licensing in Czech Republic is a complicated process that takes both time and precise attention to every detail of your application and documentation. To successfully apply for the crypto trading license and secure your authorisation in this jurisdiction’s crypto market, make sure to meet the following requirements:
- Company registration in the jurisdiction with a physical office space. Virtual offices are not accepted for this type of licensing.
- Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) compliance.
- Appointment of a Money Laundering Reporting Officer (MLRO) who is based in the EU.
- A detailed business continuity plan.
- Internal control policy to ensure full compliance with MiCA standards.
- Conflict of interest prevention policy to promote transparent and fair decision-making.
- Custodial services storage and administration policy for CASP classes 2 and 3.
- Client complaints handling policy.
- ICT security policy to safeguard IT systems and ensure the integrity of customer data and crypto transactions.
- Preliminary enterprise-wide risk assessment to develop strategies for enhancing the business security and maintaining regulatory compliance.
- The minimum share capital varies depending on the category of your company’s services:
Crypto-asset service providers | Type of crypto-asset services | Minimum share capital requirements |
Class 1 |
| 50,000 EUR |
Class 2 | any crypto-asset services under class 1 and:
| 125,000 EUR |
Class 3 | any crypto-asset services under class 1-2 and operation of a trading platform for crypto-assets. | 150,000 EUR |
Although the list of requirements for obtaining your licensing under MiCA may appear lengthy and complex, our experienced team of lawyers is here to assist you through the entire compliance journey to guarantee your company’s successful operation in the Czech Republic. From providing the initial consultation and evaluating your venture’s compliance needs to securing your CASP license, you can rely on our expertise to handle your company’s regulatory needs with ease and confidence.
Expenses and Charges Associated with the Crypto License in Czech Republic
When it comes to planning your budget for securing a crypto license in the Czech Republic, make sure to contact our expert team of lawyers, who will guide you through each part of the total costs associated with your application and documents.
Below is the breakdown of the first-year fees related to applying for your CASP license in this jurisdiction:
| Included services & features | Cost |
|---|---|
| Initial consultation and compliance assessment | €4,000 |
| CASP application and compliance Documentation | €21,000 |
| Total: | €25,000 |
Procedure for Obtaining a Crypto License in the Czech Republic
Obtaining your crypto license in the Czech Republic begins with an initial consultation to understand your business and assess the MiCA compliance requirements for your business. This step takes from 2 weeks to 2 months, depending on the complexities of your situation. It is followed by thorough document preparation (ID, address proof, business plan, AML and KYC policies, and financial statements).
Next, you’ll have to register your company, open a corporate bank account in open a corporate bank account with a Czech financial institution, and deposit the required share capital. Then, after submitting the application to the authorities and addressing any queries, a Money Laundering Reporting Officer (MLRO) is appointed, and compliance with AML and CFT regulations is ensured. This stage typically takes from 1 to 3 months, depending on your company structure and compliance requirements for your venture.
Keep in mind that the process of securing your MiCA license in the Czech Republic does not end once you get your license. Rather, it is crucial to maintain compliance of your company and stay updated on any regulatory changes applying to ventures that handle cryptocurrencies. Ongoing obligations under MiCA include annual reporting, maintaining internal controls, and notifying the CNB of significant changes in operations.
To help you keep your license, we will offer ongoing post-approval support and guide you through every step of your licensing journey in the years to come. The entire procedure of getting your CASP license, from the initial consultation to the final application, generally takes under 5 months. Read further to get a better understanding of each step of obtaining your license in the Czech Republic and its estimated timeline.
Gathering Documents From the Client to Start the Process
Preparing the complete package of documents is a key element of securing the approval of your CASP licensing application. The estimated timeframe for gathering all the necessary documentation usually varies between 1 and 3 months. Here is the list of the required policies and documents you’ll need to prepare before submitting your application:
- Corporate and legal documents:
- Legal and commercial name, including any other commercial names used
- Legal entity identifier (company number/registration number)
- Physical address, website, email, and phone number
- Legal form of the entity
- Articles of association/other company charter
- Programme of operations describing types of crypto-asset services provided and where and how services will be marketed.
- Governance & Ownership
- Description of governance arrangements
- Identity of all members of the management body
- Proof that members of the management body are of good repute and have the required knowledge and experience
- Identity of shareholders/members with qualifying holdings and the amounts held
- Proof that such shareholders are of good repute
- For advisory or portfolio management services, proof of knowledge and expertise of individuals providing the service
- If exchanging crypto-assets, commercial policy and pricing methodology
- If executing orders on behalf of clients, the execution policy.
- Compliance Policies
- Proof of compliance with prudential capital requirements
- Description of internal control mechanisms
- AML and CFT risk policies and procedures
- Business continuity plan
- Complaint-handling procedures.
- Technical & Security Framework
- Technical documentation of ICT systems
- Non-technical description of ICT security arrangements
- If operating a trading platform, operating rules and market abuse detection mechanisms
- If providing transfer services, description of how such services will be delivered.
- Client Asset Protection
- Procedure for segregation of client crypto-assets and funds
- If providing custody, custody and administration policy.
Registration of a Limited Liability Company (S.R.O.)
Here is a comprehensive outline of establishing a cryptocurrency Limited Liability Company (S.R.O.) in the Czech Republic:
- Verify your company’s name: Choose a unique name and verify its availability with the Czech Business Register.
- Obtain a criminal record certificate: All key company personnel must provide a criminal record certificate from the relevant authorities.
- Secure a legal address: Establish a legal address in the Czech Republic for official correspondence.
- Open a corporate bank account: Set up a corporate bank account in the Czech Republic to deposit the share capital.
- Deposit share capital: Deposit the required minimum share capital into the corporate bank account. The minimum depends on the type of CASP services to be provided under Article 67 of MiCA (50,000–150,000 EUR). A bank confirmation of deposit is required.
- Acquire a trade license: Apply for a Trade License (Živnostenský list) from the Czech Trade Licensing Office under the business activity code 81 (“Provision of services related to virtual assets”).
- Prepare and notarize the Memorandum of Association: Draft and notarize the Memorandum of Association (MoA), outlining the company’s structure and objectives.
- Pay the state registration fee: Proceed with the necessary payment to register your company with the Czech Commercial Register.
- Register with the Czech National Bank (CNB): After incorporation and obtaining the trade license, submit your CASP license application to the CNB in accordance with Article 62 of MiCA. This includes your business plan, AML/CFT policies, ICT security framework, and proof of capital.
- Comply with AML/CFT regulations: Ensure compliance with Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) regulations by conducting due diligence on key personnel. The CNB will assess these measures as part of your CASP licensing.
Corporate Account Opening and Accounting
Opening a corporate bank account is a mandatory step in registering your company and getting CASP license for providing your crypto services in the Czech Republic. We offer full support with opening the bank account for your business and navigating the expenses associated with it. Keep in mind that the cost of bookkeeping for a cryptocurrency company varies depending on the number of documents to be processed and the number of employees of the Czech company.
An essential element in your business accounting is recording the amount of fiat money received as well as the amount of cryptocurrency assets acquired during the month. Besides, make sure to keep a record of all cryptocurrency assets of your company in Czech crowns on a monthly basis.
Crypto License Scope Under MiCA in the Czech Republic
Until January 1, 2025, the activities of Czech cryptocurrency companies were regulated by the Virtual Asset Service Provider (VASP) authorization standards. However, since then, all businesses that provide services related to crypto assets are required to apply for and hold the pan-European Crypto Asset Service Provider (CASP) license under MiCA regulation.
With proper CASP licensing, you will be able to provide a wide range of services, including placing of crypto assets, execution of client crypto orders, crypto-asset consulting and portfolio management, providing custody and administration of crypto assets on behalf of clients, and exchange of crypto assets against funds and other crypto assets.
Once you secure your crypto license in the Czech Republic that aligns with MiCA regulatory framework, you can upgrade your venture’s activities in the following areas:
- Crypto Exchange (Trading Platforms)
- Crypto Wallet Services
- Initial Coin Offerings (ICOs) and Token Issuance Platforms
- Crypto Custodianship (Institutional Services)
- Crypto Payment Services
- Peer-to-Peer (P2P) Platforms
Advantages of the Czech Republic Crypto License
If you are wondering where to base your crypto operations within the EU, make sure to take a closer look at the Czech Republic. This jurisdiction supplies a compelling combination of regulatory transparency and clarity, business-friendly policies, and an attractive cost range. Here are just a few of the key benefits of securing your CASP license here:
- EU market access: Operate seamlessly across the entire European Union and benefit from passporting rights granted by the crypto license under MiCA.
- Clarity in regulation: Maintain your company’s compliance with precise and well-defined regulatory standards under MiCA and enhance your venture’s sustainable growth.
- Business-friendly environment: Take advantage of competitive corporate taxes and streamlined administrative procedures.
- Enhanced credibility: Strengthen your business’s reputation by operating within a well-regulated European jurisdiction known for its transparent legal framework.
- Cost efficiency: Benefit from lower setup and operational costs compared to other crypto-friendly jurisdictions in the region.
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Overview of Crypto Regulation in the Czech Republic
Until recently, crypto businesses in the Czech Republic were regulated by the EU’s 4th and 5th Anti-Money Laundering Directives (4AMLD and 5AMLD). This meant that the primary requirements for the holders of a legal crypto license in the Czech Republic were compliance with KYC policies.
However, with the full adoption of the MiCA legislation within the EU, the regulatory ecosystem has significantly evolved. Namely, as of 2025, this unified legal framework across the region impacts the Czech Republic, specifically targeting the Virtual Asset Service Providers (VASPs). Thus, all crypto companies in this jurisdiction are now required to align with MiCA’s more stringent compliance requirements and possess a CASP authorization to continue providing their crypto services.
Given the scope of the new regulatory system and possible complexities of transitioning to CASPs, we recommend consulting experienced legal professionals. Our expert lawyers will thoroughly assist you to guarantee your Czech Republic MiCA compliance and ensure full legal operations without regulatory setbacks.
Taxation of Crypto Companies and Crypto Transactions In The Czech Republic
Cryptocurrency transactions in the Czech Republic benefit from favorable tax treatment. Namely, they are exempt from value-added tax (VAT). This policy is based on a ruling by the European Court of Justice (Case C-264/14), clarifying under Article 135(1) – 1 of the NSO Directive that the exchange of virtual currency for conventional currency and vice versa, as well as currency exchange services (fiat) are not subject to VAT.
This tax exemption is another reasons why the Czech Republic’s crypto license is considered one of the most cost-friendly options in the region.
Nevertheless, keep in mind that the income derived from the following crypto-related activities remains taxable:
- Profits from price changes in the process of purchasing and selling or exchanging virtual currencies.
- Cryptocurrency mining.
- Payments received in virtual currencies for services rendered.
Make sure to take this fact into account while calculating the crypto license Czech Republic cost and assessing other upcoming expenses related to your activities.
Income in virtual currencies is taxed similarly to traditional currencies, with values converted to Czech crowns (CZK) based on the exchange rate at the transaction or income date.
Another advantage of the Czech Republic’s taxation system is the exemption of cryptocurrency transactions (purchases/sales) from VAT. Please note: if the company provides other services, VAT may still apply.
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Common Reasons for Czech Republic Crypto License Rejection and How to Guarantee Yours Is Approved
What does it take to secure your crypto license in the Czech Republic? Rather than just submitting the right package of documents for revision, the success of your application involves a range of several key components, from meaningful local substance and clean financial statements to full compliance with the latest MiCA requirements and technical compliance.
And yet, a single misstep on your licensing journey can lead to your application getting rejected or even a costly, indefinite suspension of the entire licensing procedure. With this in mind, what are the common pitfalls when it comes to preparing and submitting your critical application? And, most importantly, how to avoid those mistakes so that your Czech crypto license gets approved already at the first try?
1. Reliance on Generic Document Templates
The first and most frequent cause for instant application rejection is the use of standardized AML and ICT guidelines. For instance, when applying for a crypto license in the Czech Republic, utilizing a custody policy if your company only provides advisory services is certainly not the best idea. The same logic applies to developing security protocols, business continuity plans, and other operational resilience measures, as the Czech National Bank (CNB) expects these documents to be strictly tailored to your specific business model.
The CNB’s primary expectation is to confirm that your documents, particularly risk assessments,clearly reflect the needs, vulnerabilities, and key goals of your unique project vision. To prepare the most accurate and descriptive documentation for your Czech Republic VASP license transition or new CASP authorization, make sure to contact qualified legal experts who will help you draft the business model, risk management plan, and more.
2. Lack of Proper Local Substance
While the documentation is undoubtedly important for your successful license approval, so is the confirmation of your local presence in your target jurisdiction. As you already know, the latest regulatory standards for a crypto license in the Czech Republic require company registration with a physical office space in the country and the appointment of a Money Laundering Reporting Officer (MLRO) who is based in the European Union.
These requirements imply that merely proposing an incompetent director who lacks crypto-specific expertise or indicating a virtual office in your application is not going to work, especially considering the current global pathway towards stricter compliance criteria under MiCA.
What, then, is the right way of establishing your presence in your license’s home jurisdiction? Here are the key principles of demonstrating your local substance to secure a VASP license Czech Republic:
- Register your company at a physical office address where the core activities take place, including compliance monitoring and risk management;
- Appoint at least one resident director or a senior manager with an active, executive role in your company;
- Appoint a local MLRO with a deep understanding of the specific AML risks and responsible for filing reports to the analytical office;
- The Class 2 and 3 Czech licenses require a designated Chief Information Security Officer (CISO) responsible for Digital Operational Resilience Act (DORA) compliance and cybersecurity;
- Provide detailed CVs, diplomas, and professional references of your management personnel to confirm their specific education and experienced qualifications.
3. Insufficient Source of Wealth
What about the proof of funds? Turns out the failure to provide a clear, sufficient proof of the minimum capital available in a bank account at the application stage is far more common than you might think. When pursuing a crypto license in the Czech Republic, the most frequent hurdle is not necessarily a lack of funds, but rather the absence of a clear, audited trail proving the legitimate origin of that share capital.
A common mistake that the applicants tend to make when preparing their share capital for revision is borrowing the funds from a third party or a parent company just to demonstrate the sufficient amount in the account at the moment of document submission for review. The Czech crypto license requires the money to belong to the UBO or your company permanently. If the CNB suspects the funds are a temporary loan intended to disappear right after the license issuance, they will reject the application due to the lack of financial transparency.
While you have the sufficient amount according to your activities class, it’s crucial to withstand the due diligence on Ultimate Beneficial Owners (UBOs). To secure a crypto license in Czech, the regulator typically requests applicants to submit a verifiable history of those holdings, including any regulatory fines, bankruptcies, and past investigations in other jurisdictions.
For instance, if your license capital originates from crypto profit, the CNB will require a complete documented trail from the moment you bought the abovementioned assets until they were converted to fiat. In this case, to qualify for a VASP license Czech Republic, you’ll have to provide the original purchase history, exchange trading records, and wallet reports if the assets were held in private wallets.
4. Technical Non-Compliance
Lastly, a widely occurring error when it comes to polishing your license application is the failure to comply with the DORA. For various reasons, applicants for the crypto license Czech Republic tend to treat IT security as an afterthought rather than a core priority for safe, consistent operations. Namely, your license request can get rejected if your ICT risk management framework is defined clearly enough.
How to prevent this error? The solution lies in completing thorough penetration testing and developing a robust business continuity plan for internal emergency situations like system failure or external threats like cyberattacks. Namely, here is what you can do to confirm your bespoke security framework for a VASP license Czech Republic:
- Identify your critical assets, such as cold/hot wallets and customer database;
- Clearly document the methods you’ll use to identify threats and further build protective policies against them;
- Make sure all your systems undergo regular vulnerability assessments at least once a year;
- Maintain a complete inventory of all third-party ICT service providers;
- Build a reliable business continuity plan to confirm that your systems remain shielded from server failures. Keep in mind that the CNB can request logs of your last disaster recovery drill to confirm that your recovery plan actually works.
FAQ
How can Fintech Harbor lawyers help me with obtaining a crypto license in the Czech Republic?
Our Fintech Harbor lawyers bring profound expertise when it comes to securing a Czech Republic crypto license for your company. Our experienced team offers end-to-end support and will ensure a smooth and efficient licensing process. From the initial compliance assessment and consultation to the final approval of your application, we will manage each step of your journey with precision and thorough understanding of the local legislation in your selected jurisdiction. With our proven experience, you can trust us to help you obtain your cryptocurrency license quickly and with minimal hassle.
What is the role of Fintech Harbor lawyers in the process of obtaining a crypto license in the Czech Republic?
Our comprehensive understanding of local laws in the Czech Republic under the new MiCA regulation allows us to manage every step of the process, from first consultation to final approval. At the first stage of your CASP licensing journey, we will carefully review your company’s structure and evaluate its current compliance. Then, our expert team will guide you through the documentation process to make sure that you have the complete set of the required policies and documents for application. Once you get your license approved, we will offer you full support in maintaining MiCA compliance for your business for the years to come. With our expertise, you can be certain that getting your cryptocurrency license will be quick and easy.
What is the cost of obtaining a crypto license in the Czech Republic?
The cost of obtaining a crypto license in the Czech Republic depends on several factors. These include the range of services your company intends to provide under MiCA, the application fee, current operational expenses, the volume of necessary legal services, and more. To calculate the exact amount of expenses in your unique case, make sure to contact one of our Fintech Harbor legal professionals.
How is the procedure for crypto license in the Czech Republic going?
Obtaining a crypto license in the Czech Republic involves several important steps. First comes the initial consultation and your company’s compliance assessment. Then, most importantly, you’ll need to prepare the required documents, register the company, and open a corporate bank account. Once all the necessary documentation is prepared, you can submit an application for licensing to the Czech National Bank (CNB), which is the designated competent authority under MiCA and await your license approval.
Once you obtain your license, make sure to keep your business compliant with the latest MiCA regulatory requirements. With our legal expertise, your process of getting your CASP licensing in the Czech Republic is guaranteed to be smooth and hassle-free.
How is cryptocurrency regulated in the Czech Republic?
The Financial Analytical Office (FAU) supervises AML/CFT compliance, but it is not the licensing authority for crypto businesses. The Czech National Bank (CNB) is the designated competent authority responsible for CASP authorisation under MiCA.
As for the legislation, since January 1, 2025, the activities of VASPs in the Czech Republic are regulated by the Regulation on Markets in Crypto-assets (MiCA). Under MiCA’s oversight, all current VASPs are required to obtain the CASP license in order to continue offering their crypto services lawfully.
