Crypto license in Czech Republic
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Setting up a crypto business in the Czech Republic is direct and efficient. You can register a company, obtain a crypto license, and start offering exchange or wallet services in just a few weeks. There are no strict local staffing requirements and only minimal paperwork is needed for management. The legal framework covers all main cryptocurrency activities and is aligned with EU regulations. Legarithm is ready to guide you through every step, from registration to ongoing compliance.
Overview of virtual asset service regulation
The Czech Republic is recognized as an efficient and business-friendly jurisdiction for companies seeking to conduct crypto activities. Local laws currently regulate crypto as commodities, not as legal tender. While cryptocurrencies are not considered official money, businesses can use and exchange them freely, following some clear compliance requirements.
Czech law treats most crypto activities as trades, requiring a simple registration rather than a dedicated financial license. This makes the process of establishing a crypto company in the Czech Republic faster and more accessible than in many other European countries.
Types of crypto-related activities covered
The Czech legal framework covers a broad range of crypto services. Unlike some jurisdictions, there are no separate approvals for each type of crypto activity. After registering as a provider of services related to virtual assets, a company may legally perform actions such as:
- Buying and selling virtual assets (crypto-to-fiat and crypto-to-crypto exchanges)
- Storing or managing virtual assets (custodian wallet services)
- Facilitating the purchase, sale or transfer of crypto
- Operating wallets or generating private keys for clients
Any company engaging in these services commercially must register as a Virtual Asset Service Provider (VASP). However, if your business only accepts crypto as payment for goods or services, or conducts mining operations, separate registration is not required.
If your activities involve securities or certain financial instruments, further licensing may be necessary. Our legal team can assist in clarifying if your planned project falls under MiFID II or similar regulations.
Advantages of Czech Republic for crypto businesses
Registration process and requirements
Company incorporation
Select a business name, register your legal entity, and obtain a clean criminal record certificate for key personnel.
Trade licensing registration
Apply for the activity of “services related to a virtual asset” at the Trade Licensing Office.
AML compliance documentation
Prepare and submit internal policies on KYC (Know Your Customer), transaction monitoring, and reporting of suspicious activities, in line with Czech AML law.
Appoint responsible persons
Designate an AML officer (who can be non-resident) and provide their details with supporting documentation.
Fees
Pay state fees and any administrative costs.
Operating a Czech crypto company involves certain legal obligations:
- Customer due diligence: Perform KYC before a client’s transactions exceed EUR 1,000; enhanced due diligence is needed from EUR 15,000 or if the client is a politically exposed person (PEP).
- Transaction monitoring: Keep records and watch for suspicious behaviors.
- Reporting obligations: Notify the Financial Analytical Office (FAU) of any suspicious activity within 5 calendar days of detection.
- Privacy and data protection: Observe GDPR compliance on customer data.
Failure to register or to meet AML standards can result in significant fines.
Czech tax rules treat profits from cryptocurrency activities as standard business income. Companies are generally taxed at a flat rate of 19%; the tax year is usually the calendar year but can be set differently with tax authorities’ agreement.
For individual traders, gains are taxed at 15%. VAT does not apply to crypto exchange services, according to EU court rulings.
From December 2024, the EU’s MiCA (Markets in Crypto-Assets Regulation) will set new pan-European rules for crypto assets and service providers. This will bring in:
- Obligations for issuers to produce a white paper and follow conduct and disclosure rules
- Stricter licensing for providers of certain tokens (like EMTs and ARTs)
- Exclusions for NFTs, instruments covered by MiFID II, and some utility tokens
Czech law has already adapted to reflect these new requirements, with the Czech National Bank (CNB) playing a key supervisory role. Many existing crypto businesses may need to adjust their processes or seek further authorization if they issue or trade regulated digital assets.
Some market participants prefer to purchase a ready-made Czech company with an existing crypto license. This can accelerate market entry, as the entity has already completed compliance checks, drafted AML policies, and obtained licensing.
Typical conditions include:
- No need for a local office or staff
- AML officers may be foreign nationals
- Full documentation package provided
- Cost for a fully registered company generally starts from EUR 5,000
If you are considering launching a crypto business, it is recommended to review these core acts:
- The Trade Licensing Act (covers the basic registration requirements)
- The Czech AML Act (details compliance measures for VASPs)
- The Banking Act and Payment Systems Act (clarify scope for payment, custody, and EMI services)
- The Act on Investment Companies and Investment Funds (for projects with investment or asset management aspects)
For step-by-step guidance or specific questions about compliance and structuring, contact our legal team at Legarithm. We can advise on which licenses your business may need and how to achieve full operational readiness in the Czech Republic.
Frequently Asked Questions about Crypto License in Czech Republic
Still have a questions?
What is a crypto license in the Czech Republic?
A crypto license in the Czech Republic is not a separate financial license. Instead, it is a business registration under “services related to a virtual asset” with the Czech Trade Licensing Office. It allows companies to run crypto exchanges, wallet services, and other virtual currency services as defined by Czech law.
Which activities are allowed under the Czech crypto registration?
The license covers exchanging fiat to crypto and crypto to crypto, providing custodial wallet services, transferring virtual currencies, and other services involving virtual assets. It does not cover traditional banking, payment processing, or investment services without additional licensing.
What are the main requirements to get a crypto license in the Czech Republic?
To register, you need to set up a company (typically a limited liability company, s.r.o.), submit a clean criminal record certificate for principals, and prepare AML/CFT policies. An AML officer must be appointed, but they do not have to be a Czech resident. There is no minimum capital requirement beyond 1 CZK.
How long does it take to register a crypto company and get the license?
Company registration usually takes about one week. The licensing process with the Trade Licensing Office takes another one to two weeks. Most companies become fully operational in two to three weeks from the start of the process.
Are there ongoing compliance and reporting requirements for licensed crypto companies?
Yes. All registered crypto businesses must follow anti-money laundering (AML) and know-your-customer (KYC) rules. This includes client identity verification before €1,000 in transactions, enhanced due diligence for large or high-risk clients, reporting suspicious transactions, and updating internal AML policies.
Can foreign nationals own and manage a Czech crypto company?
Yes. There are no local substance requirements. Owners, directors, and AML officers can be foreign nationals, and management does not need to be physically located in the Czech Republic.
What are the taxation rules for crypto companies in the Czech Republic?
The corporate income tax is 19%. Individuals pay a 15% tax on personal crypto trading. Crypto exchange services are exempt from VAT. Businesses must still report profits and meet regular accounting standards.
What is the penalty for operating a crypto business without registration?
Running a crypto business without the proper registration can result in a fine of up to 500,000 CZK (around $20,000). Compliance with AML rules is also strictly enforced.
How does new EU regulation (MiCA) impact crypto companies in the Czech Republic?
From December 30, 2024, the MiCA regulation brings extra obligations, especially for issuers and larger platforms. These include EU registration, detailed white papers, and professional standards. The Czech National Bank gains additional oversight from February 2025.
Does a Czech crypto license allow serving clients in other countries?
Yes. Czech-licensed crypto companies can serve clients across the EU. For non-EU clients, identity checks and compliance are needed, and cross-border services must still follow Czech and EU legal standards.
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