Over the past decade, the Czech Republic has developed a well-advanced and sophisticated financial system complemented by transparent legislative frameworks. The robust crypto regulation in the Czech Republic fosters an environment conducive to hold reliable and trustworthy business operations, earning the confidence of clients.
The Czech Republic is one of the most attractive jurisdictions in the EU for cryptocurrency business, as only the Czech National Bank supervises the financial market, including cryptocurrencies.
Currently, there’s no license for crypto-specific associated activity in the Czech Republic.

However, to provide services related to crypto-activity (is considered as licensed trade), it is necessary to follow the general authorization procedure stipulated by the Trade Licensing Register administered by the Czech Ministry Of Industry And Trade. Crypto companies in the country are considered obliged entities and fall under the supervision of the Financial Analytical Office (FAÚ), which enforces compliance with anti-money laundering (AML) regulations.

According to the Czech Republic laws, after complying with all the requirements, the allowed activities of the exchange permissions are:

• exchange of cryptocurrency against a fiat currency (crypto vs fiat exchange);
• exchange of fiat currency against a cryptocurrency (fiat vs crypto exchange);
• exchange of cryptocurrency against a cryptocurrency (crypto vs crypto exchange);
• provision of a crypto wallet service (custodian crypto wallet service);
• client cryptocurrency storage services (crypto storage service);
• make a cryptocurrency transfer (crypto transfer service);

Key advantages:

• One of the fastest licenses in the EU (5-8 weeks), 3 weeks for company incorporation, and 2 weeks for registering exchange and custody activities within the Trade Licensing Register.
• There are no stringent qualification prerequisites for senior management roles. Additionally, board members and the KYC officer are not subjected to extensive due diligence procedures, except for the obligation to furnish a certificate affirming their clean criminal record.
• There are no stipulated share capital prerequisites. Just a single Czech Krone is adequate, with no necessity to establish a corporate account.
• This jurisdiction offers one of the most appealing tax environments in the EU, as evidenced by its high ranking of 5 out of 37 EEA member states on the tax competitiveness index.
• EU customers can be onboarded seamlessly, without constraints. For non-EU residents, in addition to standard KYC measures, EIDAS verification methods are employed to ensure compliance.

Get in touch with us to learn more about becoming a VASP in Czech Republic