Cryptolicense in the Czech Republic

27th of Сентября, 2023

The Czech Republic is one of the most attractive markets for working with digital assets. In order to carry out activities related to cryptoassets in the country, it is necessary to strictly comply with the requirements of national legislation, in particular, to obtain a special license.

Cryptolicense is an official authorization that confirms the legality and legitimacy of carrying out activities in the field of cryptocurrencies and blockchain.

Who will benefit from the service?

With a license, an entrepreneur has the right to legally carry out activities related to cryptocurrencies. In turn, the use of blockchain technologies and cryptocurrencies indicates the advancement and development of the business, which in the long run can increase the overall competitiveness in the market.

The service of obtaining a crypto-license in the Czech Republic for foreigners will be useful for entrepreneurs with international business who want to quickly, affordably and without unnecessary bureaucracy to obtain the appropriate authorization.

It is prohibited to conduct business related to digital assets without obtaining the appropriate license – this is a violation for which legal liability is provided.

When independently obtaining a license, entrepreneurs, as a rule, face the following difficulties and problems:

  • failure to understand the requirements and peculiarities of national legislation;
  • failure to comply with all conditions;
  • incorrect execution of necessary documents;
  • complicated legal procedures;
  • a large amount of confusing bureaucracy.

In order to guarantee a crypto license to conduct business with digital assets, please contact Intelligent Solution Group for assistance, our specialists have extensive experience in this matter. The cost of obtaining a crypto license in the Czech Republic is determined by a free initial consultation - depending on the tools and features your business requires.

The stages that our experts will perform together with you:

  • analyze the client's request, set goals, determine the desired result;
  • We select the optimal type of license based on the needs of the business;
  • help to collect and execute documents for registration of a foreign company. We carry out registration of the company abroad on a turnkey basis and are ready to help in solving any related issue;
  • we register with tax authorities, submit notifications about crypto activities to the state authorities; 
  • send a notice to the FAU regulator and prepare to go through all AML procedures;
  • applying for a cryptocurrency license to the authorized body;
  • select a bank or neo-bank to open an account and prepare all documents for this purpose;
  • we open a corporate account in a bank or payment system, help to pass KYC;
  • obtain a ready license;
  • if necessary, we provide related accounting support.

This list of actions is approximate and may vary depending on the circumstances and specifics of the situation.

For a free consultation, please contact us in any convenient way.

What does a cryptocurrency license in the Czech Republic provide?

A cryptolicense is a type of financial license, i.e. permission from the Czech regulatory authority to carry out operations for storing, exchanging or trading digital currencies and tokens.

What is cryptolicense called in Czech?

In Czech business circles, the definition "poskytování služeb spojených s virtuálním aktivem" is used to refer to the licensee. This term literally corresponds to the definition of "virtual asset service provider" (VASP) in the Western world, i.e. "virtual asset service provider license".

Where in the Czech Republic should I apply for a crypto license?

In this country there is a Registry of trading licenses (Živnostenský rejstřík). To obtain a license for cryptocurrency transactions, you need to submit a corresponding application to this state body.

What is the validity period of a license for operations with digital assets in the Czech Republic?

The license for activities with virtual assets (tokens, cryptocurrency) in the Czech Republic does not have a finite term. It is perpetual and is issued once by a legal entity.

What body acts as a regulator of cryptocurrencies in the Czech Republic?

Control and supervision of cryptocurrency firms in the Czech Republic is carried out by the Financial Analytical Unit or Financial Analytical Unit (FAU). It is the public authority responsible for AML/CFT compliance.

Are there any restrictions on the size of the authorized capital for Czech crypto companies?

The local legislation does not set any special norms for the size of the founding capital for crypto companies. It is possible to register a company by contributing only 1 crown to its capital.

What documentation do I need to collect to apply for a cryptocurrency license?

To apply for a cryptocurrency license, you need to collect or compile the following documents:

  • founding documents for the firm;
  • a certificate of no criminal record from each person managing or controlling the business (founders, directors and UBOs);
  • AML policy – a document describing all procedures within the firm that are followed according to the international AML/CFT rules.

Does a crypto firm need an economic presence (substance) in the Czech Republic?

Current Czech legislation does not oblige crypto firms registered in the Czech Republic to have a physical local office and employed employees from the Czech population.

Is a foreign person allowed to hold management positions in a crypto company?

Czech laws are loyal to foreign persons conducting activities with virtual currencies. Citizens of other countries are allowed to act as beneficiaries, managers and MLROs. In addition, the owner is not obliged to hire employees from among Czech residents.

What are the peculiarities of taxation of crypto companies in the Czech Republic?

Regardless of the type of commercial activity, every Czech company is subject to income tax. Its rate is 19%. Transactions with tokens and cryptocurrencies are equated to financial transactions, and they are not subject to value added tax.

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