How to Obtain a Czech Republic Crypto License
Compliant EU Crypto Market Access, Seamless and Swift
Unlock the potential of Europe’s expanding crypto market with a Czech Republic crypto license. Whether you’re eyeing crypto opportunities in Prague or the wider EU, CryptoLicence offers comprehensive support to help you obtain a license efficiently. We ensure a smooth process from start to finish, allowing you to focus on business growth.
Whether you’re starting from scratch or opting for a ready-made company with a pre-acquired Czech crypto license, we guarantee a fast and efficient application process—often completed in just a few weeks.
- Your External Compliance Team: We’ll help you meet the Czech authorities’ (TLR, CNB, FAÚ) requirements, craft a strong application, and manage the entire submission process.
- Comprehensive Support: We offer end-to-end support, including legal consultation, document preparation, AML/KYC policy development, external audit arrangements, and more.
- Direct Application Expertise: We recommend this simple, fast route. We can explore acquisition options if you require a pre-existing bank account.
Ready to launch your crypto business in the Czech Republic? Let’s partner up! Contact us today.
- Expand Your Reach: Offer a range of services, including crypto-to-fiat exchange and virtual wallets, to customers across Europe.
- Favourable Regulatory Environment: Enjoy a clear and efficient process with minimal bureaucratic hurdles.
- Cost-Effective Solution: 1 CZK minimum share capital. Compared to other European crypto licences, the Czech Republic offers a quicker and more affordable option.
- Innovation Hub: Join the thriving blockchain community in Prague, a global leader in crypto adoption.
- Build Credibility: Operate as a regulated entity to gain trust, attract customers, and secure the interest of investors.
- Valuable Asset: Your Czech VASP registration can increase your business value and open doors to new partnerships or funding opportunities.
- No Single “Crypto License”: The Czech Republic offers a business registration process with specialised permissions for different crypto activities.
- Regulation Overview: Cryptocurrencies are treated as commodities in the Czech Republic, subject to tax laws and AML/KYC regulations.
- Supervisory Bodies: The Trade Licensing Register administers the registration process, while the Czech National Bank (CNB), and Financial Analytical Office (FAÚ) keeps an eye on things to prevent money laundering or financial mischief.
1. Crypto-to-Fiat Exchange
Once you are licensed, your clients will be able to swap one type of cryptocurrencies like Bitcoin or Ethereum to conventional national currencies like dollars or euros.
2. Fiat-to-Crypto Exchange
Your clients will be able to use their conventional national currencies to purchase cryptocurrencies.
3. Crypto-to-Crypto Exchange
With this service, your clients can convert one cryptocurrency into another. For example, they can trade Bitcoin for Ethereum.
4. Intermediary Services
You act as an intermediary in the exchanges mentioned above, without getting directly involved in the asset ownership.
5. Custody of Crypto Assets
With a licence, you can store your clients’ crypto assets on behalf of them in custodian wallets. You may open a wallet for your client while holding the private key.
In the Czech Republic, there are activities that are not directly specified by law but can be conducted within the scope of VASP. These include:
- Initial Coin Offerings (ICOs): As a VASP, you may conduct ICOs where an offer to buy cryptocurrency is issued for the first time. However, It is important to note that during an ICO, you are only permitted to issue utility tokens. Distribution of security token requires another licence.
- Informational services: You can provide informational services regarding user balances.
- Company Formation: Establish a Czech limited liability company (SRO) with minimum share capital of 1 CZK.
- Local Presence: Secure an office address in the Czech Republic. While a physical office, local director and MLRO isn’t mandatory, having them can streamline communication with the authorities and build trust in your operations.
- AML/KYC Compliance: Implement AML and KYC policies and procedures.
- Management: Appoint qualified directors and an AML officer with relevant industry experience and expertise.
- Business Plan: Submit a detailed plan outlining your operations and risk management strategies.
Step 1: Evaluation
Estimated 2 - 4 weeks
We'll assess your business plan, advise on structure, and outline requirements, costs, and timelines.
Step 2: Fit & Proper
Estimated 1 - 2 weeks
We ensure your team is qualified and ready for Czech compliance.
Step 3: Company Formation
Estimated 1 week
We incorporate your SRO.
Step 4: Documentation & Preparation
Estimated 4 - 8 weeks
We handle translations, policy creation, and build your full application.
Step 5: Local Presence
Estimated 4 - 6 weeks, can be done in parallel with Documentation Prep
We'll assist with recruiting local staff (director, CoSec, MLRO) and securing office space.
Step 6: Submission & Approval
Estimated 6 - 9 weeks
We submit your application and manage communications with the Trade Licensing Register and FAÚ.
Step 7: Post-Approval Support
We offer ongoing compliance support, assisting with reporting, potential audits, and maintaining your licence.
Step 8: Banking & Payments
We help you find crypto-friendly banks or EMIs, set up payment infrastructure, and explore card issuance options, if applicable.
- Costs: Expect application fees, company registration, AML/KYC solutions, and professional support like translations. Contact us for a clear breakdown.
- Timeline: Based on our experience, the process can take 2-4 months. We’ll aim for the fastest outcome, leveraging our experience and local connections.
To start a crypto company in the Czech Republic, it’s important to understand the tax regulations. Cryptocurrency businesses are generally taxed similarly to other industries. According to EU regulations, most exchange services are exempt from VAT, but there are cases where VAT charges may apply to the buyer.
The Czech government also mandates customer identity verification for crypto exchanges to prevent tax
evasion. Most transactions are VAT-exempt. Key tax rates for Czech crypto companies include:
evasion. Most transactions are VAT-exempt. Key tax rates for Czech crypto companies include:
- Corporate Income Tax: 21%
- Profits Tax: 19%
- Capital Gains Tax: 0% – 19%
- VAT: 21% (basic rate)
- Social Security: 24.8%
- Health Insurance: 9%
Companies based in the Czech Republic are taxed on global profits, while non-residents are taxed only on local earnings. Resident companies must comply with local tax laws to avoid penalties.
1. Why choose the Czech Republic for my crypto business?
Enjoy a favourable regulatory environment, streamlined application process (potentially 2-4 months), cost-effective licensing, access to the vast EU market, and a thriving crypto community in Prague.
2. Is cryptocurrency activity legal in the Czech Republic?
Yes, running cryptocurrency activities is permitted and legal in the Czech Republic, provided you register for a Trade Licence as a virtual assets services provider (VASP).
3. How long does the application process typically take?
Expect a timeline of around 2-4 months. We'll work diligently to streamline the process and aim for the fastest possible outcome.
4. Do I need a physical office in the Czech Republic?
No, but it’s recommended. While a fully staffed physical office isn't mandatory, having a Czech director and MLRO demonstrates commitment and can streamline communication with authorities. We can assist with finding suitable office space (or virtual office) and connect you with qualified professionals.
5. Do I need prior experience in the crypto industry?
While experience is beneficial, the Czech authorities primarily focus on your team's qualifications and the strength of your application. We can help assemble a team that meets Czech regulatory expectations.
6. Can I reach the whole EU with a Czech crypto licence?
Yes! A Czech crypto licence grants you access to the entire European market, allowing you to offer your services across most EU member states, subject to potential notification procedures in specific member states. Let's discuss your target markets to ensure a smooth expansion.
7. Are there any hidden costs beyond the initial application fees?
Be prepared for ongoing costs such as AML/CFT monitoring, potential audits, annual reporting fees, and staffing your Czech office. We'll provide a transparent breakdown.
8. What kind of technology do I need for a Czech crypto licence?
You'll need systems for secure customer onboarding, transaction monitoring, KYC/AML procedures, and data security. We can advise on suitable solutions or connect you with trusted technology providers.
9. Can I outsource my AML/KYC obligations?
Yes, outsourcing your AML/KYC compliance is possible. We can connect you with reputable Czech compliance specialists for ongoing support.
10. What are my ongoing reporting obligations after obtaining the licence?
Expect regular AML/KYC, reporting, and audits. We offer ongoing compliance support to keep you on track.
11. Can you provide ongoing regulatory compliance support after I get the licence?
Absolutely! We offer ongoing support to ensure your business stays compliant with all regulations and requirements.
12. Is it difficult to find a crypto-friendly bank in the Czech Republic?
We understand the challenges of securing banking for crypto-related businesses. We have a network of contacts and can facilitate introductions with crypto-friendly banks or EMIs. We’ll help you set up the necessary infrastructure, including card issuing options, if applicable.
13. Why choose your company?
We have a proven track record and a client-focused, streamlined project management approach for licensing applications. We're experts in navigating global regulations and possess in-depth knowledge of Czech crypto regulations. We aim to be your long-term partner for compliance in the Czech Republic and your wider European expansion.
14. Can you help with the entire licence application process?
Absolutely! From company formation to application preparation, submission, and communication with regulators, we'll guide you every step of the way.
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CryptoLicence specializes in simplifying the registration and licensing process for crypto businesses across global markets. We are committed to helping crypto businesses, startups and investors navigate complex regulatory landscapes with ease, ensuring full compliance and smooth market entry.
With in-depth knowledge of key markets, we provide tailored compliance solutions for businesses in regions such as Hong Kong, Singapore, Malaysia, Europe and North America. Our expertise spans popular licenses, including the Czech Republic VASP license, Swiss SRO, Polish VASP, and Salvadoran cryptocurrency licenses. Our global network and understanding of local practices give your business a competitive edge.
We recognize the unique challenges international startups face, from navigating regulations and cross-border compliance to overcoming cultural and language barriers. CryptoLicence is here to offer end-to-end support, from interpreting the latest regulations to providing comprehensive compliance solutions. Our goal is to make the licensing process seamless, so you can focus on scaling your crypto or FinTech venture globally.
We recognize the unique challenges international startups face, from navigating regulations and cross-border compliance to overcoming cultural and language barriers. CryptoLicence is here to offer end-to-end support, from interpreting the latest regulations to providing comprehensive compliance solutions. Our goal is to make the licensing process seamless, so you can focus on scaling your crypto or FinTech venture globally.
Jing C
Your expert in global crypto licensing and compliance, Jing brings a wealth of knowledge and experience to help you navigate international regulations.
Cing Hui
Your expert in global crypto licensing and compliance, Jing brings a wealth of knowledge and experience to help you navigate international regulations.