Acquiring a Virtual Asset Service Provider (VASP) license is a key requirement for running a lawful and trusted crypto operation within Europe’s fast-growing digital asset market. Our firm helps businesses navigate the licensing process smoothly, ensuring regulatory compliance and efficiency in leading jurisdictions such as Lithuania and the Czech Republic.

The Czech Republic has quickly positioned itself as one of the most appealing destinations for obtaining a crypto license. In practice, this license is often referred to as a CASP license or a VASP license, depending on the regulatory perspective. While the terminology differs, both refer to frameworks that require strict adherence to AML/KYC rules and operate under a clear and transparent regulatory environment. This comprehensive system allows crypto businesses to build trust, ensure security, and confidently expand within the European market.

Under Czech legislation, the Czech National Bank oversees the overall supervision of the country’s financial market.

At the same time, local regulators have clarified that cryptocurrencies are not recognized as legal tender. Blockchain-based crypto data is not treated as a claim tied to any traditional currency, regardless of whether the currency is issued by a central bank, financial institution, or payment provider. Furthermore, Article 4(1) of the Payment System Act excludes crypto assets from being classified as electronic money. Likewise, under Article 2(1)(c) of the same law, crypto assets do not fall under the definition of funds. Instead, in most cases, they are legally regarded as commodities.

The Czech Republic’s cryptocurrency regulatory landscape underwent a seismic transformation in February 2025 with the implementation of the Markets in Crypto-Assets Regulation (MiCA). This comprehensive guide explores the critical transition from VASP to CASP licensing, as mentioned above, providing compliance professionals and crypto businesses with essential insights for navigating this new regulatory framework.

The Markets in Crypto-Assets Regulation (MiCA) marks the European Union’s most comprehensive initiative to unify cryptocurrency regulation across its member states. In the Czech Republic, MiCA has been incorporated into domestic law through the Digital Finance Act (Act No. 31/2025 Coll.), which entered into force on February 15, 2025.

Key goals of MiCA’s adoption in the Czech Republic include:

• Stronger Consumer Safeguards: Setting clear requirements for crypto-asset service providers to enhance investor and user protection
• Maintaining Market Integrity: Introducing transparency obligations and operational rules to ensure fair trading practices
• Regulatory Alignment: Bringing Czech legislation in line with the EU-wide regulatory framework
• Financial System Stability: Establishing risk management obligations to safeguard the wider financial sector

The Czech National Bank (CNB) acts as the primary authority for MiCA implementation and is vested with broad responsibilities, including:

Licensing Functions: Assessing applications and issuing CASP licenses, ensuring that all regulatory conditions are satisfied
Supervisory Oversight: Continuously monitoring CASPs’ operations, financial stability, and adherence to compliance requirements
Enforcement Powers: Imposing penalties, suspending activities, or withdrawing licenses in cases of non-compliance
Coordination Duties: Collaborating with other domestic and international authorities on AML/CFT matters, consumer protection, and cross-border regulatory issues

Licensing Process – Key Preparation Areas
Obtaining a CASP license in the Czech Republic requires thorough preparation across several regulatory dimensions:

Capital Requirements by Service Type
Minimum capital thresholds are established under MiCA Article 67 and transposed into Czech National Bank (CNB) rules. These vary depending on the services provided, ensuring that prudential safeguards are proportionate to the level of risk:
€50,000 – applicable to advisory services relating to crypto-assets
€125,000 – applicable to operators of trading platforms
€150,000 – applicable to higher-risk activities such as custody or exchange services

These capital requirements, outlined in Article 67 and Annex IV of MiCA, reflect the EU’s objective of aligning the prudential treatment of CASPs with broader financial sector standards.

Other service-specific considerations include:

Custody and administration of crypto-assets: Higher capital thresholds to address asset-safeguarding risks
Operation of trading platforms: Enhanced capital requirements due to significant operational exposure
Exchange services: Capital calibrated to transaction volumes and counterparty risks
Portfolio management: Requirements reflecting fiduciary duties
Investment advice: Lower capital obligations for advisory-only activities

Note: Exact figures should be verified with the CNB, as implementing regulations may update specific thresholds.

Governance and Personnel Standards
“Fit and proper” checks for directors, executives, and other key individuals
Transparent organizational structure with clearly defined responsibilities
Comprehensive internal policies covering compliance, risk management, and operational procedures
Adequate IT infrastructure with robust cybersecurity safeguards

AML/CFT and Compliance Framework
Customer due diligence and onboarding procedures
Ongoing transaction monitoring and suspicious activity reporting mechanisms
Regular staff training on AML/CFT obligations
Independent audits and strong internal control systems

The shift to MiCA-compliant CASP operations presents both challenges and significant growth potential for crypto businesses in the Czech Republic. While the regulatory framework is extensive, it offers a clear roadmap for establishing credible, sustainable, and well-governed cryptocurrency operations.

Companies that proactively adopt these regulations, implement robust compliance systems, and engage experienced professional support are best positioned to succeed in this new regulatory landscape. Timing is critical—the transition period is strict—but the benefits of full compliance are considerable.

The Czech Republic’s MiCA implementation signals the start of a new era in crypto regulation. By thoroughly understanding the requirements, preparing in advance, and taking decisive action, businesses can turn regulatory compliance into a strategic advantage rather than a constraint.

For organizations seeking specialized guidance on MiCA compliance and CASP licensing, professional advisory services can deliver the expertise and structured frameworks needed to navigate the regulatory process successfully.

To secure a Crypto-Asset Service Provider (CASP) license in the Czech Republic under MiCA, a company must establish a local limited liability company (S.R.O.) with a physical presence and an operational office in the country.

Applicants are required to meet minimum share capital thresholds that depend on the type of services offered (e.g., €125,000 or €150,000) and implement comprehensive internal policies covering risk management, anti-money laundering (AML), and counter-terrorist financing (CFT) in accordance with Czech National Bank standards.

While it is generally permissible for the company’s directors and officers—including the Money Laundering Reporting Officer (MLRO)—to reside outside the Czech Republic, specific conditions and regulatory requirements must be satisfied.

1. Director and Officers:

Residency of Directors:
There is no formal requirement for directors or officers to reside in the Czech Republic. However, regulatory authorities, including the Czech National Bank (CNB), generally prefer that key personnel be located within the EU/EEA or maintain a connection to the Czech Republic to facilitate effective supervision.

Local Representation:
It is recommended that companies seeking a crypto license establish a local office or appoint a local representative. This helps ensure smoother communication with regulators and supports compliance with ongoing obligations.

Key Management Roles:
Although residency is not mandatory, positions such as the MLRO and other senior officers must be suitably qualified and capable of performing their responsibilities effectively, regardless of whether they reside within the country.

2. Regulatory Framework:

The licensing of crypto businesses in the Czech Republic is regulated under the Czech Act on Anti-Money Laundering (AML) and relevant EU crypto-asset regulations, including the Fifth Anti-Money Laundering Directive (5AMLD). Compliance with AML and KYC obligations is mandatory for legal operations.

The Czech National Bank (CNB) oversees both the licensing and ongoing supervision of crypto service providers. Companies must meet defined organizational and operational standards, including robust governance, internal controls, and risk management frameworks, as well as the proper appointment of key officers such as the Money Laundering Reporting Officer (MLRO).

3. Key Requirements for Crypto License:

AML and KYC Compliance:
The company must establish thorough anti-money laundering (AML) and know-your-customer (KYC) procedures. This is a core requirement for obtaining a crypto license in the Czech Republic.

Fit and Proper Assessment:
The Czech National Bank (CNB) evaluates the integrity, competence, and professional experience of directors, officers, and key personnel through a “fit and proper” test.

Local Office Presence:
While directors or officers are not required to reside in the Czech Republic, maintaining a local office is standard practice. This supports operational efficiency and facilitates communication with regulatory authorities.

Capital Requirements:
The company must satisfy the minimum capital thresholds established by regulators, in alignment with EU standards.

Governance and Internal Controls:
Applicants must implement robust governance structures, including effective risk management frameworks, proper reporting procedures, and strong internal controls.

4. Practical Considerations:

Local Contact Point:
Even if directors and key personnel are located abroad, it is recommended to appoint a local representative or maintain a local office to manage operational obligations and ensure smooth interaction with regulatory authorities.

Language Requirement:
Official communications with the Czech National Bank (CNB) are generally conducted in Czech. Companies should therefore have a local contact or use professional translation services to handle these communications effectively.

To secure a crypto license in the Czech Republic under MiCA (Markets in Crypto-Assets) regulations, the Czech National Bank (CNB) requires a comprehensive set of documents to verify that the business meets regulatory and financial integrity standards. This typically includes detailed information about the company’s organizational structure, directors, and key personnel.

Below is a list of the common documents requested from the company, its directors, and officers, in line with MiCA and Czech national requirements.

1. Corporate Documents

Corporate Documentation of the Czech S.R.O.:
Complete set of company formation and registration documents.

Business Plan:
A comprehensive plan outlining the specific crypto services offered, operational approach, and financial projections. The plan should reflect a clear understanding of MiCA requirements.

AML/KYC Policy:
A detailed Anti-Money Laundering (AML) and Know-Your-Customer (KYC) policy aligned with MiCA standards, including:

Procedures for customer identification and verification
2. Documents Related to Directors and Key Personnel

- Personal Identification Documents for Directors and Key Officers:
- Passport or National ID: Valid identification for all directors and key personnel.
- Proof of Residence: Recent document such as a utility bill or bank statement confirming address.
- Curriculum Vitae (CV): Comprehensive CVs outlining professional experience, qualifications, and relevant expertise in finance, cryptocurrency, or business management.
- Criminal Record Certificate: Clean criminal record from the country of residence, forming part of the “fit and proper” assessment to confirm legal integrity.
- Background / Fit and Proper Assessment: Verification of expertise, integrity, and financial reliability, which may include:
- Evidence of professional qualifications
- Record of any previous financial misconduct or criminal activity
- Declaration of Financial Standing: Personal statement from directors declaring their financial status, including any history of bankruptcy or insolvency

3. Compliance Documents

Compliance Officer Information:
The company must designate a Compliance Officer (separate from the Money Laundering Reporting Officer, MLRO). Documentation should include the officer’s qualifications and experience in managing financial regulatory obligations.

MLRO Appointment:
A dedicated Money Laundering Reporting Officer (MLRO) is required. The submission should include:
- Personal details and background information of the MLRO
- Evidence of qualifications and experience relevant to AML/CFT responsibilities
- The company’s documented AML procedures

4. Proof of Local Presence

Local Office:
If directors are not physically based in the Czech Republic, the company may need to appoint a local representative or maintain a local office.

Registered Address:
Provide evidence of a local registered address in the Czech Republic for company registration purposes.

5. Other Documents

Consent to Regulatory Supervision:
A formal declaration agreeing to the Czech National Bank (CNB) supervision, confirming that the company will adhere to all applicable Czech and EU regulations.

Corporate Governance Documentation:
Policies detailing the company’s governance framework, including board responsibilities, operational structure, and decision-making processes.
General Licensing Process in the Czech Republic under MiCA
Initial Application: Submit all required documents to the CNB.
Fit and Proper Assessment: CNB evaluates the background, qualifications, and financial integrity of directors and key personnel.
AML/KYC Compliance Review: CNB verifies that the company has effective AML procedures and meets all KYC obligations.
Decision: Based on submitted documents and due diligence, CNB issues a decision. Approval results in the granting of the crypto license.
Ongoing Compliance: Post-licensing, the company must continuously comply with MiCA, AML/KYC, and other relevant EU regulations.

Securing a MiCA crypto license in the Czech Republic provides numerous strategic benefits, particularly for businesses aiming to operate legally and competitively within the EU crypto market. Key advantages include:

1. Full Access to the EU Market (Passporting Rights)
2. Business-Friendly Regulatory Environment
3. Lower Operational Costs
4. Efficient Licensing Process
5. Skilled, Multilingual Workforce
6. Strategic Central European Location
7. Strong Data and IT Infrastructure
8. Political and Economic Stability
9. Lower Regulatory Burden Compared to Heavier Jurisdictions
10. Future-Proof Compliance under MiCA