The Czech Republic's favorable stance on cryptocurrencies and its streamlined bureaucratic processes have transformed it into a hospitable environment for crypto companies. These entities are expected to align their core activities with overarching legislation and comply with the EU-imposed Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) requirements.

While the Czech Republic lacks a specific national regulatory framework for overseeing crypto companies, the entire Czech crypto sector is subject to the European Union's "Security of Internet Payments and Cryptocurrencies" guidelines. The oversight of the financial market in the Czech Republic falls under the purview of the Czech National Bank (CNB).

Possessing a Czech crypto license grants the license holder the capability to offer the following services:

• Trading cryptocurrency for fiat currency (crypto-to-fiat exchange).
• Converting fiat currency to cryptocurrency (fiat-to-crypto exchange).
• Swapping one cryptocurrency for another (crypto-to-crypto exchange).
• Offering a service for crypto wallet provision (custodial crypto wallet service).
• Providing services for storing client cryptocurrencies (crypto storage service).
• Facilitating cryptocurrency transfers (crypto transfer service).
• Operating a comprehensive cryptocurrency exchange platform.

Presently, most cryptocurrency companies intending to commence economic activities in the Czech Republic must acquire one of the standard trade licenses from the Trade Licensing Register. These licenses grant permission to operate within the EU, allowing the establishment of offices in any member country without navigating extensive bureaucracy, provided that local authorities are duly notified in accordance with local regulations.

Depending on the intended use of the cryptocurrency, companies may apply for one of the following licenses:

Classical – Companies holding this license are authorized to exchange cryptocurrencies for a fee.
Fiat – Companies with this license can exchange both cryptocurrency and cash for a fee.
Traditional – Companies possessing this license are entitled to exchange various currencies for a fee.
Specialized – Companies holding this license are permitted to offer services for creating and managing crypto wallets and customer keys.

Failure to obtain the appropriate license exposes the crypto company to the risk of being labeled as fraudulent, facing fines of up to 500,000 CZK (approximately 21,000 EUR), and potential closure.

In securing any of the four licenses, a cryptocurrency company needs to undergo registration in the Czech Republic. The Limited Liability Company (SRO) stands out as a widely favored legal business structure in the country, thanks to its benefits such as minimal equity requirements, a limited number of founders, and the potential for exemption from financial audits. Registration can be completed within three weeks, contingent upon the timely submission of all required documentation.

• Comprehensive business plan outlining the intricacies and business model for sustained operations, accompanied by detailed financial statements.
• Establishment of a registered physical office within the Czech Republic.
• Formulation of a domestic anti-money laundering/counter-financing of terrorism policy aimed at detecting and reporting fraudulent activities.
• Hiring an anti-money laundering officer, with training aligned to the company's operational model and reporting requirements (our company provides a service offering specially trained personnel for these roles).
• Description of all hardware and software employed for the proposed economic activity.
• Development of data protection procedures compliant with GDPR and other relevant legislation, while also facilitating data exchange with authorities.
• Creation of policies and procedures to safeguard client funds.

• Conducting a company name search.
• Providing criminal records for company members to confirm their eligibility for appointments.
• Securing a legal address for a minimum period of one year.
• Initiating the opening of a corporate bank account.
• Transferring the minimum share capital, set at only 1 CZK (approximately 0.042 EUR).
• Acquiring a mandatory trade license from the Trade License Registry.
• Drafting and preparing the company statutes.
• Fulfilling the payment of state fees associated with registration – 6000 CZK (approximately 250 EUR).
• Registering the company with the local Registrar of Companies.
• Enrolling the company with the FAA for Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) reporting obligations.

Due to the straightforward process of establishing a company and applying for a crypto license in the Czech Republic, the licensing procedure typically takes around one month. If the application is successful, the issued license is specific to particular crypto activities. It is important to note that occasionally, the license may be conditional, requiring the new licensee to fulfill additional requirements before commencing operations in the Czech Republic.

Upon obtaining a crypto license in the Czech Republic, the licensee is obligated to share pertinent reports, such as client information, with authorities like the CNB and the FAU. In the event of errors or refusal to comply, the license may be suspended, and the company might be deemed fraudulent, with no option to obtain a new license.

Step 1
Collecting client documents to initiate the process
Conducting preliminary project analysis
Compiling KYC information and business description
Preparing a power of attorney for client verification
Gathering a criminal record certificate

Step 2
Registering a Limited Liability Company (S.R.O.) in the Czech Republic
Translating the power of attorney and criminal records certificate into Czech
Executing the notarial deed for company registration
Submitting company documents to the Registrar of Companies

Step 3
Pre-application preparations
Creating AML/KYC policies tailored to the client company's cryptocurrency operations
Employing and training an AML officer for the company, aligning their skills with company operations, and providing guidance on regulatory reporting and registration
Submitting the filing for registration with the FAU, the financial analysis unit of the Czech Republic

Step 4
Opening a Business Bank Account
Providing a complete set of notarized corporate documents for account opening
Engaging in preliminary discussions with the payment institution and assisting the client throughout the account opening process

All necessary documentation must be presented in the Czech language. If needed, our team is prepared to provide assistance.

Alternatively, you can opt for a remotely registered company, in which case you must furnish us with a certified power of attorney authorizing us to act on your behalf throughout the entire process.

It is imperative for cryptocurrency license holders to consistently adhere to rigorous corporate reporting obligations, closely aligned with the International Financial Reporting Standards (IFRS).

The annual financial statements are required to encompass a balance sheet, income statement, and accompanying notes. Companies subject to mandatory audit for their financial statements must additionally provide a statement of cash flows and a statement of changes in equity. These annual financial statements are publicly disclosed in the Business Register and must be submitted alongside the tax return.

Audit is compulsory for companies meeting at least two of the following criteria:

• Turnover surpasses 80 million CZK (approximately 3.37 million EUR)
• Total assets exceed 40 million CZK (approximately 1.7 million EUR)
• Average number of employees is greater than 50

Should you choose to acquire a cryptocurrency license in the Czech Republic, our proficient and proactive team is ready to provide comprehensive assistance and guidance throughout the application process. We extend our support in the formation and licensing of crypto companies, along with accounting services.

• Compilation of necessary documentation for the registration of a new company in the Czech Republic.
• Securing a legal address for the company.
• Translation of a criminal record certificate into Czech through an authorized translator.
• Settlement of state fees associated with company registration.
• Settlement of notary fees connected to company registration.
• Company registration in compliance with legal requirements.
• Acquisition of the license for offering services related to virtual assets in the Czech Republic.
• Development of internal AML/CFT documentation in adherence to legislative requirements.
• Assistance to open Business Account for Crypto Operating Activity (*)
• Provision of a comprehensive set of corporate documents, including a separate printout (notarized, apostilled, translated).
• Aid in the hiring of the KYC/AML officer and registration with tax authorities, if deemed necessary by the client.
• Eventual charge applicable by the Fintech Institution.

• Compilation of essential documents for the re-registration process of a company in the Czech Republic.
• Establishment of a legal address for the company.
• Settlement of state fees associated with the re-registration of the company.
• Settlement of notary fees connected to the company's re-registration.
• Development of internal AML/CFT documentation in alignment with legislative requirements.
• Support in recruiting the KYC/AML officer and facilitating registration with tax authorities.
• Assistance to open Business Account for Crypto Operating Activity (*)
• Provision of five hours of general counseling.
• (*) Eventual charge applicable by the Fintech Institution.
• The process will take approximately 2 to 3 weeks in case of a Readymade company.

How long is the license acquisition process?
Due to the streamlined process of establishing a company and applying for a crypto license in the Czech Republic, obtaining a license may take as little as 3-4 weeks.

Can individuals outside the Czech Republic own a crypto company?
Certainly. Cryptocurrency companies in the Czech Republic can be established by any individual or legal entity, with no specific residency restrictions.

Can a non-resident serve on the board of a Czech Republic crypto company?
Absolutely. A Czech Republic crypto company is required to have at least one director, and no specific residency requirements apply.

Is having a bank account a prerequisite for obtaining a license?
Yes, it is.

What is the minimum authorized capital for a virtual currency service provider?
To apply for a crypto license in the Czech Republic, establishing a crypto company is a prerequisite. The minimum authorized capital for limited liability companies (S.R.O.) in the Czech Republic is 1 CZK (approximately 0.042 EUR).

What is the duration of a crypto license?
In the Czech Republic, crypto licenses are issued for an indefinite period.

What steps are required for a crypto company to obtain a license in the Czech Republic?
To successfully apply for a crypto license in the Czech Republic, crypto companies need to complete the following procedures:

• Open a corporate bank account.
• Fulfill the authorized capital requirement.
• Employ an AML officer in the Czech Republic with expertise in anti-money laundering and terrorism financing compliance.
• Initiate the license application process with the Financial Analytical Office (FAU).

What measures are implemented in the Czech Republic to prevent money laundering and the financing of terrorism?
To ensure internal compliance with anti-money laundering and terrorism financing regulations, crypto companies are obligated to hire a Czech Republic AML officer. This officer conducts an assessment of the organization to identify criminal risk exposure and financial crime. Additionally, companies may be subject to an external audit under certain specified criteria.

Our lawyers and financial services specialists at Atrium Legal Lab provide solutions to clients by combining the traditional legal fabric with new technologies.

Czech Republic Crypto Licenses are recognized worldwide. It provides excellent advantages, such as:

• Fast project implementation
• No share capital required
• No obligatory local staff member
• Extremely Low Cost

Atrium Legal Lab has a team of trained professionals to advise clients who are interested to get licensed as a Virtual Asset Services Provider (VASP) in Czech Republic.

In particular, we welcome questions about Czech Crypto registration and are pleased to assist you.