Eternity Law International News Crypto license in Czech Republic

Crypto license in Czech Republic

Published:
May 25, 2023

Crypto-currencies are a unique means of payment, they aren’t represented as a specific form of banknotes or coins, but exist only as a digital means. In Czech Republic, all crypto-currencies are legal, and therefore there’ll be no problems with their use. They have the status of intangible movable property.

Our company is ready to provide you with professional assistance in establishing Czech crypto company and help to obtain an appropriate license. Our specialists possess extensive expertise in such area being aware of all nuances and subtleties of handling crypto-currencies in this country. We conduct professional activity in other areas, in particular, with gambling structures, Forex brokerage firms and others.

Czech Republic cryptolicense: main norms and rules

  1. Registration of legal crypto-exchange, getting real office premises and contribution of capital (min. capital from 10,000CZK; companies must pay it within three months).
  2. Documentation must be prepared according to the main requirement of regulative authority, and banking account will be opened.
  3. Creation of a business-plan.
  4. Drafting of AML/KYC policy, risk control and monitoring rules.
  5. Payment of state duty.
  6. The owners and directors of the crypto firm must possess an impeccable image and provide an extract from absence of penal records.
  7. One company’s director is needed.
  8. Creation of internal mechanisms for monitoring and collecting data about clients.
  9. Identification of suspicious crypto-currencies transactions and transfer of details connected with them to government agencies.
  10. Keeping records of financial operations.

Types of crypto-licenses in Czech

In the Czech Republic, cryptocurrency is not recognized as a financial instrument, and its sale, purchase or exchange for fiat money is not a financial service. Cryptocurrency is also not considered an investment tool here, so a special license is not required for operations with it. The Ministry of Finance of the Czech Republic recognizes cryptocurrency as an intangible asset, and its exchange for another asset or money does not require a crypto license in Czech Republic.

Four types of licensed activity covering deals with crypto-currencies exist:

  • classical: changing of crypto-currencies;
  • fiat: changing cryptocurrency for fiat and backward;
  • standard: changing all types of currencies;
  • with specific powers and possibilities: offering appropriate service for cryptowallets and keys creation and storage.

Our specialists are reliable allies for businessmen intending to start business-projects and launch their commercial structures on the market. We help in establishment commercial structures in hundreds of jurisdictions, in particular, offshore.

Strengths of Czech crypto license

Due to loyalty of legislative norms and provisions, and transparent tax system, Czech is appealing for enthusiasts in field of cryptography and IT.

  1. Prestigious European jurisdiction.
  2. Access to the European market.
  3. A wide network of double tax treaties concluded: more than 85 countries.
  4. Non-resident directors are not required to obtain a work permit locally.
  5. No residency requirement for holders of shares and heads of organizations.
  6. Registration of firms is permitted remotely.

How to get cryptolicense in Czech Republic: main steps

  1. Business-structure registration. To get Czech cryptolicense businessmen need to establish local legal entity. Workers and directors of the enterprise may be residents of foreign jurisdictions.
  2. Contact regulative authority. Before starting activities and getting Czech Republic crypto license, crypto-company is needed to appoint a person for interaction with regulator and AML-officer to submit notifications of non-standard deals to regulative authority.
  3. Collection of documentation and correct formation of internal infrastructure. Opening account in banking facilities or payment systems, creating corporate accounts on a crypto-exchange, setting up automated transactions accounting, providing mechanisms for collecting and securely storing customer and transaction data.

Our specialists are ready to provide you with full assistance in launching a crypto-business in this jurisdiction and getting Czech crypto exchange license. We will take care of all aspects of interaction with the regulator and preparing the company for launch. With us, you’ll quickly and safely become owner of a lucrative and efficient crypto-structure.

Taxation

Resident and non-resident cryptocurrency firms must pay single corporate taxes at a rate of 19%. The 5% preferential rate of return is only available for investment funds. Income from passive sources (dividends, interest, royalties) is taxed at a standard rate of 15%, which can be reduced through the application of bilateral tax treaties.

How much is a cryptocurrency exchange license in Czech Republic?

Total cost of opportunity to get crypto license in Czech Republic is always calculated individually and depends on many factors, in particular, on the service range that the firm intends to offer, on scale of business-activities and other nuances. Our specialists calculate for you the real optimal cost and direct its efforts to the most accurate and efficient allocation of your budget. We are exceptional specialists in this field, working with any commercial industry and achieving the best results for our clients. Our task is fastest and correct junction of your business-structure to the market of your chosen country, to which we dedicate our expertise and professional background.

What is a cryptocurrency exchange in the Czech Republic?

A cryptocurrency exchange is a platform through which it is possible to exchange cryptocurrencies among themselves. In addition, on crypto exchanges you can exchange cryptocurrencies for fiat money. In order to be able to operate as such an exchange, you must obtain the appropriate Czech crypto exchange license.

Is cryptocurrency regulated in the Czech Republic?

Cryptocurrencies in this jurisdiction are regulated by CNB (Česká Národní Banka) – the Czech National Bank. This institution also controls the activities of all firms that work with crypto-assets and provides  crypto license in Czech Republic. In addition, crypto companies must strictly comply with the adopted European Directives regarding illicit circulation of funds and countering terrorist operations.

Which bank in the Czech Republic supports cryptocurrency?

Trading operations with cryptocurrencies are not prohibited in the Czech Republic. One of the banks that is most supportive of cryptocurrencies and popular among entrepreneurs is CSOB. Companies are allowed to operate crypto-means if they have Czech Republic crypto license.

How is the Czech Republic using blockchain?

Cryptocurrencies in this jurisdiction are used for settlements and payments for business transactions. They are allowed to be exchanged among themselves, for fiat and stored as deposit funds in banks. Every Czech crypto company needs to possess special license.

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