Cryptocurrency license in Czech Republic

To furnish usefulness communed to crypto-currency in the EU-market, you ought to register a legal entity in one of the countrysides of this association and acquire permission for such shiftings from the regulator. In the Czech Republic crypto license is among the cheapest in Europe, but thanks to its registration you enter the markets of all EU countries. In recent years, more and more companies are seeking to obtain a license to trade cryptocurrency in this country.

However, not everyone understands how to properly apply for a cryptolicense in Czechia and what prerequisites the regulator imposes. This article will help you quickly understand the prerequisites of the local lawmaking and the opportunities you get when gaining a license to trade cryptocurrency in the Czechia.

Lawmaking regarding crypto-currencies in the Czechia

The local CB acts as the regulator of cryptocurrency-activity in the Czechia. Its employees are engaged in the general supervision of the country’s-market. The lawmaking states that crypto-currency is not legal tender. Therefore, they are not treated as real money, they cannot be deposited in a bank or given out at interest as a loan.

At the same time, they are also not supposed as electronic-money and according to the lawmaking on payment-systems, crypto-currency is classified as an entity. Institutions wishing to initiate functioning in the field of crypto trading in the Czechia must not violate legislation on:

• money laundering issues;
• the country’s penal-code;
• legislation on international-sanctions issues;
• laws on licensing, banking, and investment-funds.

Meanwhile, permission applicants must enroll in the following activities:

• Cryptocurrency trading;
• managing investment-funds whose accounts contain cryptocurrency;
• carrying out money transfers associated with procedures with crypto-currencies (storage, purchase/sale of crypto-currency, transfer of funds to interactions, etc.).

Prerequisites for those wishing to obtain a crypto-license

For a license applicant to be able to issue this permit, he needs to officially register a legal-entity. For this activity, the structure of the LLC is best suited. It takes 3 weeks to enlist a corporation, provided that you have correctly introduced the entire package of docs to the regulatory-authorities.

To consider your app for a cryptolicense, you need to submit the subsequent docs:

• a business-plan in which the industry is prescribed and a model is developed to ensure the continuity of operations and forecast financial-statements;
• a document confirming the presence of an office in the Czechia;
• internal-procedures on the policy of combating illegal operations fraud, money-laundering, and financing of illegal formations;
• data on the director and employees in the controlling department;
• data on the planned use of software for business-operations;
• internal-procedures for protecting customer data and ensuring the security of customer-funds.

After receiving these documents, the CB starts reviewing your app and within 1-2 months can decide on granting a permission to function.

Procedure for Acquiring a crypto-license in the Czechia

It is essential to remember that all docs to the CB is provided in Czechia. After submitting the package of documents, the appreview procedure begins. The instances of the CB:

• inspect the name of the new legal entity;
• examine the data about the director and workers to exclude any prohibitions on doing corporation in the cryptosphere;
• check that the company has a rented office in the Czechia for at least one year;
• examine the certificate of bank-accounts and the required amount of at least 1 crown;
• initiate the assignment of a trading license and record this data in the relevant register;
• prepare the memorandum of association;
• receive info from the client on the expenditure of the state-registration fee;
• check whether the corp is registered in the legal-entities registers and make the tax controls.

If all the above info is provided correctly, the company will receive the preferred type of assignment and will be able to start operating in the Czech market. If any discrepancies are identified, the CB staff may request added docs. If they are not provided, the corporation will be denied permission.

Who can help with the permission

It is achievable to fetch a crypto-license in Czechia on your own. But it is more correct to entrust this issue to professionals. Our employees have repeatedly worked with the Czech CB, know its prerequisites, and are ready to help you gather the right package of docs. We will conduct an introductory analysis and help you correct errors in the docs so that the Central Bank will issue you the essential type of license. Each of our workers is an expert in their field and we will send you the best managers who will prepare all documents quickly and efficiently. After cooperating with us, you will already receive your license while your contenders are correcting their documentation.