To date, the capital of Czechia, Prague, is one of the centers with the biggest number of crypto ATMs (in BTC) being one of the most popular places for crypto investors to open their undertakings. Individuals looking to set up a company dealing with digital assets and crypto-related products are obliged to adhere to the norms that were stipulated for this kind of commercial operation. What are these obligations and how to apply for a crypto license in the Czech Republic – read on to figure out answers to these questions.
Overview of crypto regulation in Czechia
The Czech sector of digital assets was not under legal remit until now, however, the authority proposed regulative norms for such type of servicing several years ago, introducing new obligations for the entities doing crypto business in this jurisdiction. According to them, the preconditions to opening a business are as follows:
- Business people who are seeking to form a business should follow the KYC and AML rules, determining the identity of customers among other obligations.
- Entities are obliged to act in adherence with a set of other requirements. They should complete registration with the Licensing Department.
- Czechia is an EU country, meaning that the jurisdiction does not deem cryptocoins as a monetary unit.
- The authority set certain requirements in line with the Law regulating the counteraction to the illegal circulation of funds and the contribution of funds to terrorist operations.
Overview of a licensing process
The procedure of acquiring an official permission for dealing with digital assets consists of several stages. A company is obliged to get licensed to conduct activities, if providing services without legal approvals, the actions of a non-licensed exchange will be deemed as involved in digital assets fraud. An applicant should ensure the adherence to such rules:
1) A crypto company in Czechia must be properly formed. The most suitable legal and organizational form for an exchange is an LLC.
2) An overview must be drawn up that describes the business in detail, along with the description of platforms or programs for operation. This paper should be completed in the official language of the country or have been translated.
3) No criminal conviction – a certificate of good conduct should be submitted to authorities.
4) Opening an account in a local bank for payments is mandatory.
5) Staff and the senior managers should possess the appropriate expertise in the financial sector.
6) Policies should be drawn and collected for operation with clients.
7) Full compliance with the law regulating the counteraction to illicit circulation of funds and the contribution of funds to terrorist operations.
8) A fee should be paid before the provision of documentation.
If you prepared the above-listed papers in a duly manner, you will acquire an official authorization allowing to run a business dealing with digital assets and crypto-related products, i.e. a license. However, to ensure you don’t fail by a possible deny (this can happen if even the smallest error occurs in the documentation and application), we highly suggest that you contact our lawyers.
If you have any questions or intend to open crypto company in this jurisdiction, contact us. Our experts have a huge expertise in buying and selling businesses, as well as licensing.
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