Eternity Law International News Requirements for crypto companies in Czech Republic

Requirements for crypto companies in Czech Republic

September 4, 2022

The Czech legal framework is harmonized with the EU 4th AML Directive and it sets a number of requirements for crypto companies in the Czech Republic. The amended legislation encompasses a wide variety of crypto-related operations, as it refers to those organizations that sell/buy, maintain or administer cryptocoins or offer other services associated with digital assets.

From AML perspective, cryptocoins are deemed as digital units that are not included in the category of government-issued money but are accepted as a form of payment for goods and services. Each Czech crypto company is subject to these laws in terms of AML/CFT:

  • Law on Combating Money Laundering (Law No 253/2008),
  • Money Laundering Ordinance (Decree No 281/2008), 
  • Criminal Code (Law No. 40/2009), 
  • Law on International Sanctions (Law No. 69/2006).

Under the law, businesses planning to carry out their crypto activity in Czechia must acquire a license. It permits operation within the EU, including the establishment of offices in any EU member state without having to tackle red tape, provided that they inform domestic authorities on that.

Holders of EU/EEA crypto licenses are not obliged to acquire a Czech license. Instead, they could inform the Czech authority by submitting them with a passport.

If the crypto company operates without legal permission, it risks being deemed engaged in fraud activities, which is subject to imposing fines of up to 500,000 CZK and being forced to close.

Under requirements, setting up the Czech physical presence of an entity is mandatory. The company may be formed as an LLC – one of the most widely used legal business forms because of the following benefits: low minimum equity requirements, a small number of owners, and the possibility to be exempt from financial audits. Generally, the process of incorporation is completed within 3 weeks, provided that all obligatory papers are provided to the regulator in due course.

Main requirements for Czech crypto companies

An applicant is obliged to satisfy the following obligations:

  • Draw up a business plan unveiling the business model and details of the financial projections;
  • Establish an office in the country;
  • Employ employees, with a minimum of 2 directors with sufficient educational and professional expertise and with clear criminal records;
  • Prepare internal control systems, alongside AML policy to guarantee detection and prevention of fraudulent activities;
  • Appoint an AML officer to keep in line with the legislation;
  • Detail hardware and software applied for the intended activities;
  • Draw up policies and procedures that guarantee the security of client funds, their information, etc.

Once a crypto company has obtained a permission, a licensee must regularly report to the regulator on its operation. 

Reporting obligations

The activity of crypto businesses must be in line with the International Financial Reporting Standards (IFRS). In accordance with it, annual financial statements must contain a balance sheet and income statements. They must be filed along with the tax return.

In terms of auditory rules, the businesses must be audited if they meet at least two of the following parameters:

  • Turnover is over 80 million CZK;
  • Total assets are over 40 million CZK; 
  • The average number of employees is at least 50.

For other details of requirements for crypto companies in Czech Republic, please contact us. Reach out to our professionals and discover the services we provide.

You may also view new offers in categories Cryptocoins and licensing of cryptocurrency operationsReady-made companiesBanks for sale and Licenses for sale.

You could be interested

Regulation of online gambling in the Philippines

Regulator monitoring online-casinos in every possible way encourages development and implementation of mechanisms to ensure a high level of customer protection and measures to prevent fraudulent activities; it’s taken quite seriously. Companies intending to get a Philippine gambling license are carefully checked. Gamble companies must hold an account covering all user balances. Philippine licenses are...

Company registration in Czech

Czech takes a leading role in the organization of international trading operations. In addition, this jurisdiction has the status of an advanced state in terms of ease of organizing and managing commercial projects, and obtaining loan funds. That’s why, company registration in Czech is a modernized profitable solution becoming the key for an entrepreneur to...

Luxembourg payment licenses

E-payments market is constantly evolving, which leads to the emergence of new legislative provisions and norms regulating this type of activity. Firms that offer such services are subject to regulation by EU Directives and oversight by official bodies in specific jurisdictions. Payment institution license Luxembourg cover a variety of services, from providing payment infrastructure to...

Blind trust

WHAT IS A BLIND TRUST AND HOW DOES IT WORK? A “blind trust” is a fiduciary agreement in which the beneficiary of the trust is not allowed to control, manage, or even know about the assets within the trust. In such cases, the designated trustee has complete freedom to manage the blind trust. It is...

Obtaining of investment services license in Bulgaria

Our experts will help you to get your own license as quickly and effortlessly as possible, allowing you to offer on the market and provide consumers with investment services on the territory of Bulgaria. As you know, Bulgaria is a member state of the European Union, therefore, this license gives you the opportunity to offer...

Crypto taxes in Germany

Germany sets favorable tax space for individual assets in cryptocurrencies. Next, we will look at some of the most important aspects of the law governing the crypto taxes in Germany. Let’s try to find out all features of recommendations of German Federal Tax Office and Ministry of Finance for individuals, and also analyze how the...
Fill the blank:


Dreikonigstrasse, 31A, Stockerhof


Baseina street, 7


Grosvenor Gardens, 52


Lochrin Square, 1


Jacovides Tower, 5 floor


Kesklinna linnaosa, Tuukri 19


Esplanade, 7 floor


Gediminas Avenue, 44A

New York

New Rochelle, Huguenot St, 175


20 Martin Place


3 Fraser Street, #08 DUO Tower

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai


2609 Avenida da Boavista


Revaz Tabukashvili Str., N 45, area N 7