Crypto license in the Czech Republic: what you need to know
The Czech National Bank (CNB) has a liberal attitude toward cryptocurrency. It treats Bitcoin and other currencies based on blockchain technology not as money, but as a commodity. Nevertheless, if you work professionally with digital currencies, it's a different scenario, and it is necessary to obtain a crypto license in the Czech Republic.
Features of the Czech cryptolicense
The Czech cryptolicense allows not only to engage in the storage and exchange of cryptocurrency but also to issue new crypto coins. Before the license is issued, the regulator carefully checks the applicant, confirming the reliability of the company. It grants permission to run business in the Czech Republic and the other EU countries without additional permits.
Types of cryptolicenses
If your company wants to exchange cryptocurrencies to fiat money and vice versa, create processing centers, and open and maintain user accounts, it's required to obtain an SPI (Small Payment Institution) license.
SEMI (Small E-money Institution) or EMI (Electronic Money Institution) licenses are for companies planning to issue electronic money. These crypto licenses give the right to issue the new coins. Their supply should be worth no more than €5 million per month. It falls under the regulator's restrictions if SEMI or EMI provides financial payment services. In this case, the company can issue electronic funds with a limit of €3 million per month.
Who need to have a cryptolicense
The Czech National Bank recommends applying for a cryptocurrency license in the following cases.
It is necessary to get a permit if you plan to provide crypto investment services, invest your relatives’ money or receive remuneration from the customers in cryptocurrency. You don't need a license, if you work with a small number of people. It is enough to register on the regulator's list, but your possibilities will be limited.
If you want to sell services to the public, you must obtain a license to run a self-managed or non-self-managed investment fund. Depending on the type of permission, you will be able to offer your services either to a wide audience or only to professional investors.
If you have set up an exchange to trade digital currency, a cryptocurrency license in Czech Republic 2022 is mandatory. You must get one if you want your customers to be able to deposit, withdraw, and transfer funds in a safe and legal way.
As for the other exchange services, the Czech National Bank does not comment on them, but it does not mean that you do not need a license. We recommend that you consult with our experts to analyze your particular case.
Can the existing CNB license holders additionally trade cryptocurrency
Depending on the founding documents, your company may be eligible to work with cryptocurrencies or it may need to have additional permissions. We recommend contacting our experts who will analyze all your documents and tell you whether you need to get a crypto license or not.
How to get a cryptolicense in the Czech Republic
To get a cryptolicense, you need to register a company. The staff should include a director, an accountant, as well as an employee who can prove their qualifications in the field of financial services.
You can get a cryptolicense in the Czech Republic remotely, with the help of an employee of our company. The procedure is as follows:
- Preparation of the documents for opening a firm. We will need to collect the information regarding the owners, shareholders, directors, etc. A clean criminal record for fraud is required.
- Conclusion of an office lease agreement. It must be a real office.
- Company registration.
- Submitting the application to the CNB for a crypto license.
- Opening a bank account after getting permission. CZK 25,000 must be deposited there, and this money can then be used to develop the company.
- Hiring an employee who will monitor fraudulent transactions and transfers aimed at money laundering.
Obtaining a cryptolicense takes about 4 months if you gather all the documents and do the paperwork correctly. It includes the time it takes to register a firm, which typically takes 3 weeks.
How to get a crypto license in the Czech Republic quickly
If you want to engage in cryptocurrency activities in the Czech Republic, contact IT-OFFSHORE experts.