Crypto license in the Czech Republic under MiCA standards
The Czech Republic is considered one of the most attractive jurisdictions in Europe for obtaining a crypto license. With the implementation of the pan-European MiCA (Markets in Crypto-Assets) regulation, the country has introduced clear legal definitions for VASPs (Virtual Asset Service Providers), enabling companies to develop crypto businesses within a secure legal framework that applies throughout the EU.
The license offers legal certainty under European regulation and allows businesses to take advantage of the Czech Republic’s favorable business environment and strategic geographic location. Once authorized, a company can provide a wide range of services: virtual currency exchange, cryptocurrency wallets, and payment services – all within a regulated and transparent structure.
The Czech regulatory authority supports the development of virtual assets by offering a simplified licensing process and a stable regulatory environment. This paves the way for full-scale operations in the European market, strengthens trust from banking institutions, and allows companies to offer users secure online and offline solutions for handling virtual assets.
Key features of the crypto license:
- compliance with EU standards and Czech national legislation (including MiCA);
- legal ability to operate as a cryptocurrency exchange and VASP;
- support for business registration and operational scaling;
- access to the pan-European market with cross-border potential;
- emphasis on regulation, AML compliance, and oversight by central authorities.
Regulated activities under the Czech crypto license
The Czech Republic grants cryptocurrency licenses that allow companies to conduct a wide range of activities in the field of cryptocurrencies and virtual assets. All operations are carried out within the framework of local jurisdiction and the European Union’s regulatory framework. This type of license becomes a vital tool for business expansion and entry into the EU market, especially for companies engaged in crypto exchange and related services.
Main activities covered by the Czech crypto license:
- providing services in the cryptocurrency and virtual asset space in accordance with both local and pan-European regulations;
- legally operating on behalf of clients, including the launch or expansion of a cryptocurrency exchange service;
- supporting operational activities within the Czech and EU regulatory framework.
| Activity | Covered by the Crypto License? |
| Cryptocurrency exchange | Yes |
| Cryptocurrency trading | Yes |
| Fiat-to-crypto and crypto-to-fiat conversion | Yes |
| Virtual asset wallet services | Yes |
| Over-the-counter (OTC) trading | Yes |
| Cross-border payments and money transfers | Yes |
| Payment gateway integration | Yes |
| Peer-to-peer (P2P) cryptocurrency exchange | Yes |
| Virtual asset management (with approval) | Yes |
To maintain the license, companies are required to strictly comply with regulatory obligations. The key requirements include:
- KYC (Know Your Customer) – client identity verification
- AML (Anti-Money Laundering) – measures to prevent money laundering
- Risk management and transaction monitoring
These measures are aimed at ensuring the security of the crypto ecosystem, as well as protecting the interests of clients and investors.
In addition, with a valid license, a company may apply to offer additional innovative services such as:
- token listing;
- IEO (Initial Exchange Offering);
- cryptocurrency asset custody (crypto custody).
Advantages of obtaining a crypto license in the Czech Republic
A crypto license provides companies with significant advantages for operating legally and sustainably within the EU’s regulated virtual asset market. Thanks to legislative harmonization under the MiCA (Markets in Crypto-Assets Regulation), the Czech Republic offers a secure, clear, and consistent approach to crypto business.
Key advantages:
- Regulatory clarity. The Czech Republic adheres to the EU-wide MiCA regulation, providing licensed crypto companies with clear and consistent rules. This reduces legal uncertainty for market participants and allows for a smoother, more predictable market entry.
- Access to the EU market. A license obtained in Czechia grants “passporting” rights, allowing cryptocurrency exchange and virtual asset services to be offered across all EU member states.
- Favorable business environment. The country offers competitive corporate tax rates, simplified company registration procedures, and strong legal protection for investors and service providers.
- Client protection. Standardized documentation requirements and strict AML/KYC obligations significantly increase trust from clients, banks, and partners, helping create a regulated and secure environment for both retail and institutional clients.
- Developed financial infrastructure. The financial system includes a stable banking sector, access to EU-wide payment systems, and active participation in the EU fintech ecosystem.
- Innovation support. The government actively promotes the development of fintech and blockchain initiatives, offering various state support programs for startups and virtual asset companies.
| Advantage | Description |
| Regulatory clarity | Aligned with EU MiCA standards |
| EU passport | Access to the entire European market |
| Tax efficiency | Competitive corporate tax rates |
| Consumer protection | Strong AML/KYC and compliance standards |
| Access to banking | Well-established financial and payment infrastructure |
| Innovative ecosystem | Government support for fintech and blockchain projects |
Czechia is an excellent choice for companies seeking to combine regulatory compliance with market expansion across Europe.
Comparison of the Czech Republic and other jurisdictions for obtaining a crypto license
When selecting a jurisdiction for obtaining a crypto license, it is essential to assess and compare key factors such as the regulatory environment, cost of licensing and maintenance, compliance obligations, and market access. The Czech Republic stands out favorably among leading crypto hubs in Europe and globally.
Below is a comparative overview of the main characteristics:
| Jurisdiction | License Type | Regulatory Authority | License Fees | Launch Time | Compliance Burden | Market Access | Access to Banking |
| Czech Republic | MiCA | Czech CNB and EU regulators | Moderate | 3–6 months | Medium | Entire EU | Good |
| Germany | BaFin Crypto l | BaFin | High | 6–9 months | High | Entire EU | Strong |
| Malta | Virtual Financial Assets | MFSA | Moderate | 4–6 months | Medium–High | Entire EU | Moderate |
| Lithuania | VASP (MiCA) | Bank of Lithuania | Low | 1–3 months | Medium | Entire EU | Good |
| Switzerland | FINMA | FINMA | High | 4–8 months | High | International | Excellent |
| United Kingdom | FCA Registration | FCA | Moderate | 4–8 months | High | UK and limited EU | Good |
| USA | State and Federal Licenses | FinCEN and State Agencies | Very High | 6–18 months | Very High | US only | Complex |
The Czech Republic offers an open and cryptocurrency-friendly licensing regime with reasonable acquisition costs and a balanced regulatory burden for companies targeting the EU economic area.
Comparison with other jurisdictions:
- Unlike Germany, the licensing process in the Czech Republic is faster and more cost-effective, while still granting access to the same European regulatory space under EU regulation.
- Compared to Lithuania, the Czech Republic has a more developed banking infrastructure, although the time and cost to obtain a license in Lithuania may be lower.
- Switzerland remains a global hub with broad access to international financial ecosystem, but its licensing process is more complex and expensive.
- The United Kingdom and the United States are characterized by high compliance costs and fragmented regulatory environments, which limit stable access to the EU business environment.
The new crypto license in the Czech Republic enables companies to enter the large EU market within a reasonable timeframe and with controlled expenses, under the harmonized MiCA regulation, making the Czech Republic an attractive jurisdiction for launching a cryptocurrency business.
Requirements for obtaining a crypto license in the Czech Republic
To apply for a crypto license in the Czech Republic under the MiCA (Markets in Crypto-Assets) regulation, applicants must meet a set of legal, operational, and compliance criteria established by the Czech National Bank (CNB).
These requirements are based on the EU’s best regulatory practices and are designed to ensure that licensed companies provide safe and reliable services in the field of cryptocurrencies and virtual assets.
| Requirement | Description |
| Legal entity | Establishment of a Czech legal entity (e.g., a.s. or s.r.o.) registered in the Commercial Register |
| Capital requirements | Minimum share capital depends on the license type; typically €125,000 or more for a full VASP license |
| Qualified management | Appointment of “fit and proper” directors and compliance officers with sufficient experience |
| AML/KYC policies | Comprehensive anti-money laundering and know-your-customer procedures aligned with EU standards |
| IT security and infrastructure | Reliable IT systems ensuring data protection, transaction security, and cyber resilience |
| Risk management | Internal controls, audit mechanisms, and regular reporting to supervisory authorities |
| Business plan | Submission of a detailed business plan, including service scope, market analysis, and compliance strategy |
| Reporting and transparency | Ongoing financial reporting, transaction monitoring, and disclosure of beneficial ownership |
| Physical presence | Office or operational presence in the Czech Republic to demonstrate substance and regulatory compliance |
Key considerations for obtaining a crypto license in the Czech Republic
When preparing for licensing in the Czech Republic, the following key requirements and regulatory expectations must be taken into account:
- Providers of custody and brokerage services may be subject to stricter capital and compliance requirements.
- All shareholders, directors, and key personnel must undergo a fit-and-proper check and due diligence review.
- The Czech National Bank (CNB) expects evidence that the applicant is capable of fully operating and fulfilling established regulatory obligations.
- The company is required to appoint a local compliance officer responsible for overseeing AML/KYC policies and procedures, and acting as the main point of contact with the CNB.
Registration of a crypto company in the Czech Republic: Steps and timeline
The process of obtaining a cryptocurrency license in the Czech Republic is carried out in stages and requires thorough preparation as well as close cooperation with regulatory authorities, primarily the CNB.
Following each step carefully enables the company to achieve full compliance with the MiCA, which is applicable across the European Union, and to operate legally and transparently.
| Stage | Description | Estimated duration |
| 1. Preliminary consultation | Engagement with legal advisors and the CNB to understand licensing requirements and prepare initial documentation | 2-4 weeks |
| 2. Company registration | Establishment of a legal entity in Czechia, fulfillment of capital and registration requirements | 2-6 weeks |
| 3. Documentation preparation | Drafting of a comprehensive business plan, AML/KYC policies, IT security protocols, and compliance systems | 4-8 weeks |
| 4. License application submission | Submission of the official application with all supporting documents and payment of relevant fees | – |
| 5. Regulatory feview | CNB reviews the application, may request additional information, conduct interviews or site visits | 3-6 months |
| 6. Approval and license issuance | Upon fulfillment of all regulatory conditions, CNB issues an authorization to operate as a crypto service provider | 1-2 weeks |
| 7. Post-licensing obligations | Ongoing AML oversight, reporting, auditing, and regulatory updates to maintain the license | Continuous |
Factors influencing the timeline for obtaining a crypto license in the Czech Republic
The duration of the licensing process is directly affected by the following key elements:
- The completeness and quality of the submitted application and accompanying compliance documentation
- The experience and qualifications of the management team and compliance officers
- The complexity of the crypto services the company plans to offer
- The speed and responsiveness in addressing inquiries from the Czech National Bank (CNB) during the review process
The average timeframe for obtaining a cryptocurrency license ranges from 4 to 8 months, depending on the company’s level of preparation and the current workload of the regulator.
This phase is critically important for all companies intending to legally provide cryptocurrency exchange, custody, and other services under Czech jurisdiction and within the European Union market.
Taxation of licensed crypto companies in the Czech Republic
Crypto companies licensed in the Czech Republic operate within a stable and transparent tax system that aligns with EU principles.
The applicable framework is designed to support the growth of the virtual asset market while ensuring full compliance with regulations – both nationally and internationally.
Key tax features:
| Type of tax | Rate / notes |
| Corporate income | 19% flat rate on taxable profits |
| Value-added (VAT) | Most cryptocurrency services are generally exempt under EU VAT directives |
| Personal income | Progressive rates up to 23% for resident employees and managers |
| Capital gains | Taxed as regular income for individuals; companies are generally exempt |
| Withholding | No withholding on dividends paid to foreign shareholders under most DTTs |
| Other | No specific taxes on cryptocurrency transactions; standard tax rules apply |
Tax advantages:
- Transparent corporate tax system. The Czech Republic applies a unified corporate income rate of 19%, which is lower than in many other EU countries. This makes the overall burden more favorable and encourages crypto businesses to establish entities in the country.
- VAT exemption. Many cryptocurrency exchange operations and virtual asset transactions are exempt from VAT under the EU VAT Directive, reducing operational tax costs.
- No withholding tax. Dividends or interest paid to foreign shareholders are generally not subject to withholding tax, thanks to the Republic’s extensive network of double taxation treaties.
- Capital gains tax exemption. Companies may benefit from favorable capital gains tax treatment, which is particularly advantageous when managing income from crypto trading or CGA (crypto graded assets).
Tax reporting and compliance obligations:
- Crypto companies must maintain accurate accounting records, file corporate tax returns, and report regularly to the Tax Administration.
- Annual audits are required – conducted by independent auditors and regulatory authorities. Regular declarations are also mandatory.
- Companies must demonstrate strong substance, including a local office and staff, to qualify for tax benefits and avoid negative consequences under international rules.
Tax rates for cryptocurrency companies in the Czech Republic
| Type of tax | Rate |
| Corporate Income | 19% |
| VAT | Exempt for cryptocurrency-related services |
| Personal Income | Up to 23% |
| Capital Gains | Exempt (for companies) |
| Withholding | 0% |
The Czech Republic offers a competitive and stable tax and legal framework for crypto businesses seeking to apply for and operate licensed virtual asset services within an EU jurisdiction.
Key facts about the crypto license in the Czech Republic
| Category | Details |
| Regulator | Czech National Bank (CNB) |
| Legal framework | Markets in Crypto-Assets Regulation, effective across the EU |
| License timeline | 4–8 months |
| Core services | Exchange, custody, IEO, token listing, VASP services |
| Requirements | Documentation, due diligence, local compliance officer, AML/KYC |
| Special conditions | Stricter rules for custody and brokerage service providers |
| Corporate | 19% flat rate |
| Benefits | VAT exemption, no withholding tax, CGT relief |
| OIbligations | Reporting, audit, local office and staff |
| Market access | Passporting across all EU countries |
A trusted licensing team of experts
Behind every crypto license stands a team of experienced professionals. Our lawyers, tax advisors, and compliance specialists support clients at every stage – from choosing the right jurisdiction to obtaining the license and ensuring full regulatory compliance. We combine deep knowledge of European legislation, hands-on experience with the CNB, and a track record of successfully completed cases.
With us, you work with professionals who understand the nuances of the crypto market and know how to act precisely, efficiently, and in your best interest.
Nikolai Timofejev Expert with 15 years of experience in FinTech, payments, and business strategy.
Oleksii Kindratenko Expert in company registration, financial licenses, AML and tax consulting.
Eugeniu Bevziuc International business consultant with experience in company setup, remote work, and multilingual communication.
From first inquiry to license approval – We’re with you every step of the way.
Take action with the support of an experienced team.
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Frequently asked questions about the crypto license in the Czech Republic
1. What is a crypto licence in the Czech Republic and who issues it?
A crypto licence is an official authorization to provide virtual asset services and operate a cryptocurrency exchange. It is issued under the supervision of the Czech National Bank (CNB) in accordance with the EU MiCA regulation.
2. What types of activities are permitted under the crypto licence?
It covers services such as cryptocurrency exchange, custody, trading, brokerage and payment operations, token issuance, digital wallets, and advisory services related to virtual assets.
3. How long does it take to obtain a licence?
On average, the process takes 3 to 6 months, depending on the quality of the submitted documentation and the regulator’s review timeline.
4. How much share capital is required?
The minimum capital depends on the type of licence and generally ranges from €50,000 to €125,000, in line with MiCA requirements.
5. Is a local office and staff required?
Yes, economic substance is required – a physical office and local employees must be present.
6. Can a foreigner own 100% of a crypto company in the Czech Republic?
Yes, 100% foreign ownership is allowed – the Czech Republic is suitable for international cryptocurrency business.
7. What are the compliance obligations for licensed companies?
Companies must fully comply with AML/KYC regulations, monitor transactions, submit regular reports to the CNB, and fulfill obligations related to risk management and cybersecurity.
8. How is income from cryptocurrency activities taxed?
Profits of licensed companies are subject to 19% corporate income tax. Some unregulated services may qualify for VAT and capital gains tax exemptions.
9. Does a license in the Czech Republic provide access to the EU market?
Yes, under MiCA, a licensed company can passport its services across the EU.
10. What are the consequences of operating without an authorization?
Unlicensed activity may result in fines, criminal liability, business suspension, and serious reputational risks.
