Get the Cheapest Crypto Licence in Europe and Minimise Cryptocurrency Licence Costs

If you’re in search of a European cryptocurrency licence that doesn’t cost a fortune, consider exploring jurisdictions where a fully fledged crypto regulations framework is still to be introduced. Such countries tend to refrain from charging steep licence application and supervision fees which allow crypto entrepreneurs to direct their funds to the growth of their companies. Moreover, the absence of strict regulations also means easily satisfiable eligibility requirements for obtaining a crypto authorisation.

Does that sound like a viable path for your crypto company? Read on to learn about the European jurisdictions our team highly recommends, based on a handful of essential criteria which you should pay attention to in order to situate your crypto company within the most suitable set of laws.

Fastest crypto licence to obtain in Europe

In today’s dynamic cryptocurrency market, the desire to launch a business quickly requires entrepreneurs to not only have a deep knowledge of blockchain, but also the ability to navigate the regulatory environment. The Czech Republic, with its flexible approach to cryptocurrency regulation, is one of the most attractive jurisdictions for obtaining the appropriate licence as quickly as possible. In this article, we will look at the process of obtaining a cryptocurrency licence in the Czech Republic, highlighting the main steps, requirements for founders and the timeframe for establishing a company.

Choosing the Czech Republic for obtaining a licence

The Czech Republic offers a unique combination of an accessible regulatory environment and fast licensing procedures for cryptocurrency companies. Thanks to its transparent legislative framework and support for fintech innovation, the country attracts entrepreneurs from all over the world.

Stages of obtaining a licence

1. Researching the regulatory environment. The first step is to thoroughly research Czech cryptocurrency legislation and determine the type of licence required for your business.
2. Company registration. To apply for a licence, you must have a registered legal entity in the Czech Republic. This process includes choosing a name, registering with the commercial register and opening a corporate account.
3. Preparation and submission of documentation. The next step is to prepare a complete set of documents, which may include a business plan, AML (Anti-Money Laundering) and KYC (Know Your Customer) policies, and proof of financial stability.
4. Submission of an application for a licence. The application is submitted to the relevant regulatory authority in the Czech Republic. It is important to carefully follow all instructions and requirements to speed up the review process.
5. Launch of operations. After obtaining a licence, the company can start its operations in the Czech Republic and abroad.

Requirements for founders

• Reputation: Good business reputation and no criminal record, especially in the area of financial crime.
• Financial strength: Evidence of sufficient capital to start and sustain operations.
• Professional experience: Experience in finance, preferably related to cryptocurrencies and blockchain.

Timing

The process of obtaining a cryptocurrency licence in the Czech Republic is fast and can take from a few weeks to several months, depending on the completeness and accuracy of the documentation provided.

Conclusion

The Czech Republic offers one of the most efficient and affordable environments for launching a cryptocurrency business in Europe due to its favourable regulatory climate and speedy licensing process. Compliance with all requirements and careful adherence to procedures can significantly accelerate the licensing process, allowing your business to grow successfully in the dynamically changing world of cryptocurrencies.

Cheapest crypto licence to obtain in Europe

In the context of the global focus on cryptocurrencies and blockchain technologies, the Czech Republic stands out as one of the most attractive European jurisdictions for obtaining a cryptocurrency licence with optimised costs. The Czech Republic’s attractiveness lies not only in its strategic location in the centre of Europe, but also in its flexible regulatory environment that fosters the development of innovative financial technologies. In this article we will look at how to minimise costs when obtaining a cryptocurrency licence in the Czech Republic, describing the steps of the process, the requirements for founders and the timeframe for setting up a company.

Cost-effective way of obtaining a licence

The Czech Republic offers a relatively inexpensive and efficient process for obtaining a cryptocurrency licence, making it attractive to startups and international companies looking to expand their operations in Europe. The main advantage is the transparent and predictable cost structure, including government fees and legal costs.

Steps to minimise costs

1. Detailed research of regulatory requirements. The first step is a thorough understanding of Czech cryptocurrency legislation to avoid unnecessary costs of correcting mistakes and resubmitting documents.
2. Company registration. In the Czech Republic, registering a business is a relatively simple and inexpensive process. Choosing the right form of legal entity can significantly reduce both initial and annual costs.
3. Effective documentation management. Careful preparation of the necessary documentation package, including business plan, AML and KYC policies, can help avoid additional legal costs.
4. Utilising local experts. Consulting with local legal and financial experts familiar with the process of obtaining a cryptocurrency licence in the Czech Republic can provide valuable advice on how to streamline the process.

Requirements for founders

• Business reputation: No criminal record and positive business reputation of the founders is a mandatory requirement.
• Financial Rationale: Having sufficient capital to start operations and sustain operations for the first year of operation.
• Professional Experience: Experience in the financial industry and knowledge of the cryptocurrency market and blockchain technology will be essential.

Timing

The process of obtaining a cryptocurrency licence in the Czech Republic can take from a few weeks to several months, depending on the complexity of the documentation preparation and the efficiency of the interaction with the regulatory authorities.

Conclusion

The Czech Republic offers one of the most cost-effective and expeditious ways to obtain a cryptocurrency licence in Europe. By following the above recommendations and carefully planning each step, entrepreneurs can significantly reduce the costs associated with the process, while ensuring that their business complies with all Czech legal requirements. It is important to emphasise the importance of prior analysis and the use of local experts to ensure a smooth and cost-effective licensing process.

How to Choose a Crypto Licence

While being able to obtain a cost-effective licence can be a huge advantage for a young or maturing crypto company, it’s also important to take other relevant aspects into consideration. Simply put, you have to study the laws of your potential jurisdiction very carefully for the purpose of evaluating how your crypto economic activities can be categorised within the general legislative framework, including what corporate reporting and taxes might be applicable.

This step will prevent your company from facing unnecessary challenges and facilitate an informed business strategy. If you schedule a consultation with us in the near future, our team here at Regulated United Europe (RUE) can help you to assess every legal detail and share experience-based advice.

In the meantime, take the time to learn about the three European countries – the Czech Republic, Poland and Lithuania – that can offer reputable and yet quite liberal jurisdictions within the EU for crypto entrepreneurs. They have varying authorised capital requirements, crypto registration procedures and tax environments but overall, it’s currently fairly easy to start running an authorised crypto company in one of these countries.

Crypto Licence in the Czech Republic and Poland

If licence fees are the main criteria for choosing a cryptocurrency licence for your crypto company, consider the Czech Republic and Poland – the two EU countries issuing the cheapest crypto licences in Europe and still allowing their licensees to enjoy all the benefits of being part of the EU market. The main reason for the competitive fees is the absence of a robust regulatory framework which is why the current registration prerequisites and procedures are minimal and easily implemented.

Key advantages of a Czech or Polish crypto licence:

• Employing local staff isn’t required
• A physical office within the licensing country isn’t required
• No significant requirements for minimum authorised capital
• Fast licensing process

It’s worth noting that both countries offer an equivalent of a crypto licence since this kind of authorisation is more of a simple registration and regular licensing process rather than a robust crypto licensing procedure. To receive such type of crypto company authorisation and start your business operations, you generally need to notify the local authorities and share information about the company members. That said, since both countries are members of the EU, every crypto regulatory rule must be actualised in their national legislation. Therefore, before deciding to register, take the EU’s directives of anti-money laundering and counter-terrorist financing into perspective.

Crypto License Czech Republic

The Czech financial market is generally supervised by The Czech National Bank (CNB), however, the authority doesn’t consider cryptocurrencies legal tender. They’re rather handled as commodities subject to the EU law as per the summary “Security of Internet Payments and Cryptocurrency”, published in 2018 by the CNB.

If you’re planning to start economic activities in the Czech Republic, you’ll most likely be required to follow general authorisation procedures and get one of the regular trade licences issued by the Trade Licensing Register. To apply, you’ll be asked to submit an electronic application that includes information about the company and its founders to one of the general Trade Offices in the Czech language. Should you require certified translation services, our team here at Regulated United Europe (RUE) will be happy to offer a cost-effective solution. You’ll also have to be prepared to pay a state application fee of 6,000 CZK (approx. 243 EUR) to complete your registration.

This kind of authorisation, just like any EU licence, will allow you to access the EU market, including opening a branch office in another EU country as long as you notify local authorities. Conversely, if you already possess an EU licence, there’s no need to obtain a Czech trade licence – notifying local Czech authorities of your operations in the Czech Republic will suffice.

In any case, in spite of the absence of a robust Czech regulatory framework, you shall remember to comply with the aforementioned EU-imposed anti-money laundering and counter-terrorist financing (AML/CFT) rules. They’re enforced by the Financial Analytics Office (FAU) which you have to register with for reporting purposes and which, fortunately, hasn’t introduced any hard-to-achieve registration requirements.

Take note of the following Czech AML/CFT legislation:

• The AML Act (Act No. 253/2008 Coll.) for detailed AML/CFT measures
• The AML Decree (Decree No. 281/2008 Coll.) for the requirements for corporate AML/CFT policies and procedures
• The Criminal Code (Act No. 40/2009 Coll.) for the definitions of criminal acts
• The International Sanctions Act (Act No. 69/2006 Coll.) for the specific rules for imposing international sanctions

Although the Czech Republic is known for low crypto licensing fees and a liberal approach towards the regulation of crypto companies, it certainly doesn’t mean that a crypto company can get away with not having an appropriate crypto authorisation. A crypto company operating without a licence is at risk of being labelled as fraudulent and getting a penalty of up to 500,000 CZK (approx. 20,000 EUR) as well as being forced to shut down.

Crypto License in Poland

The Polish financial market is supervised by The Polish Financial Supervision Authority (KNF) which hasn’t yet introduced any strict crypto regulatory framework. Therefore, current Polish crypto companies simply have to navigate the existing general financial and other relevant legislation. If you need to evaluate your crypto activities through the legal prism, start by scheduling a personalised consultation with our experienced team members who will be delighted to share their insights and advice.

But before you consider the Polish jurisdiction, take a look at several key aspects pertinent to crypto business regulations. Since Poland has also transposed the EU’s AML/CFT directives into its national legislation, Polish crypto companies are required to register with and report to the General Inspector of Financial Information who is responsible for enforcing the Polish AML/CFT laws for the purpose of mitigating and eliminating risks related to financial crime.

If you’re prepared to meet AML/CFT-related requirements, your journey to obtaining a Polish crypto licence must include registration with The Tax Administration Chamber which maintains the Register of Virtual Currencies created to ensure adherence to AML/CFT regulations. It’s a legal prerequisite and a failure to fulfil it  will result in receiving a fine of 100,000 PLN (approx. 21,000 EUR).

To apply for the Register of Virtual Currencies, you should primarily have your company documents at hand, and pay the stamp duty of 616 PLN (approx. 130 EUR). The application process takes around two weeks and once your company is registered, you won’t have to worry about having to pay supervision fees which is a huge relief.

Before you decide to avail of the advantages the two countries have to offer, note that the Czech Republic and Poland are currently working on the legislation that will shape their crypto regulatory frameworks in the future which indicates that at some point every licensee will face much stricter requirements – just like in Estonia or other European countries where new crypto regulations have forced crypto companies to either adjust their operational structures or look for alternative jurisdictions. Of course, if you’re determined to use this time to grow your crypto company in the direction of more demanding conditions, this isn’t a threat to you. On the contrary, it can be turned into a significant advantage allowing you to gradually prepare for what’s ahead in most modern jurisdictions.

Crypto Licence in Lithuania

Lithuania is one of the most attractive European jurisdictions for cryptocurrency businesses for various reasons, and cost-friendly licences are among them. While some more robust European crypto regulatory frameworks impose steep licence application and supervision fees, Lithuanian authorities don’t ask for any of that which is a considerable advantage.

The year 2022 has been a year of change for Lithuanian cryptocurrency businesses as the Lithuanian Law on the Prevention of Money Laundering and Terrorist Financing has been amended to improve the current crypto regulatory framework. For instance, you should know that Lithuanian crypto licensees are required to have minimum authorised capital of 125,000 EUR. Some of the changes have already come into effect, and others will enter into force in 2023-2025. This is an indication that the regulatory framework is up-to-date and won’t require significant amendments in the near future which can provide crypto entrepreneurs with a much-needed assurance of stable regulatory ground for business development.

In Lithuania, crypto licences are issued by The Bank of Lithuania which also supervises authorised crypto businesses, as well as offers valuable initiatives for blockchain-based business development.

The authority issues two types of crypto licences:

• Crypto Wallet Exchange Licence which enables crypto companies to provide and administer crypto wallets on behalf of their customers
• Crypto Exchange Licence which allows crypto companies to provide cryptocurrency-to-fiat-money exchange services and vice versa, as well as cryptocurrency-to-cryptocurrency exchange services

For AML/CFT purposes, The Financial Crime Investigation Service (FNTT) supervises Lithuanian crypto businesses through the collection of reports and other means. Due to the high-quality supervision, Lithuania is considered a safe business environment among investors and ranks 9th among the lowest-risk jurisdictions. This feature can positively improve your company’s image on the international scene.

Among several undeniable advantages of the Lithuanian crypto licence is a publicly available list of all licensed Lithuanian cryptocurrency companies, maintained by the State Enterprise Centre of Registers. It should become available from the 1st of February of 2023 and will allow every business partner, investor, client and other interested parties to verify the licence of a specific crypto company which will further increase transparency and trust within the industry.

If any of these countries interest you and you wish to delve deeper into the legislative framework and registration procedures, or if you’re not sure which one is the most suitable for your crypto business, don’t hesitate to contact our highly experienced and insightful team.

We’ll be delighted to provide you with tailored, value-added support in registering your cryptocurrency company in one of these favourable jurisdictions, including the preparation and submission of required documents. From the very start of the process, you’ll be backed with expertise in the swiftly evolving AML/CFT legislation, crypto licensing, corporate reporting and tax advice. Contact us now to schedule a personalised consultation.

Best countries in Europe for Crypto investor

In recent years, Europe has become one of the leading regions for investing in cryptocurrencies. Among all countries, Lithuania and the Czech Republic stand out as particularly attractive for crypto investors. The reasons for their popularity lie in their cryptocurrency-friendly policies, developed financial infrastructure and favourable tax regimes.

Lithuania: Frontrunner in Cryptoinnovation

Lithuania has long been known for its positive attitude towards technology and innovation. The country offers one of the friendliest cryptocurrency environments in Europe thanks to:

• Progressive regulation: Lithuanian regulators are actively working on creating clear rules for cryptocurrency companies, which facilitates their functioning and development.
• Tax incentives: Lithuania offers attractive tax conditions for crypto investors. For example, profits from cryptocurrency trading are often taxed at a lower rate than other types of income.
• Support for startups: The country actively supports cryptocurrency startups by offering them various funding and mentorship programmes.

Czech Republic: Stability and Innovation

The Czech Republic also represents one of the most attractive countries for crypto investors in Europe, thanks to:

• Stable economy: The high level of economic stability makes the Czech Republic a safe investment destination.
• Crypto-friendly environment: There are many cryptocurrency exchanges and services in the country, making it one of the most accessible countries for crypto trading.
• Tax advantages: While the Czech Republic’s tax policy may be less attractive than Lithuania’s, it still offers certain benefits for crypto investors, such as the ability to avoid paying capital gains tax on long-term holdings.

Conclusion

Lithuania and the Czech Republic are two of the most attractive countries in Europe for cryptocurrency investors. They offer a favourable regulatory environment, tax incentives and support for innovation, making them ideal locations for those looking for opportunities in the cryptocurrency sector. While Lithuania attracts with its progressive regulations and support for startups, the Czech Republic offers stability and developed infrastructure for crypto investments. Both countries demonstrate how a positive attitude towards new technologies and flexible regulation can contribute to the growth of the crypto industry.

Best Countries For Crypto Businesses

In the last decade, cryptocurrencies and blockchain technologies have revolutionised the global financial system. This has attracted the attention of entrepreneurs looking for optimal conditions for developing their crypto business. Among European countries, Lithuania and the Czech Republic stand out as particularly favourable for such companies. These countries offer a combination of progressive regulation, a supportive ecosystem and attractive economic conditions.

Lithuania: Platform for Innovation in Cryptospace

Lithuania has attracted the attention of the global crypto community due to its openness to new technologies and progressive approach to the regulation of cryptocurrencies and blockchain projects:

• Accessible regulation: The Lithuanian government has developed a clear and transparent regulatory framework for crypto businesses, making it easier for companies to obtain licences and do business in the country.
• Tax incentives: Lithuania offers attractive tax conditions to cryptocurrency companies, including incentives for startups and investments in blockchain projects.
• Technological support: The country actively supports crypto-initiatives and invests in technological development, providing a favourable environment for innovation and growth.

Czech Republic: Reliable Basis for Crypto-Enterprises

The Czech Republic represents another attractive location for crypto businesses in Europe due to its stable economic climate and supportive regulation:

• Stable economic environment: The Czech Republic is known for its stable economy and high level of financial security, making it a safe place to do business.
• Friendly regulation: Despite strict EU regulations, the Czech Republic has found ways to balance the need for regulation with support for innovation, creating a favourable environment for crypto-enterprises.
• Active crypto community: There is an active and supportive crypto community in the Czech Republic, offering many networking opportunities and resources for startups and entrepreneurs.

Conclusion

Lithuania and the Czech Republic are at the forefront of Europe as attractive centres for crypto businesses, offering favourable conditions for growth and development in this rapidly changing industry. They provide crypto businesses with a stable economic environment, affordable regulation and support for innovation. These factors make Lithuania and the Czech Republic ideal locations for those seeking to develop their crypto business in a favourable and supportive environment.