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

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

Get the Cheapest Crypto Licence in Europe and Minimise Cryptocurrency Licence CostsIf 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.

Cheapest Crypto Licence in Europe

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

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

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

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.

FREQUENTLY ASKED QUESTIONS

Consider jurisdictions where a fully fledged crypto regulations framework has yet to be introduced if you're looking for a European cryptocurrency licence that doesn't cost a fortune. Crypto entrepreneurs tend to invest their funds in their companies when such countries don't charge steep license fees.

Furthermore, a crypto authorisation can be easily obtained since there are no strict regulations.

Young or maturing crypto companies can gain a lot of benefit from being able to obtain a cost-effective license, but other aspects need to be considered. For this reason, you should carefully study the laws of the jurisdictions in which you are considering investing in order to determine whether crypto-economic activities can be classified within their general laws, including what corporate reporting and taxes might apply.

A business strategy that is based on informed information will prevent your company from facing unnecessary challenges.Regulated United Europe (RUE) can provide you with experience-based legal advice and guidance through a consultation in the near future.

Crypto entrepreneurs in the EU can find reputable and yet quite liberal jurisdictions in the Czech Republic, Poland, and Lithuania. The regulations and procedures for crypto registration and taxation vary from one country to another, but overall, starting a crypto business in one of them is relatively easy.

The Czech Republic and Poland are the EU countries that issue the cheapest crypto licenses in Europe, but still allow their licensees to enjoy all of the benefits of being a member of the EU market, if license fees are the main criteria for choosing a cryptocurrency licence for your crypto company.

Currently, there are no robust regulatory frameworks, so the registration prerequisites and procedures are minimal and straightforward.

Crypto licenses issued in the Czech Republic or Poland have the following advantages:

  • It is not necessary to hire local employees
  • Licensing countries do not require physical offices
  • Minimum authorised capital is not required
  • The licensing process is fast

As far as crypto licensing is concerned, both countries offer a simple registration and regular licensing procedure rather than a robust crypto licensing procedure. It is generally required that you notify the local authorities and share information about the company members in order to receive such a type of crypto company authorisation and begin your business operations.

The national legislation in both countries must, however, incorporate each crypto regulation, since they are both EU members. It is therefore important to take into account the EU's anti-money laundering and counter-terrorist financing directives before deciding whether to register.

Generally, the Czech National Bank (CNB) supervises the Czech financial market, but cryptocurrencies do not qualify as legal tender. The CNB's 2018 summary titled "Security of Internet Payments and Cryptocurrencies" describes them as commodities subject to EU law.

The Trade Licensing Register will issue you one of the regular trade licenses if you plan to start economic activities in the Czech Republic. To apply, you can submit an electronic application to one of the Czech Trade Offices that includes information about your company and its founders.

To complete your registration, you will have to pay 6,000 CZK (approx. 243 EUR).

As long as you notify local authorities, you will be able to access the EU market through this kind of authorization, just like any EU licence. Furthermore, if you already hold a Czech trade license, you don't need to obtain a Czech trade licence - you will simply need to notify the local Czech authorities that you are operating in the Czech Republic.

No matter what, you must comply with the aforementioned EU-imposed anti-money laundering and counter-terrorist financing (AML/CFT) rules despite the absence of a robust Czech regulatory framework. For reporting purposes, you have to register with the Financial Analytics Office (FAU), which, fortunately, does not have any hard-to-meet registration requirements.

AML/CFT laws in the Czech Republic include the following:

  • 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

 

Despite low crypto licensing fees and a liberal approach to crypto company regulation in the Czech Republic, a crypto company cannot get away without an appropriate crypto authorisation. Those who operate crypto companies without a license risk being labeled fraudulent and getting fines as high as 500,000 CZK (around 20,000 EUR).

A strict crypto regulatory framework has not yet been introduced by the Polish Financial Supervision Authority (KNF).The current Polish crypto companies must therefore navigate their way through the existing general financial and other relevant legislation. Our experienced team members will be happy to share their insights and advice if you need to evaluate your crypto activities through a legal lens.

Be sure to consider several key aspects relevant to crypto business regulation before you consider the Polish jurisdiction.In addition to translating the EU's AML/CFT directives into Polish law, Polish crypto companies are required to register and report to the General Inspector of Financial Information, whose mission is to enforce the Polish AML/CFT laws in order to reduce and eliminate financial crime risks.

You must register with The Tax Administration Chamber for a Polish crypto license if you are committed to adhering to AML/CFT regulations. The Tax Administration Chamber maintains the Register of Virtual Currencies. In the event that this requirement is not met, you will be fined 100,000 PLN (approximately 21,000 EUR).

You must have your company documents at hand and pay the stamp duty of 616 PLN (approximately 130 EUR) when applying to the Register of Virtual Currencies. Once your company is registered, you won't have to worry about paying supervision fees since the application process takes around two weeks.

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.

You don't need to worry about this if you're determined to use this time to grow your company toward more demanding conditions. Instead, in most modern jurisdictions, it can be viewed as a major advantage, allowing you to gradually prepare for the challenges ahead.

Lithuanian cryptocurrency businesses have experienced a year of change in 2022 with the amendment of the Law on the Prevention of Money Laundering and Terrorist Financing to improve the current regulatory framework. Crypto licensees in Lithuania must, for instance, have 125,000 EUR of authorised capital.

There are some changes that have already taken effect, and others that will go into effect between 2023 and 2025. A stable regulatory environment can provide crypto entrepreneurs with a much-needed assurance that their business is developing on stable ground, indicating that the regulatory framework is up-to-date.

Licensing for crypto businesses in Lithuania is overseen by The Bank of Lithuania, which also provides business development initiatives focused on blockchains.

 

Crypto licenses are issued in two types by the authority:

  • Licence for providing and administering cryptocurrency wallets on behalf of crypto companies
  • In addition to providing cryptocurrency-to-fiat-money exchanges, crypto companies can also provide cryptocurrency-to-cryptocurrency exchanges

 

In order to ensure anti-money laundering and counter-terrorist financing compliance, the Financial Crime Investigation Service (FNTT) supervises Lithuanian crypto businesses through the collection of reports and other means. A high-quality supervisory system makes Lithuania one of the lowest-risk jurisdictions among investors. Your company's international image can be positively improved by this feature.

The State Enterprise Centre of Registers maintains a public list of all Lithuanian cryptocurrency companies with a Lithuanian crypto licence, among other undeniable advantages. Business partners, investors, clients and other interested parties can verify the licence of a specific crypto company starting February 1, 2023. This will increase transparency and trust within the cryptocurrency industry.

RUE customer support team

Milana

Milana

“Hi, if you are looking to start your project, or you still have some concerns, you can definitely reach out to me for comprehensive assistance. Contact me and let’s start your business venture.”

Sheyla

“Hello, I’m Sheyla, ready to help with your business ventures in Europe and beyond. Whether in international markets or exploring opportunities abroad, I offer guidance and support. Feel free to contact me!”

Sheyla
Diana

Diana

“Hello, my name is Diana and I specialise in assisting clients in many questions. Contact me and I will be able to provide you efficient support in your request.”

Polina

“Hello, my name is Polina. I will be happy to provide you with the necessary information to launch your project in the chosen jurisdiction – contact me for more information!”

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CONTACT US

At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.

Company in Lithuania UAB

Registration number: 304377400
Anno: 30.08.2016
Phone: +370 661 75988
Email: [email protected]
Address: Lvovo g. 25 – 702, 7th floor, Vilnius,
09320, Lithuania

Company in Poland Sp. z o.o

Registration number: 38421992700000
Anno: 28.08.2019
Phone: +48 50 633 5087
Email: [email protected]
Address: Twarda 18, 15th floor, Warsaw, 00-824, Poland

Company in Czech Republic s.r.o.

Registration number: 08620563
Anno: 21.10.2019
Phone: +420 775 524 175
Email:  [email protected]
Address: Na Perštýně 342/1, Staré Město, 110 00 Prague

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