Crypto Regulation in Czech Republic 2025

For AML/CFT purposes, the following subjects are supervised by the Financial Analytics Office – FAU. The authority closely cooperates with the Czech National Bank (CNB) responsible for the general supervision of the financial market in the Czech Republic. Other national regulatory authorities include the Czech Inspection Authority and the Ministry of Finance.

CNB does not consider cryptocurrencies to be a legal tender but rather classifies them as commodities. It has its legal basis in the already standing legislation that led to the very conclusion that crypto data stored on blockchain does not constitute claims denominated in traditional national currency issued by a central bank, credit institutions, or other payment service providers. Article 4(1) of the Payment System Act states that cryptocurrencies are not viewed as electronic money. According to Article 2(1)(c) of the Payment System Act, they also do not represent funds.

AML/CFT LEGISLATION IN CZECH REPUBLIC

The most significant legislation regarding crypto firms in the Czech Republic has been from the EU. According to the security summary of Internet payments and cryptocurrency, published in 2018 by CNB, all such firms operating in the Czech Republic are obliged to adhere to EU legislation.

Although crypto activities in the Czech Republic are largely unregulated, the authorities have maintained transparency as a key operational principle by transposing the 4AMLD, the Fifth Anti-Money Laundering Directive (5AMLD), and the Sixth Anti-Money Laundering Directive (6AMLD), which obliges cryptocurrency exchanges and crypto purse providers to apply strict internal AML/CFT procedures. These directives address standard due diligence, information gathering, recording and retention, AML/CFT risk assessment, ultimate beneficial ownership, and reporting of suspicious transactions; perform customer transactions and apply enhanced customer due diligence for customers resident in high-risk countries.

In fact, national authorities have gone even further, covering a wider range of economic activities related to cryptography. It follows that the businesses to which AML/CFT applies are those trading, storing, managing, or mediating the purchase or sale of virtual currencies, or offering other cryptography-related services. In this context, virtual currency is defined as a digital unit that does not fall into the category of fiat money but is still accepted as a means of payment for products and services by persons who are not issuers of the unit.

The following anti-money laundering/terrorist financing laws apply to companies involved in crypto-related economic activities in the Czech Republic:

• AML Act (Act 253/2008 Coll.) sets the principles of the AML/CFT.
• Money Laundering Ordinance (Decree No 281/2008 Coll.) sets requirements for corporate policy and procedures in the area of combating money laundering/terrorist financing.
• Criminal Code (Law No. 40/2009 Coll.) defines criminal acts.
• Act on International Sanctions (Act No. 69/2006 Coll.), which stipulates the conditions under which international sanctions are imposed.

To comply with the AML/CFT regulations, crypto companies shall undertake the following:

• Gathering and processing disclosure of ultimate beneficiaries (owners DOE) of the companies/institutions who are originators of transactions.
• Reporting of suspicious transactions and customers.
• Drawing up reports, if necessary, at the request of authorities.
• Be ready to share information with regard to cross-border transfers.

Following the Directives of the EU, their transposition into the law system of the Czech Republic requires that every crypto company collects at least the following information from their customers to conduct the procedures of KYC:

• Natural persons – name, number of birth certificate, date and place of birth, address of residence, nationality, and in case of a person with business, name of the company, business address, and information on corporate identity.
• Companies: company name, address of headquarters, identification data, including data of beneficiaries.
• Institutions without legal personality: denomination, identity of the administrator or equivalent.

Failure to comply with AML/CFT obligations/requirements is therefore a crime and hence punishable with such measures as the termination of activity, expropriation of property, fine, and publication of judgment. The measure required in law would depend upon the particular prudent consideration of the nature of the violation and the type of person responsible.

Advantages

CRYPTO COMPANY FORMATION IN CZECH REPUBLIC in 2025

First, of course, a license requires a company to be established in the Czech Republic. One of the most common forms of a legal business structure is the Limited Liability Company-SRO, which can generally be established within three weeks by one or more shareholders. Its advantages include very low minimum required share capital, possible exemption from auditing, and fewer rules compared to other legal entities.

Documents to be presented for the purpose of a crypto company establishment:

• Memorandum of association
• Business plan with detailed financial reporting and business continuity business model
• Documents related to the biography of founders and directors of companies, like a police record, education, etc.
• Description of the hardware and software to be used in conducting the licensed crypto activities
• A letter from the bank, which authorizes depositing equity
• Copy of a relevant trading license

All the documentation required should be in the Czech language. In the case of any certified translator, we at RUE are happy to assist.

Following steps are must for any Crypto Company willing to operate either in or from the Czech Republic:

Registration Process of a New Crypto Company, in brief:

• Verification of the name of the new company
• Opening a corporate bank account
• Transfer of the minimum share capital, which is only 1 CZK (approx. 04 EUR)
• Payment of state fees related to registration – 6000 CZK (ca. 243 EUR)
• Obtaining a compulsory trade licence from the trade licence register
• Registration of a company in the Business Register
• Registration with the Social Security Office, selected insurance companies and tax authorities
• Company registration in the FAA for AML/CFT reporting purposes

To incorporate a company remotely, you will have to sign a power of attorney which will enable your representative to act on your behalf in the process of incorporating your crypto company. If that works for you best, we can assist you with it.

Crypto regulation in Czech Republic

HOW TO OBTAIN A CRYPTO LICENSE IN CZECH REPUBLIC

Although the Czech authorities have not developed any complicated process of licensing cryptocurrencies, this does not exempt companies from the obligation to obtain a license prior to their operations in the Czech Republic.

Currently, most of them are forced to get one of the standard trade licenses from the Trade License Register. The application is relatively easy, and it opens the door to operations in other EU countries, too, including opening branches without needing to go through interminable bureaucratic procedures if they notify local authorities in conformity with local regulations.

Activities fall into the following categories:

Trade subject to notification may be carried out immediately upon notification, while permitted trade may be carried out upon the concession granted in light of a special commercial license if this serves to meet certain conditions, such as relevant professional experience or education.

Licenses available for crypto companies come in several forms, and some of them are the following:

• The Classic — Sharing Among Cryptocurrencies for a Fee
• Fiat-commission-based exchange between cryptocurrencies and fiat money
• Traditional-intermediation services in the exchange of currencies of all types
• Specialized-particular products and related services with cryptography, crypto-wallets, encrypted customer keys, etc.

By virtue of the principle of possible access, EU/EEA crypto licensees are not obliged to obtain a Czech license but are deemed satisfied by the formality of a notification to the Czech authorities, accompanied by a passport.

This may take as long as four months and also covers the incorporation of any new company. All applicants will be subject to general permitting procedures under the Trade Licence Register.

Applications shall be addressed to the central electronic register electronic filing cabinet, signed with the secure electronic signature by the managing director(s). Applications are processed by the competent Trade Licensing Authority of the applicant’s choice.

The following documents and information shall be attached to the application:

• Legal documents and detailed information concerning the qualification company
• Identification documents of the founders, the directors, and the shareholders
• Certificates confirming no criminal record, unpaid taxes, and debts were issued
• Business plan which included strategy and operational policies and procedures

It is expected that all the information furnished would, in all probability, be forwarded to the concerned international supervisory authorities so that an assessment regarding the suitability of the applicant can be made for engaging in licensed crypto activities. Applicants who succeed with their application are granted a license to undertake activities only as authorized by the Trade Licensing Authority. In cases where conditions are attached to the license granted, the licensee can commence the crypto activities only upon complying with conditions so laid down by the authority.

The law binds all licensees upon request to make reports to any regulatory body, and failures to do so may mean suspension of the license on grounds of fraudulent activity.

Please note that the criminal offense consists in initiating a licensed crypto activity without permission. A crypto company with unauthorized operations might be treated as fraudulent and/or receive a fine up to 500,000 CZK (ca. 20,204 EUR) and be forced to stop its activities.

CRYPTO COMPANIES SUPPORT IN CZECH REPUBLIC

Despite the fact that the government has a very liberal approach to crypto business, Czech crypto startups and maturing companies are given a chance to request support from the government, related and non-governmental initiatives. Startup accelerators and incubators support crypto product development, marketing, and sales.

The contact point FinTech CNB first serves all crypto companies in the Czech Republic, provided they can explain how their product or service fits within the definition of financial innovation. The contact point shall also provide a communication channel optimized to improve the functioning of innovative financial market participants. Qualified companies can get regulatory advice via a contact form. Nonetheless, it in no way replaces professional legal advice, and we encourage you to address yourself to our group of experts with specific legal advice.

For financing and other substantial business issues, you may use the following programs:

• CzechInvest, a state agency, offers a seven-month incubator program of CzechStarter with financing to startups, including attendant seminars and expert consulting.
• Blockchain Connect Association/ Czech Alliance, which aims to accelerate the development and promotion of blockchain technology throughout the country to combat fraud and corruption – this should build confidence in innovative financial solutions.
• Cryptoanarchy Institute for Promotion of a Decentralized Economy with Unlimited Dissemination of Information and Widespread Introduction of Such Cryptchain-Based Products and Services.

TAXES ON CRYPTOCURRENCIES IN CZECH REPUBLIC

They should be able to make crypto firms conduct their activities seamlessly under the current tax system, which is being taxed accordingly based on the nature of activities that might fall under different sets of common law. They shall not be treated any different from other enterprises unless certain rules get repealed by EU legislation.

The tax authorities collect and collect taxes on behalf of the Czech government. Though the tax year is concurrent with the calendar year, companies are at liberty to apply the accounting year regarding taxes as their tax year.

Generally, crypto companies are obliged to pay the following taxes:

On the other hand, the Court of Justice of the European Union stated in a judgement that for VAT purposes, cryptocurrencies such as Bitcoin need to be regarded as traditional currency, and therefore crypto exchange services are outside the scope of VAT. All other types of crypto products and services shall be obliged to be registered as a VAT payer. The tax period for newly registered VAT payers is one calendar month.

Whereas the resident companies are taxed on their income around the world, the non-resident companies are taxed in respect of income earned in the Czech Republic alone. A company shall also be considered a resident taxpayer when its head office is in the state or in case of ultimate management and control by shareholders. It is possible for tax residents to shield their tax revenues in two states by means of about 80 international double taxation elimination agreements.

AUDITING REQUIREMENTS

Currently, general rules of audit apply to crypto companies. The approach depends on the purpose for which they were held – since there is no universally accepted definition, they may be held as financial assets, reserves, or even derivatives. Once the management of the company has reached a decision on cryptocurrencies classification, they are to make sure this consistently reflects in the financial statements disclosed.

Auditing is, under the conditions stipulated by law, obligatory for companies that at the same time meet at least two of the following criteria:

• Turnover higher than 80 mill. CZK approx. 3,234,413 EUR
• The total assets higher than 40 mill. CZK approx. 1,617,206 EUR
• Average number of employees higher than 50

Those companies that have the obligation to file audited financial statements should also lodge a cash flow statement and a statement of changes in equity. The annual financial statements are to be published in the Business Register and filed together with the tax declaration.

If you think that the Czech regulatory framework could help you reach success in this innovative and profitable market, then our experienced and dynamic team RUE will help orient you according to the rules. We are perfectly prepared for advice on company formation, licensing, taxation, and reporting. We provide detailed accounting services, tailored to your needs. Efficiency, privacy, and awareness of each detail which may affect the success of your business are assured by each member of our team. Never be afraid to contact us and set an appointment for consultation.

ESTABLISH A CRYPTO COMPANY IN THE CZECH REPUBLIC

Located almost in the heart of Europe, the Czech Republic was famous for its strategic position and for the well-developed and open economy, where foreign entrepreneurs enjoyed equal rights as a Czech citizen. Now, the process of forming a crypto company is almost identical to the formation of any other type of business, except for the additional level of compliance related to AML/CFT.

The following advantages distinguish the Czech business environment:

• Powerful and rapidly growing economy; the economy grew by 3.5% in 2021.
• The Czech Republic is a part of the EU, meaning you will have access to the EU Single Market.
• Supportive government-endorsed investment incentives for innovative startups, for instance, through the Entrepreneurship and Innovation Operational Programme.
• Well-educated and skilled but affordable labor force.
• The Czech Republic ranked 41st among 190 countries in the World Bank’s Ease of Doing Business 2019 ranking, which gives evidence of a quite friendly business climate (based on the easiness of opening and financing an enterprise and eventually conducting economic activity).

All business companies based in the Czech Republic fall under the scope of the Commercial Corporations Act 2012 and address a wide scope of issues concerning the incorporation and activities of the following six types of business entities.

The State Business Register of Czech Companies is kept by the Registration Court and is managed by the Ministry of Justice according to Law 304/2013.

In terms of AML/CFT supervision, financial market participants are overseen by the FAU, which closely cooperates with the CNB responsible for general supervision of the financial market of the Czech Republic. Other national regulators include the Czech Inspectorate and the Ministry of Finance.

Types of business entities

If one is about to establish a fully licensed crypto business in the Czech Republic, one of the first things that come into consideration will be an appropriate business structure. Several business structures are at disposal, but the most common ones include a Limited Liability Company, S.R.O., and Joint Stock Company, A.S.

Regardless of the type of business structure, each crypto company has to meet the requirements in relation to the following:

• Develop internal AML/CFT policies, providing the identification of customers and reporting to the relevant authorities fraudulent activities.
• Detection and acquisition of an office in the Czech Republic.
• Recruitment of full-time staff in the Czech Republic.
• Appoint an anti-money laundering officer who will undergo training according to the needs determined by the Company’s operating model and reporting.
• Development of data protection procedure on the basis of GDPR and other applicable legislation which should provide unhindered safe data exchange with authorities.
• The establishment of policy and procedures on the security of the clients’ funds.
• All accounts records to be in Czech.

Requirements for Directors:

• A company director can be either a natural person or another company.
• In case of a foreign citizen company director, he/she does not need a residence visa in the Czech Republic for his/her registration as a Company Director.
• Criminal record.
• Full legal capacity.
• No statutory bars to prevent a person from trading under trade licensing.

Any document that may be required for the formation of the company should be presented in the Czech language. In case you need a certified translator, our team here in Regulated United Europe (RUE) will be more than glad to assist.

Limited Liability Company – S.R.O.

The most popular form of legal business type is the Limited Liability Company – S.R.O., which can be typically set up within three weeks. Its advantages are very low minimum share capital, possibility of exemption from audit, and less regulation than comparing with other legal types.

What to Do

Either you visit the Czech Republic or you select a distance education company; in that case, you will have to sign the power of attorney, which will enable your representative to act on your behalf during the whole process of crypto company establishment. If you decide to do that, then contact our legal experts and learn what to do next.

With this, a crypto company can be established in as quick as four months with an obtained trading license.

The steps for the process of establishing a licensed cryptocurrency company in the Czech Republic are as follows:

• Checking the name of the company, reserving it.
• Obtaining a legal address for at least one year.
• Preparation and notarization of constituent documents.
• Opening of a corporate bank account in the Czech Republic.
• Transfer of basic share capital to the new bank account.
• Pay the registration fee with the state – 6000 CZK (ca. 243 EUR).
• Registration of the company in the Business Register.
• Application for mandatory trade license from the Trade License Registry.
• Registration of a firm with fiscal authorities.
• Registration of your company with FAU due to AML/CFT reporting.

A reliable regulatory framework for business cryptocurrency has not yet been established in the Czech Republic. However, each crypto company is obliged to obtain a usual trading license from the Trade Licensing Register before the beginning of a business.

Depending on the purpose of using cryptocurrency, the company may apply for any of the following licenses:

• The Classic – Sharing Among Cryptocurrencies for a Fee.
• Fiat – exchange between cryptocurrencies and fiat money on commission.
• Traditional: it intermediates the exchange of currency of any type.
• Specialized: specific products and services regarding cryptography, crypto-wallets, encrypted client keys, etc.

Czech Republic

Capital	Population	Currency	GDP
Prague	10,516,707	CZK	$28,095

Taxation of Crypto Companies in the Czech Republic

Taxes in the Czech Republic are levied and collected by the Tax Offices. Whereas the tax year in principle coincides with the calendar year, companies can adopt an accounting year as the basis for a tax year.

Czech Crypto companies are subject to paying the following general taxes:

Since cryptocurrencies are not viewed as legal tender, therefore it will be advisable to classify it under other inventory. The revenues generated from cryptocurrencies shall be presented as other revenues.

Resident tax companies pay the tax on income received both in the Czech Republic and abroad. Non-resident companies have to pay taxes only from the income obtained in the Czech Republic. If a company is registered or its head office is located in the Czech Republic, then it is a resident taxpayer.

Our team of dedicated highly qualified lawyers will be happy to provide individual, additional support in creating a fully authorized cryptocurrency company in the Czech Republic. From the very beginning of the process, you will receive the support of experts on the creation of companies, the rapid development of legislation on AML/CFT and taxation. Moreover, we will be very happy if we can help you with financial accounting services. Contact us today to get a personal offer.

Crypto Regulation in the Czech Republic 2024

Cryptocurrency business is legal in the Czech Republic, and its activity falls under the general legislative framework, which includes The Trade Licensing Act, The Act on Capital Market Undertakings, and other laws of the Czech Republic. Still, with new EU regulations in place, it is necessary to turn one’s attention to what will change for all member states in due time.

You should also note that the support is offered beyond the events by the following local initiatives:

• CzechStarter – a seven-month incubator programme offered by CzechInvest, a government-backed agency, where startups can break through the Czech market and grow beyond the borders by receiving funding, as well as participating in workshops and receiving advice from experts.
• Technology Incubation project – another CzechInvest’s project, backed by the Ministry for Science, which over the next five years should support up to 250 innovative startups by providing funding of 850 mill. CZK (approx. 35,4 mill. EUR) in seven key areas.
• FinTech contact point by the Czech National Bank (CNB) – a streamlined communication platform with a dedicated contact form, designed to improve the functioning of the innovative financial market startups.
• The Blockchain Connect Association/Czech Alliance – an organisation promoting the development and use of blockchain technology across the country, as well as combating fraud and corruption in the financial industry.
• The Institute of Cryptoanarchy – an organisation that aims to promote the growth of the decentralised economy by focusing on unrestricted dissemination of information and large-scale adoption of blockchain-based products and services.

Cryptocurrency Licence in the Czech Republic in 2024

An application for a Czech cryptocurrency licence in 2024 will also be submitted for a standard trade licence issued by the Trade Licensing Register. It involves filling out, online, the state application form in Czech with the name of the crypto company and founders. Following this, the application is enriched with a state application fee of 6,000 CZK, about 240 EUR, for consideration by the general Trade Office.

The following types of trade licenses are provided in 2024:

• Classic-with exchange of cryptocurrencies for a commission
• Fiat-for exchanging cryptocurrencies and fiat money for commission
• Traditional-for intermediation in the exchange of currencies of all types
• Specialised-For specific crypto-related products and services, crypto wallets, encrypted client keys, etc.

The sine qua non would be the opening of a company in the Czech Republic. Due to its advantages, such as low minimum share capital, a low number of founders, and an exemption from a financial audit, SRO is a very usual legal business structure in the Czech Republic. The crypto company must be registered and actually domiciled in the Czech Republic, it must employ at least two employees on a full-time basis, and it must provide at least two fit and proper directors, an AML Officer. Also, the Company shall prove the adoption of the internal AML/CFT policy, compliance with the data protection legislation, and the measures to provide for clients’ assets safety.

Cryptocurrency Taxes in the Czech Republic 2024

The Czech Republic has been among the top positions of the International Tax Competitiveness Index for the last few years and will not be expected to raise any tax rates in 2024. It will be one of the friendliest countries for companies operating in cryptocurrencies. However, you are recommended to get yourself acquainted with those changes introduced by the Organization for Economic Cooperation and Development and applying to the Czech Republic.

In 2023, OECD introduced Crypto-Asset Reporting Framework, CARF, which allowed the automation of tax reporting and information-sharing on crypto assets across international tax administrations. A crypto-asset reporting framework covers organizations and individuals offering services in crypto exchanges and transfers of crypto, including those that involve retail payments. Crypto assets not used as a means of payment or as an investment, plus those related to centralized stablecoins, are also exempt under this framework.

Recent Changes: One example of recent national changes is to Social Security and Health Insurance. Beginning in February 2024, employers pay the lowered rate of 5% for those employees who qualify as members of eligible social groups—for example, persons taking care of a child under ten years old or persons with a disability—and that work part-time. All other tax rates and allowances remain the same.

MiCA Regulations within the Czech Republic

The MiCA Regulation is the very first overall EU regulation in cryptoasset markets.

Thanks to the efficiency of the MiCA regulation, cryptoasset business has moved from a grey, unregulated zone to a well-defined and regulated system. The MiCA Regulation will enter into force on June 30, 2024, and also has a biphasic character: Asset-backed tokens and e-money tokens fall within the scope of the regulations, which enter into force on June 30, 2024, while the rest of the regulation will take effect on December 30, 2024. Crypto service providers who had provided their services in the Czech Republic in accordance with the law applicable until December 30, 2024, may still provide services until July 1, 2026.

Lawyers from the Regulated United Europe also provide legal services on getting the Czech Republic crypto license.