Due to its favorable legislation and being a financially stable country that is loyal to the blockchain, the Czech Republic is attractive for cryptocurrency activities and this has turned the country into a welcome home for crypto companies.
Presently, there is no particular crypto license in the Czech Republic, but crypto companies aspiring to start economic activities in the Czech Republic must obtain a general trade license from the Trade Licensing Register.
This license will allow them to operate within the EU, including the opening of offices in any member country without having to deal with comprehensive bureaucracy, given that they notify local authorities in agreement with local regulations.
The Czech license for cryptocurrency is respectable, as it confirms the issuer’s reliability and transparency. So if the crypto company does not receive the applicable license, it risks being identified as a fraudster, fined up to 500,000 CZK, and forced to shut down.
Crypto licensing process in the Czech Republic
To obtain a license, a crypto company must be registered in the Czech Republic. And after registration, the company is required to follow general authorization procedures, specified by the Trade Licensing Register.
Generally, a crypto company must apply to one of the general Trade Offices in the Czech language containing all the important information about the company and its shareholders. It must also prepare the following.
- open a bank account
- it must hire official full-time employees and directors with experience in the financial field
- it must develop a business plan, (in Czech language or with a translation);
- it must provide evidence of compliance with AML legislation, and
- Submit a package of documents for licensing to the regulator and pay a fee.
The review of the application may include information sharing with foreign regulatory authorities. And if the application is successful, a license will be issued only for certain crypto activities.
After your company gets its Crypto license in the Czech Republic
Once a crypto company is issued a license in the Czech Republic, the licensee is required to share relevant reports with applicable authorities. In case of errors or refusal, the license might be postponed without the possibility to procure a new one as such a company would be considered fraudulent.
In order to avoid this, it is highly recommended to work with a professional who can help with the appropriate steps and requirements – your Damalion expert can help in this aspect.
Also, Crypto licenses should be aware that they should constantly meet formal corporate reporting requirements which are closely related to the International Financial Reporting Standards (IFRS).
With your Damalion experts, you can register a company and get a license for a cryptocurrency exchange without any hassle or a loss of time in the Czech Republic.
Just contact your Damalion expert now if you’ve decided to obtain a crypto license in the Czech Republic.
