Crypto License in Czech Republic

Launch Your Crypto Business in the Czech Republic

The Czech Republic is emerging as a strategic hub for MiCA-compliant Crypto Asset Service Providers (CASP). Licensed by the Czech National Bank (CNB), a CASP license enables companies to operate legally across the EU while maintaining strong regulatory credibility and trust with investors and partners.

Benefits for clients:

• Legal authorization for crypto exchanges, wallets, custody services, and token issuance
• Access to European banking and payment systems
• MiCA-compliant AML/KYC and risk management frameworks
• Investor and partner confidence
• Flexible corporate structuring suitable for startups and institutional projects

Why the Czech Republic

The Czech Republic provides:

• CNB oversight, fully aligned with EU MiCA standards
• 100% foreign ownership allowed
• Fast incorporation: 5–10 business days
• Transparent regulatory compliance and reporting
• Competitive corporate tax: 19%
• Seamless access to European banking and payment service providers

This combination of credibility, clarity, and operational efficiency makes the Czech Republic ideal for exchanges, token issuers, and custody providers.

Who Should Apply

A Czech CASP license is ideal for:

• Crypto exchanges targeting EU clients
• Wallet and custody providers
• Token issuance platforms (TGE/STO)
• DeFi and Web3 infrastructure projects
• Crypto investment funds and hedge funds
• Blockchain service providers

Company Formation Requirements

Before applying for a CASP license, you must establish a legal entity. A common structure is a Limited Liability Company (s.r.o.).

Key features:

• 100% foreign ownership permitted
• Minimal share capital (~CZK 1)
• Fast incorporation: 5–10 business days
• MiCA-compliant corporate governance
• Transparent ownership and reporting

Licensing Requirements

To obtain a CASP license in the Czech Republic, applicants must provide:

• Detailed business plan including services, workflow, and target markets
• AML/KYC compliance procedures aligned with EU regulations
• Internal governance and risk management policies
• Qualified management and board members
• Cybersecurity and IT control frameworks
• Due diligence for directors and UBOs

CNB emphasizes: operational substance, risk management, and investor protection.

Costs and First-Year Budget

Regulatory Fees:

• CASP / VASP license: €20,000 – €35,000
• Annual supervisory fee: from €15,000

Company Formation & Maintenance:

• Incorporation: €2,500 – €5,000
• Registered office & annual maintenance: €2,000 – €4,000

Legal & Compliance Structuring:

• AML/KYC documentation: €7,000 – €15,000
• Risk management and governance: €5,000 – €10,000
• Full advisory & submission package: €15,000 – €30,000

Estimated first-year budget: €50,000 – €100,000+, depending on scale and business model.

Licensing Timeline

1. Business model and risk assessment
2. Company incorporation: 5–10 business days
3. Compliance and governance document preparation: 3–6 weeks
4. Submission to CNB
5. Regulatory review and clarifications
6. License approval and issuance

Typical timeframe: 2–4 months; complex exchanges or custody setups may require additional review.

Banking and Payment Integration

A Czech CASP license enhances credibility with:

• EU banks and crypto-friendly PSPs
• Stablecoin settlement partners
• European payment infrastructure

Banking approval depends on:

• Transparent ownership and UBO disclosure
• Verified source of funds
• Strong compliance and risk management
• Operational substance

Proper structuring significantly increases the chances of successful banking relationships.

Ongoing Compliance Obligations

Licensed CASPs must:

• Maintain active AML/KYC monitoring
• Appoint compliance and AML officers
• Submit regulatory reports on time
• Pay annual supervisory fees
• Conduct audits as required

Non-compliance may result in fines, license suspension, or revocation.

Czech CASP vs Other EU Jurisdictions

Czech Republic (CNB CASP / VASP)

• Regulation: MiCA-compliant
• Cost: medium
• Reputation: high in EU and globally
• Best for: exchanges, custody providers, token issuers, institutional projects

Other EU jurisdictions:

• Malta: higher cost, MiCA-compliant, strong EU credibility
• Estonia: medium cost, EU-focused startups
• Cyprus: MiCA-compliant, flexible structures, banking access

FAQ — Czech CASP / Crypto License

Why choose Czech Republic for CASP licensing?

MiCA-compliant framework, fast incorporation, and transparent governance provide legal certainty and operational flexibility.

Can a licensed CASP operate across the EU?

Yes, but local consumer protection rules must be followed in each member state.

How does CNB evaluate custody providers?

Focus on internal controls, risk management, and cybersecurity, not only capital.

Are operational requirements beyond capital mandatory?

Yes: AML/KYC workflows, risk management, board qualifications, and IT security are mandatory.

Can startups obtain a CASP license affordably?

Yes, by using lean operations, outsourced compliance, and scalable IT infrastructure.

Does the license help with banking?

Absolutely. CNB-regulated CASPs are trusted by EU banks and PSPs.

What are the risks of non-compliance?

Fines, suspension, or revocation. EU regulators emphasize substance and ongoing monitoring.

Is the Czech Republic suitable for token issuance and custody?

Yes, provided risk management and investor protection measures are in place.