Capital and Governance Requirements for Czech Crypto Licenses

Operating a crypto business in the Czech Republic requires strict adherence to regulatory standards, particularly regarding capital requirements and corporate governance. Compliance with these rules ensures your company can obtain a CASP (Crypto-Asset Service Provider) license, operate legally, and gain trust from investors, banks, and regulators across the EU.

Capital Requirements for Czech Crypto Licenses

Capital requirements for crypto businesses vary depending on the type of service offered. The Czech National Bank (ČNB) mandates minimum share capital to ensure financial stability and risk management:

• Advisory services: €50,000
• Custody or exchange services: €125,000
• Trading platforms and multi-service providers: €150,000+

Additional reserves may be required depending on the operational scale, transaction volume, and risk exposure. Maintaining sufficient capital demonstrates credibility and financial solvency to both regulators and clients.

Governance Requirements

Robust governance structures are essential for regulatory approval and ongoing compliance. Key requirements include:

• Appointment of qualified directors and compliance officers
• Clear operational hierarchy and decision-making processes
• Functional presence in the EU to manage and oversee operations
• Strong risk management and internal control frameworks
• Transparent reporting and accountability systems

Effective governance ensures the business can respond to regulatory changes, manage operational risks, and protect client funds.

Compliance and Internal Controls

Czech crypto licenses require ongoing adherence to AML/KYC procedures and other compliance obligations:

• Establish internal policies aligned with EU and ČNB regulations
• Conduct regular internal audits of financial, operational, and IT systems
• Ensure cybersecurity measures protect client assets and data
• Review governance and risk management frameworks periodically

Strong internal controls are critical to prevent regulatory breaches, financial loss, or reputational damage.

Benefits of Meeting Capital and Governance Requirements

Adhering to Czech capital and governance requirements provides several advantages:

• Eligibility for a CASP license under Czech and EU regulations
• Investor and banking confidence due to financial stability and transparency
• Access to EU-wide passporting, allowing cross-border operations
• Clear, compliant corporate structure for long-term business growth

FAQ — Capital and Governance for Czech Crypto Licenses

What is the minimum capital required?

Depends on the service type: advisory (€50,000), custody/exchange (€125,000), trading platforms (€150,000+).

Are qualified directors mandatory?

Yes, regulatory approval requires competent directors and compliance officers.

Is EU presence required?

Yes, functional management must operate within the EU for license approval.

How often should internal controls be reviewed?

Periodically, in line with operational risks, regulatory changes, and MiCA guidance.