Regulatory Framework for Crypto-Asset Service Providers (CASPs) in the Czech Republic

Operating a crypto-asset business in the Czech Republic requires strict adherence to regulatory obligations. The Czech National Bank (ČNB) and European Union directives prioritize financial transparency, anti-money laundering (AML), and investor protection. This guide outlines the essential compliance requirements for CASPs to operate legally and securely.

Licensing Compliance for CASPs

Before launching services, crypto-asset service providers must:

• Obtain authorization from the Czech National Bank as a CASP. Learn how to obtain a CASP license in the Czech Republic.
• Maintain an active license with ongoing reporting obligations.
• Demonstrate adherence to regulatory standards including corporate governance, capital requirements, and risk management policies.
• Ensure their operations meet all criteria for MiCA passporting benefits to operate across the EU.

Proper licensing ensures CASPs can legally operate in the Czech Republic and access European banking and payment networks.

Anti-Money Laundering (AML) Requirements

AML compliance is a cornerstone of regulatory oversight for CASPs:

• Customer Due Diligence (CDD): Verify client identities using government-issued documents.
• Ongoing Monitoring: Track transactions for unusual or suspicious activity.
• Suspicious Activity Reporting (SAR): Notify the ČNB or other relevant authorities of suspicious transactions.
• Record Keeping: Maintain detailed transaction and verification records for audits.

Follow the CASP compliance checklist 2026 to ensure all AML measures are met. Non-compliance may result in fines, license suspension, or revocation.

Know Your Customer (KYC) Procedures

CASPs must implement robust KYC procedures to reduce risk:

• Verify the identity and residency of clients.
• Assess risk profiles for high-value transactions or suspicious activity.
• Update verification processes regularly to align with evolving regulations.

KYC procedures protect both the provider and clients, ensuring compliance with Czech and EU standards.

Risk Management and Internal Controls

CASPs are required to establish internal compliance frameworks:

• Appoint dedicated compliance officers.
• Conduct internal audits of financial, operational, and IT systems.
• Ensure cybersecurity and data protection policies are enforced.
• Review AML/KYC procedures periodically.

External audits by accredited firms are often required to verify compliance and operational integrity.

Reporting and Regulatory Obligations

Ongoing reporting ensures transparency and accountability:

• Submit periodic reports to the Czech National Bank.
• Maintain records of transactions, audits, and compliance reviews.
• Report any material incidents or breaches.
• Ensure financial statements are accurate and audited.

Meeting these reporting requirements is crucial to maintaining license validity and regulatory trust.

FAQ — Compliance and AML for CASPs

What are the key AML obligations for CASPs?

• Customer identification, transaction monitoring, suspicious activity reporting, and record keeping.

Are audits mandatory?

• Yes, both internal and external audits are required by most regulators.

What happens if a CASP fails compliance?

• Operators may face fines, suspension, or revocation of their license.

How often should KYC procedures be updated?

• Regularly, based on risk assessments and regulatory updates.

How can I ensure my CASP meets the 2026 compliance checklist?

• Follow the CASP compliance checklist 2026 and consult regulatory experts.

Can a Czech CASP operate in other EU countries?

• Yes, with MiCA passporting benefits, a licensed CASP can offer services across the EU.