CASP License in the Czech Republic

An increasing number of crypto projects, when choosing a jurisdiction within the European Union (EU), are opting for the Czech Republic. This is partly due to the upcoming implementation of the Markets in Crypto-Assets (MiCA) regulation. Although some of its provisions are already in effect, changes will only apply to Crypto-Asset Service Providers (CASPs) starting from June 30, 2025.

In light of these changes, entities that previously operated as Virtual Asset Service Providers (VASPs) are required to update their license in order to continue their activities. New market participants will receive the CASP license directly.

Below, Lawrange experts will provide more information on the regulatory framework, applicant requirements, and the licensing process.

Why Choose the Czech Republic for CASP Licensing

A Czech CASP license means that a provider of crypto-asset-related services complies with strict regulatory standards, primarily established by the EU MiCA regulation and overseen by the Czech National Bank (CNB, Česká Národní Banka).

This type of license is mandatory for any organization intending to offer services such as:

• cryptocurrency exchange;
• custodial storage;
• portfolio management;
• crypto-asset advisory services in or from the Czech Republic.

For those seeking to obtain a CASP License in the Czech Republic, there are a number of specific advantages:

1. Access to the EU market thanks to the country’s favorable geographical location.
2. The corporate tax rate is among the most advantageous in the EU.
3. A favorable domestic market fueled by active interest of Czechs in cryptocurrency.
4. Developed technological and business infrastructure (a large number of qualified workers).
5. Operational expenditures are generally lower than in Western Europe.
6. The possibility to register a company and prepare the necessary documentation without personal presence.
7. Accelerated opening of a bank account for CASPs.
8. Simplified interaction with the regulator under MiCA due to previous experience regulating VASPs at the national level.

At first glance, the introduction of stricter MiCA standards in place of simple VASP registration might seem like a complication for business (more requirements, inspections, expenses), but in fact, this transition signifies the maturity of the cryptocurrency market. When a market is just emerging, it is often unregulated, and companies operate with little to no oversight. Regulation, however, filters out dishonest players, increasing trust from both large investors and regular users.

Legal Framework for CASP Regulation in the Czech Republic

The legal framework that regulates the activity of CASPs in the Czech Republic has significantly changed only in the last few years.

Until recently, regulation was mainly under the Czech Act No. 253/2008 Coll., on Selected Measures Against the Legitimisation of Proceeds of Crime and Financing of Terrorism. Companies offering cryptocurrency purchase, sale, storage, or exchange services for third parties were required to register the relevant trade activity (field No. 81 – “Provision of services related to virtual assets”) with the Trade Licensing Office. Supervision of AML/CFT compliance was carried out by the Financial Analytical Office (FAO), which required KYC identification of clients and transaction monitoring.

Currently, the Czech Republic is actively implementing EU regulations:

• Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA);
• Regulation (EU) 2022/2554 on digital operational resilience for the financial sector (DORA).

The enactment of the national Czech Act on Digital Finance, along with related legislation, is anticipated to provide detailed guidance on the implementation of these European standards within the domestic legal framework.

The Czech National Bank (CNB) serves as the primary authority responsible for regulating and licensing CASPs in the Czech Republic. The bank is responsible for authorization, supervision, and enforcement of MiCA requirements (regarding capital, risk management, and consumer protection).

DORA, for its part, imposes obligations on CASPs to ensure digital operational resilience, including robust IT risk management, cybersecurity, business continuity planning, and incident reporting.

Transition Period for Existing Providers (VASP)

For companies that, as of December 30, 2024, are already providing crypto-asset-related services based on a trade license, transitional provisions apply.

These entities, provided they submit an application to obtain a CASP License in the Czech Republic in accordance with Article 63 of MiCA to the CNB no later than December 31, 2024, may continue their activities based on their existing authorization, but:

1. Only until the CNB makes a decision on their application;
2. And no later than July 1, 2026.

The field of cryptocurrency regulation remains dynamic. For detailed information, please review the requirements for obtaining a Crypto License in the Czech Republic.

Types of CASP Licenses in the Czech Republic

To obtain a CASP License in the Czech Republic, your company must determine which specific crypto-asset services it will provide. The official text of Regulation (EU) 2023/1114 (MiCA) in Article 3 (Definitions), paragraph 1, subparagraph 16 clearly defines 10 main classes of such services:

1. Safekeeping and management of crypto-assets on behalf of clients (such as services related to crypto wallets).
2. Managing a trading venue for crypto-assets (cryptocurrency exchange platform).
3. Exchange of crypto-assets for fiat money (euro, dollars).
4. Conversion of one crypto-asset into another (e.g., Bitcoin into Ethereum).
5. Execution of orders to buy/sell crypto-assets for clients.
6. Placement of crypto-assets (assistance in selling newly created tokens).
7. Reception and transmission of orders for crypto-assets on behalf of clients.
8. Providing advice on crypto-assets.
9. Providing portfolio management on crypto-assets.
10.  Offering crypto-asset transfer services on clients’ behalf.

It is on one or several of these 10 types that you will obtain CASPs in the Czech Republic. There is no single universal license for everything at once.

However, sometimes more general names are used to describe the business, such as “classic exchange” (between cryptocurrencies themselves), “fiat exchange” (cryptocurrencies to regular money), “intermediation” in exchange, or “specialized services” (such as crypto wallets). In any case, they are still licensed through the corresponding official classes of services under MiCA.

Key Requirements for Obtaining a CASP License

Obtaining a CASP License in the Czech Republic requires applicants to demonstrate to the CNB that they meet a comprehensive set of requirements. These are largely dictated by MiCA and include:

• minimum share capital;
• AML/KYC compliance policies;
• financial reporting obligations;
• directors’ and beneficial owners.

Below we detail each of these components.

Minimum Share Capital

The MiCA regulation introduces differentiated requirements for the minimum initial capital for CASPs. The precise amount is determined by the specific range of services the company intends to provide.

For CASPs whose activities include exchange operations (conversion of fiat funds into crypto-assets and vice versa, as well as exchange of one crypto-asset for another), the minimum share capital is set at €125,000 or €150,000.

AML/KYC Compliance Policies

Considering that CASPs are classified as high-risk entities in the context of AML/CFT, CNB inspections are common practice. Accordingly, it is critically important to:

• develop and implement reliable anti-money laundering (AML) and “Know Your Customer” (KYC) policies and procedures;
• confirm the identities of all clients, their ultimate beneficial owners, and any politically exposed persons (PEPs);
• appoint an AML officer;
• comply with the Czech AML Act and relevant EU Directives (in particular, the 6th AMLD).

Being compliant in this area is an integral condition for CASP licensing in the Czech Republic.

Financial Reporting Obligations

CASPs are required to regularly submit financial reports to the CNB, undergo an annual audit conducted by an independent auditor, maintain comprehensive records of all transactions and client activities, and preserve these records for a minimum of five years.

Furthermore, CASPs must maintain sufficient own capital and liquid assets, and fully comply with financial regulations established by the national bank and MiCA.

Directors’ and Beneficial Owners

To obtain CASPs in Czech Republic, the individuals who manage and own the company must undergo a thorough CNB evaluation to confirm compliance with the fit and proper criteria. This means that directors and beneficial owners (with a share of 25%+) must have an impeccable reputation, a clean criminal record, and must not be connected with insolvency cases in the past.

Next, CNB analyzes the professional qualifications and experience of the management team, meaning they must demonstrate knowledge in financial services, IT security, and risk management corresponding to the operational model of the CASP. It is also checked whether directors will be able to devote sufficient time to their official duties.

CASP Licensing Procedure in the Czech Republic

Although the CASP licensing process is unique for each applicant, the general sequence of steps remains unchanged for all participants.

Preparation of Documentation

It is based on the submitted documents that CNB will assess the company’s compliance with the current regulatory criteria. Accordingly, obtaining a CASP License in the Czech Republic requires the following:

1. A strategic business plan covering a minimum three-year timeframe.
2. A description of the operational infrastructure for the types of CASP services to be provided.
3. Information about the crypto-assets the CASP intends to work with.
4. The company’s charter, confirmation of legal establishment.
5. Information about management and shareholders.
6. Evidence of meeting the minimum share capital requirements.
7. Documented requirements regarding AML/KYC policies and procedures.
8. Policies for complaint handling, protection of client assets.

If the original documents are in a foreign language, a translation into Czech will be necessary, often requiring notarization.

Any inaccuracies in the submitted materials will delay the application review or lead to refusal of issuing CASPs in the Czech Republic. If you want to speed up the process, enlist the support of qualified lawyers from AA Lawrange.

Company Registration in the Czech Republic

Prior to submitting an application for a CASP License Czech Republic, registering a legal entity is required. The most common forms are:

1. Společnost s ručením omezeným (s.r.o.) – a limited liability company suitable for small and medium-sized enterprises.
2. Akciová společnost (a.s.) – a joint-stock company, a good choice for large enterprises, especially if capital raising via public offering is planned.

To start the process, preparation of establishing documents, registration in the Commercial Register, and fulfillment of other local legal requirements are necessary. If you are interested in company formation within the shortest time, Lawrange lawyers are always at your service.

Application Submission to the CNB

Provided all previous stages have been successfully completed, the official submission of the application for a CASP License Czech Republic to the National Bank is carried out together with the supporting documentation. Then, according to MiCA rules, CNB has approximately 5 working days to accept the documents, and up to 25 working days are allocated for review. If no objections arise, about 40 more working days are given for the substantive consideration and final decision.

However, the timelines are approximate, and in practice the process often takes longer. Expert support, for example from Lawrange, will help monitor the review progress and promptly respond to CNB’s requests.

Important! For existing VASPs undergoing the re-licensing procedure, CNB must make a final decision on their application (and accordingly, the right to continue operations) no later than July 1, 2026. If the national bank is convinced that the applicant meets the requirements, the decision to issue the Czech CASP license is made.

Opening a Bank Account for Casp in the Czech Republic

Traditionally, the cryptocurrency industry has faced certain challenges in establishing cooperation with banking institutions. However, the introduction of the MiCA regulation and the presence of a license from a reputable supervisory authority such as CNB have significantly improved the prospects for opening bank accounts for crypto companies.

Despite this, Czech banks, like financial institutions in other jurisdictions, will conduct their own enhanced due diligence on the applicant. It is recommended to target banks with experience servicing fintech companies or demonstrating knowledge of the digital assets industry.

Taxes for Casp Companies in the Czech Republic

CASP companies operating in the Czech Republic are obliged to comply with the local tax regime. The main aspects are summarized in the table below.

* A special CIT rate of 15% may apply to dividends received by Czech companies from foreign (non-resident) companies.

Remember that proper tax planning and consultations with Czech tax advisors and experienced lawyers can optimize tax efficiency.

Timeframe and Cost of CASP Licensing in the Czech Republic

The process of obtaining a Czech CASP license involves multiple stages.

CASP License Czech Republic requires significant financial investments. One must take into account official CNB fees for application review, which will likely amount to several thousand euros, as well as the statutory capital (from €50,000 to €150,000+).

Other operational and preparatory expenses should also not be forgotten, including:

• office setup;
• creation of IT infrastructure (according to DORA requirements);
• hiring an AML officer;
• compliance software.

In summary, CASP licensing in the Czech Republic requires not only financial investments but also an understanding of the complex regulatory environment. In this context, qualified legal support plays a decisive role in easing administrative procedures and, as a result, rationalizing costs.

Why Choose Lawrange for CASP Licensing in the Czech Republic

The AA Lawrange team brings more than a decade of experience assisting international companies with complex licensing, corporate structuring, and compliance matters across the EU. We understand the specifics of European and Czech legislation, ensuring that your application meets the requested requirements.

Interested in comprehensive support at all stages of obtaining a Czech CASP license? Contact our manager — together we will bring your CASP business start in the Czech Republic closer to success!

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