How to get a crypto license in the Czech Republic?.
The current stage of cryptocurrency development is characterized by an increasing number of countries participating in regulation. Since the cryptocurrency market is still new from a legal perspective, each country strives to maintain a balance between market freedom, protection of consumer rights, and government interests. Thus, the difference in the approach to regulation of the sphere by different jurisdictions leads to the emergence of the practice of “regulatory arbitrage” when companies select jurisdictions based not on the real connection between business and the state but on searching for a more accessible regulator. One of the best options today is the Czech Republic.
Benefits of obtaining a crypto license in the Czech Republic
Czech crypto registration has gained well-deserved favor due to the following advantages of this jurisdiction:
The comprehensive functionality of the license:
1. Czech legislation allows you to obtain permission for the activities of the company as:
- Cryptocurrency exchange service provider:
It involves the exchange of fiat funds for cryptocurrency and the exchange of cryptocurrency for cryptocurrency.
- Crypto wallet service provider:
It involves managing wallets for storing clients’ cryptocurrencies.
- Initial Coin Offering (ICO) Service Provider:
It involves providing services for the initial coin offering (ICO) for the issuance and initial public sale of new coins.
- Creation of a crypto fund:
It involves receiving cryptocurrency from customers and managing it.
2. Speed and ease of obtaining a crypto license:
The simplicity of the procedures for obtaining crypto-registration and the absence of classical licensing requirements allow you to get a fully functioning company from scratch in 3 months, which is faster than most other European solutions.
3. Jurisdiction reputation:
The Czech Republic is a reputable European jurisdiction that allows you to open European bank accounts and receive favorable payment system rates. In addition, Czech crypto registration will allow you to receive a greater level of trust from your clients compared to unlicensed projects.
4. Solution cost:
The Czech Republic is one of the most inexpensive countries in Europe for doing crypto business. This is due to the low requirements of the regulator to the authorized capital, relatively low taxes, and favorable cost of accounting services in the Czech Republic.
Requirements for obtaining a crypto license in the Czech Republic
The requirements put forward by the regulator of the Czech cryptoregistration are comparatively simple. So in the country, there are no requirements for the residency of the company’s founders and director or AML officer. There are also no requirements for having a physical office in the Czech Republic. Requirements for tax reporting and auditing are also simple and approximately equal to those put forward by other countries of Eastern Europe, such as Poland or Lithuania. One of the significant advantages of the Czech Republic over other countries with crypto registration is the requirement for authorized capital. The minimum authorized capital is 10 000 CZK, equivalent to about 400 EUR.
Stages and terms of obtaining a crypto license in the Czech Republic
To obtain crypto registration in the Czech Republic, you should go through pretty simple steps that contrast Czech crypto registration with other licenses, such as Kazakhstan or the UK.
- The first step is to prepare required documentation. The package of documents is standard and consists of documents confirming the identity of the founders, as well as their address of residence. To go through the remote process of registering a company and receiving crypto registration a notarized power of attorney from each company’s founders will be required. In addition, at this stage, the primary corporate documents of the company are created. In our practice, this stage takes about 2 weeks, with the timely submission of documents;
- The second stage of obtaining crypto-registration is registering a company with the following company entry into the register. In our practice, this stage also takes approximately 2 weeks from the start of the registration process;
- The next step in obtaining crypto-registration is to obtain a power of attorney to notify the regulator about future registration. This process takes approximately 1 week;
- The final step in obtaining crypto registration in the Czech Republic is to apply with the following documents for registering a company in the register of companies providing crypto services in the Czech Republic. Also, at this stage, a contact person is registered with the FAU (Financial Analytical Office). This stage, based on our experience, takes approximately 2 weeks.
After completing the crypto registration, you will receive a ready-made working crypto company for which it remains to open bank accounts or accounts in an electronic money institution. It will be completely ready for doing business.
If you need to obtain crypto registration in the Czech Republic, please get in touch with SBSB Fintech Lawyers. Since 2013, we have been working with the FinTech and Crypto areas, offering individual solutions to each client, considering their company’s business model. Our experts will help you choose the best type of license and prepare a package of documents, legalizing the crypto business following the laws of the Czech Republic and providing full legal support for this process.