In the Czech Republic, a comprehensive set of rules governing cryptocurrency businesses has yet to be developed. Currently, crypto activities are not distinguished as a separately regulated area and cryptocurrencies are not considered legal tender. Most crypto companies engaged in crypto-related economic activities are subject to general legislation for the Czech financial market. This liberal approach allows for innovation and experimentation with rapidly evolving products and services, as long as all relevant EU rules are followed.

All financial market participants are supervised for AML/CFT purposes by the Financial Analysis Office (FAU). This authority works closely with the Czech National Bank (CNB), which is responsible for the overall supervision of financial markets in the Czech Republic. Other national supervisory authorities include the Czech Inspection Office and the Ministry of Finance.

The CNB does not consider cryptocurrencies to be legal tender, but rather classifies them as commodities. The decision is based on the conclusion reached in existing legislation that encrypted data stored on a blockchain does not constitute a claim denominated in traditional national currency issued by a central bank, credit institution or other payment service provider. Cryptocurrencies are not considered electronic money pursuant to Section 4(1) of the Payment Systems Act, and they are not considered money pursuant to Section 2(1)(c) of the Payment Systems Act.

AML/CFT legislation in the Czech Republic

The most important legislation relevant to crypto companies in the Czech Republic comes from the European Union. According to a security brief on Internet payments and cryptocurrencies published by the Czech National Bank (CNB) in 2018, all such companies operating in the Czech Republic are obliged to comply with EU law.

Although crypto activities in the Czech Republic are largely unregulated, the authorities have ensured transparency as a key operating principle by transposing the Fourth EU Anti-Money Laundering Directive (4AMLD), the Fifth EU Anti-Money Laundering Directive (5AMLD) and the Sixth EU Anti-Money Laundering Directive (6AMLD), which require cryptocurrency exchanges and crypto wallet providers to adopt strict internal AML/CFT procedures. These directives cover routine due diligence measures, the collection, documentation and storage of information, AML/CFT risk assessments, beneficial ownership, suspicious transaction reporting; transactions for clients from high-risk countries and enhanced customer due diligence.

In fact, national authorities have gone further and covered a wider range of crypto-related economic activities. This means that AML/CFT applies to businesses that trade, store, manage or broker the purchase or sale of virtual currencies or provide other crypto-related services. In this context, virtual currency is defined as a digital unit that does not fall into the category of legal tender but is still accepted as a means of payment for products and services by individuals who are not the issuers.

The following AML/CTF laws apply to companies engaging in cryptocurrency-related economic activities in the Czech Republic:

• AML Law (Act No. 253/2008), setting out the AML/CFT principles

• Anti-Money Laundering Regulations (Legislative Decree No. 281/2008), which provides requirements for corporate policies and procedures in the area of combating money laundering/terrorist financing

• The Penal Code (Law 40/2009), defines criminal acts

• International Sanctions Law (Law 69/2006), which provides rules on international sanctions

To comply with AML/CFT rules, crypto companies should take the following steps:

• Develop and implement internal AML/CFT policies

• Take procedures and appropriate measures regarding PTA

• Continuously assess the risks associated with your clients

• Hire an AML officer and provide relevant training

• Collect and prepare disclosures of ultimate beneficial owners (DOEs) of companies or institutions initiating transactions

• Report suspicious transactions and customers

• Prepare reports as required by the authorities in a timely manner

• Prepare to exchange information on cross-border money transfers

According to the EU directive and its adaptation in the Czech Republic, every crypto company must collect the following information about its customers in order to properly apply KYC procedures:

• Natural persons – name, birth certificate number, date and place of birth, residential address, nationality, and, if the individual has a business, company name, business address and company identification information

• Company – Company name, head office address, identifying information, including beneficial owner information

• Organization without legal personality – name, administrator or equivalent

Failure to comply with AML/CFT obligations is considered a criminal offence and may result in penalties such as termination of business, confiscation of assets, fines and publication of judgments. The level of legal measures required is determined after a careful assessment of the nature of the violation and the type of person responsible.

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Crypto Company Formation in Czech Republic 2025

To obtain a license, you need to set up a company in the Czech Republic. One of the most common legal business structures is a limited liability company (SRO), which can usually be set up by one or more shareholders within three weeks. Its advantages include very small share capital requirements, possible exemption from audits, and fewer rules than other legal entities.

Documents required to create a crypto company:

• Articles of Association

• Business plan with detailed financial reports and business continuity business model

• Biographical documents of founders and company directors (criminal record, education, etc.);

• Documentation regarding any hardware and software that will be used for licensed cryptographic activities

• Bank documents allowing deposit capital

• A copy of the relevant trading license

All necessary documents should be in Czech. If you need a certified translator, our team here will be happy to help.

Crypto companies intending to work in or from the Czech Republic must undertake the following mandatory steps:

• Registered establishment in the Czech Republic for at least one year

• Hiring in the Czech Republic

• Appoint at least one healthy and fit resident or non-resident director (with relevant education and professional experience and no criminal record);

• Develop clear internal AML/CFT policies that can detect and report fraudulent activities and customers

• Appoint a competent anti-money laundering officer who should be properly trained and prepared to report to the relevant authorities;

• Establishing data exchange and protection procedures in accordance with national and EU legislation

• Develop policies to protect client funds

The process of registering a new crypto company includes the following steps:

• 
  

• Verify the name of the new company

• Open a company bank account

• Transfer of minimum share capital, only 1 CZK (about 0.04 EUR)

• Pay the state fee associated with the registration – 6000 CZK (approx. 243 EUR)

• Obtain a mandatory trade license from the Trade License Registry

• Register the company with the Commercial Register

• Register your company with the Social Security Administration, selected insurance companies, and tax authorities

• Register company with FAA for AML/CFT reporting

• To set up a company remotely, you must sign a power of attorney allowing your representative to complete the entire process of creating a crypto company on your behalf. If this is the best option for you, we will help you.

• 
  

• Notifiable trade may be carried out immediately upon notification

• Authorized transactions, if certain conditions must be met (e.g. relevant professional experience or education), can be carried out on the basis of obtaining a special business license

• Classic – Sharing with a fee for cryptocurrency

• Fiat – Exchange between cryptocurrencies and fiat currencies on commission

• Traditional – Various currency exchange intermediaries

• Specialty – Specific crypto-related products and services (crypto wallets, crypto client keys, etc.)

• Corporate documents and detailed company qualifications information

• Identification documents of founders, directors and shareholders

• Certificate of no criminal record, unpaid taxes and outstanding debts

• A business plan containing strategic and operational policies and procedures

• Cryptocurrency Regulation in the Czech Republic

  Review period	Up to 1 month	Annual cost of supervision	None
  National Fees for Application	250 €	Local staff	None
  Required Equity	From 0.04 €	Physical Office	None
  Corporate income tax	twenty one%	Accounting audit	None

  How to Get a Cryptocurrency License in the Czech Republic

  Although the Czech authorities have not instituted any complex cryptocurrency licensing procedures, this does not mean that companies are exempted from the obligation to obtain a license before doing business in the Czech Republic.

  Currently, most companies need to obtain one of the normal trade licenses from the Trade License Registry. The application is relatively simple, which opens the door to doing business in other EU countries, including notifying local authorities while complying with local regulations, without having to go through endless bureaucratic procedures.

  Activities are divided into the following categories:

  Cryptos has the following types of licenses:

  Due to the accessible possibilities, EU/EEA crypto license holders do not need to obtain a Czech license, as they can simply notify the Czech authorities by providing their passport.

  The application process can take up to four months, which also includes the creation of a new company. All applicants must follow the general licensing procedures of the Trade License Registry.

  Applications can be submitted online to the Central Electronic Registration Office by the Executive Director with a secure electronic signature. Applications are processed by the competent trade licensing body chosen by the applicant.

  The following information should be provided when applying:

  All information provided will most likely be passed on to the relevant international regulators to verify the applicant's eligibility to engage in licensed crypto activities. Successful applicants are only granted a license to engage in activities authorized by the trade licensing authority. If the license granted is conditional, the licensee may only commence crypto activities after fulfilling the conditions specified by the authority.

  All licensees are required by law to report to any regulatory body when requested, and failure to meet this obligation may result in the suspension of the license for fraudulent activity.

  It should be noted that it is illegal to start licensed crypto activities without obtaining a license. Crypto companies that do not obtain a license may be considered fraudulent, face fines of up to 500,000 Czech crowns (about 20,204 euros), and be forced to cease their activities.

   

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• CzechInvest, a government agency, offers the seven-month CzechStarter incubator program, where startups receive financial support, as well as access to workshops and expert consultations.

• Blockchain Alliance Association / The Czech Alliance is committed to accelerating development and promoting the use of blockchain technology throughout the country, eliminating fraud and corruption to build confidence in innovative financial solutions

• Crypto-anarchist research institute to promote the decentralized economy, including unlimited dissemination of information and widespread introduction of crypto-based products and services

• Corporate Income Tax (CIT) – 21%

• Branch Tax (BT) - 19%

• Capital Gains Tax (CGT) - 0%-19%

• Value Added Tax (VAT) - 21%

• Social Security Insurance (SSI) - 24.8%

• Health Insurance (HI) - 9%

• Turnover exceeds CZK 80 million (approx. EUR 3,234,413)

• Total assets exceeding CZK 40 million (approximately EUR 1,617,206)

• Average number of employees: more than 50

• Czech Republic’s support for cryptocurrency firms

  Despite the government’s liberal approach to cryptocurrency businesses, Czech cryptocurrency startups and established companies have opportunities to seek support from government, related and non-governmental initiatives. Startup accelerators and incubators provide support for the development, marketing and sales of crypto products.

  First of all, all Czech crypto companies can use the Fintech CNB contact point, provided they can demonstrate how their products or services meet the definition of financial innovation. This contact point serves as an optimized communication channel aimed at improving the functioning of innovative financial market participants. Qualified companies can obtain regulatory advice by filling in the contact form. But since this service is not intended to replace professional legal counsel, we recommend that you seek comprehensive legal advice from our team of experts.

  For funding and other important aspects of your business, you can benefit from the following initiatives:

  Cryptocurrency Taxation in the Czech Republic

  Cryptocurrency companies should ensure that they can operate effectively within the existing tax system, as the way they are taxed depends on the nature of their activities, which may fall under different common law rules. Unless certain rules are repealed by EU legislation, they should not be treated differently from other businesses.

  Czech taxes are levied and collected by the tax authorities. Although the tax year corresponds to the calendar year, companies can choose the fiscal year as the tax year.

  Generally speaking, crypto companies pay the following taxes:

  The European Court of Justice ruled that cryptocurrencies such as Bitcoin are considered traditional currencies for VAT purposes, so cryptocurrency trading services (exchanges between cryptocurrencies and fiat currencies and vice versa) are exempt from VAT. Companies that sell other types of crypto products and services must register as VAT taxpayers. The tax period for newly registered VAT taxpayers is one calendar month.

  While resident companies are taxed on their worldwide income, non-resident companies are taxed only on income generated within the Czech Republic. If a company is headquartered in the Czech Republic, it is considered a resident taxpayer. Tax residents can shield their tax income in two different countries through approximately 80 international double taxation agreements.

  Audit requirements

  Currently, general audit rules apply to crypto companies, although the audit approach depends on the purpose of cryptocurrencies, as there is no uniform definition and they can be held as financial assets, reserves or derivatives. Once a company's senior management makes a decision on the classification of cryptocurrencies, they should ensure that this decision is consistently and transparently reflected in the financial statements.

  Audits are mandatory for companies that meet at least two of the following criteria:

  Companies that are required to file audited financial statements must submit a cash flow statement and a statement of changes in shareholders' equity. Annual financial statements are published in the Commercial Registry and must be filed with the tax return.

  If you think that the Czech regulatory framework could help you succeed in this innovative and lucrative market, our experienced and dynamic (RUE) team will help you navigate the rules. We are ready to provide guidance on company formation, licensing, taxation and reporting. We also offer accounting services tailored to your needs. Every member of our team guarantees efficiency, privacy and careful attention to every detail that affects the success of your business. Contact us to book a personal consultation.

Starting a Crypto Company in the Czech Republic

Located almost in the heart of Europe, the Czech Republic is known for its strategic location and a developed and open economy, with foreign entrepreneurs enjoying the same rights as Czech citizens. Today, the process of establishing a crypto company is almost the same as for establishing any other type of business, with the exception of additional compliance requirements related to AML/CFT.

The Czech business environment has several advantages:

• A strong and fast-growing economy (3.5% growth in 2021)

• The Czech Republic is a member of the European Union, which will give you access to the EU single market

• The government supports innovative start-ups through investment incentives such as the Entrepreneurship and Innovation Operations Program

• A well-educated and skilled yet accessible workforce

• The Czech Republic ranks 41st in the world in the World Bank’s 2019 “Ease of Doing Business” ranking, indicating a fairly favorable business climate (based on the ease of starting and financing a company and engaging in economic activity)

Czech companies are governed by the Commercial Companies Act 2012, which covers many aspects of the formation and operation of six types of businesses.

The National Commercial Register of Czech companies is maintained by the Registration Court and, under the 2013 law, is administered by the Ministry of Justice.

For AML/CFT purposes, financial market participants are supervised by the Financial Analysis Authority (FAU), which, in close cooperation with the Czech National Bank (CNB), is responsible for the overall supervision of financial markets in the Czech Republic. Other national supervisory authorities are the Czech Ombudsman and the Ministry of Finance.

Business Entity Type

If you want to start a fully licensed crypto business in the Czech Republic, the first thing to consider is the appropriate business structure. There are a variety of business structures you can choose from, but the most common are the Limited Liability Company (SRO) and the Joint Stock Company (AS).

Regardless of the type of business structure, every crypto company must meet the following requirements:

• Develop internal AML/CFT policies to ensure customer identification and reporting of fraud

• Find and register an office in the Czech Republic

• Hiring full-time employees in the Czech Republic

• Appoint an AML officer who will be trained on the company’s operating model and reporting requirements

• Develop data protection procedures in accordance with GDPR and other relevant laws to ensure secure data exchange with authorities

• Develop policies and procedures to ensure the safety of client funds

• All accounting records must be written in Czech

Director Request:

• Company directors can be individuals or other companies

• If the director is a natural person of a foreign country, he does not need to obtain a visa in the Czech Republic to register as a company director

• No criminal record

• Full legal capacity

• There are no legal barriers that would prevent an individual from carrying on a licensed trade business

Any documents required for company formation must be submitted in Czech. If you require a certified translator, our team at (RUE) will be happy to help.

Limited Liability Company (SRO)

A Limited Liability Company (SRO) is one of the most common legal business structures and can usually be formed in as little as three weeks. Its advantages include very low share capital requirements, potential exemption from audits, and fewer regulations compared to other legal structures.

Key features of a Limited Liability Company (SRO):

• The company name should include "Společnost s Ručením Omezeným" or its abbreviation Spol. s ro or SRO.

• Minimum share capital – 1 CZK (approximately 0.04 EUR) per shareholder

• Different types of shares can provide different amounts of capital contribution

• At least one shareholder, who can be a natural person or a legal entity. If the shareholder is a foreigner, a residence permit is required.

• Shareholders can own many types of shares

• Shareholders are liable for the company's obligations until, upon demand by a creditor, they fail to pay the amount of their capital contribution obligations as recorded in the Commercial Registry.

• At least two eligible resident or non-resident directors (with relevant financial markets education and professional experience and no criminal record)

Documents required to form a Limited Liability Company (SRO):

• A copy of the Articles of Association

• Business plan including financial statements and operating structure

• ID cards of the company's shareholders and directors

• A criminal record certificate for each shareholder and director, issued by a competent authority that proves there are no obstacles to engaging in crypto-related economic activities

• Educational qualifications of shareholders and directors

• A description of any hardware and software used to conduct licensable cryptographic activities

• Bank documents allowing deposit of share capital

• A copy of the relevant trade license

The Articles of Association should include:

• Company's trade name

• Description of the company's economic activities

• Shareholder details (identity, residential address or registered office address)

• The type of shares held by each member and the specific rights and responsibilities attached to them, when determining the different types of business shares

• The amount of capital contribution associated with the business share, including each shareholder's obligations and relevant deadlines

• Details of the funding administrator

• Authorized capital

• The number and identification details of the company's directors, and a description of their roles

• Contribution in kind (description, valuation, amount to be applied to the issue price)

• Details of the person appointed as the expert to assess the contribution in kind

A Limited Liability Company (SRO) is subject to a mandatory statutory audit if at least two of the following amounts are exceeded in the current year and the previous year:

• Net turnover – CZK 80 million (approx. EUR 3.2 million)

• Total assets – 40 million CZK (approximately 1.6 million EUR)

• Average number of employees – 50

Shareholding Corporation (AS)

This type of business entity is often chosen by business persons who intend to expand their business activities on a larger scale, as the structure allows attracting a large number of shareholders by listing shares of a company on a stock exchange under certain conditions.

Main features of a joint stock limited company (AS):

• The trade name must include the words Akciová Společnost or its abbreviation Akc. spol. or AS.

• Minimum share capital – either CZK 2 million or EUR 80,000

• It must be expressed in Czech crowns or, if the company keeps accounts in euros under a special act, in euros.

• At least one shareholder (any number)

• Shareholders are liable for the company's obligations until, upon demand by a creditor, they fail to pay the amount of their capital contribution obligations as recorded in the Commercial Registry.

• The company is responsible for the breach of contract with all its property

• Three statutory bodies – General Meeting of Shareholders, Board of Directors and Supervisory Board

Documents required to establish a joint stock company (AS):

• Articles of Association

• Business plan including financial statements and operating structure

• Identification documents of the company's shareholders and directors

• A criminal record certificate for each shareholder and director, issued by the competent authority, proving there is no hindrance to participating in crypto-related economic activities

• Educational certificates of shareholders and directors

• A description of any hardware and software used to conduct the permitted cryptographic activities

• Bank documents allowing deposit of equity

• A copy of the relevant trading license

The charter also includes the following:

• Company Name

• Description of the company's activities and objectives

• Authorized capital

• Authorized capital payment rules at the time of registration

• Details of the shares – number, par value, whether registered, how many shares, transferability and type, and associated rights (if applicable), and details of each founder’s subscription

• If the bid price will be paid through in-kind contributions, provide details on the type of in-kind contribution, identity of the investor, associated shares, price, etc.

• If the shares are to be issued as book securities, the amount of the asset account to be issued

• Number of votes, shares and voting methods at shareholders' meetings

• Information on the company’s internal structure and management, including the rules for determining the number of members of the board of directors or supervisory board

• Estimated costs of setting up your company

• Details of persons nominated by the founders as members of the company body who will be elected by the general meeting of shareholders

• Details of appointment of funding administrator

A public limited company (AS) is subject to mandatory statutory audit if at least one of the following amounts exceeds the current year and the previous year:

• Net turnover – CZK 80 million (approx. EUR 3.2 million)

• Total assets – 40 million CZK (approximately 1.6 million EUR)

• Average number of employees – 50

What You Need to Do

You can choose to go to the Czech Republic or choose a distance learning company. If you choose the latter, you will need to sign a power of attorney allowing your representative to act on your behalf throughout the process of creating your crypto company. If you decide to do this, please contact our legal experts to find out what to do next.

It can take up to four months to set up a crypto company, which also includes obtaining a trading license.

To create a licensed cryptocurrency company in the Czech Republic, you need to take the following steps:

• Check and reserve your company name

• Obtain a legal address for at least one year

• Preparation and notarization of company charter documents

• Opening a corporate bank account in the Czech Republic

• Transfer the minimum share capital to the new bank account

• Pay the state fees associated with registration – 6000 CZK (approximately 243 EUR)

• Registering your company with the Commercial Register

• Apply for a mandatory trade license from the Trade License Registry

• Registering your company with the tax authorities

• Register your company with the FAU for AML/CFT reporting purposes

The Czech Republic has yet to establish a reliable regulatory framework for commercial cryptocurrencies. However, each crypto company must obtain a regular trading license from the Trade License Register before conducting business.

Depending on the purpose of using cryptocurrency, companies can apply for any of the following licenses:

• Classic – shared between cryptocurrencies for a fee

• Fiat-exchange transactions between cryptocurrencies and fiat currencies on a commission basis

• Traditional – Intermediary for various currency transactions

• Specialized – Specific products and services related to cryptography (crypto wallets, crypto client keys, etc.)

Czech Republic

capital	population	currency	gross domestic product
Prague	10,516,707	CZK	$28,095

Taxation of Crypto Companies in the Czech Republic

In the Czech Republic, taxes are collected and administered by the Tax Office. Although the tax year coincides with the calendar year, companies can choose the fiscal year as their tax year.

Czech crypto companies should pay the following general taxes:

• Corporate Income Tax (CIT) – 21%

• Branch Tax (BT) – 19%

• Capital Gains Tax (CGT) – 0%-19%

• Withholding Tax (WHT) – 15%

• Value Added Tax (VAT) – 21%

• Social Security Insurance (SSI) – 24.8%

• Health Insurance (HI) – 9%

Cryptocurrencies are not considered legal tender, so it is recommended that they be classified as other stocks. Income generated from cryptocurrencies should be recorded as other income.

Resident tax companies are obliged to pay tax on income earned in the Czech Republic and abroad. Non-resident companies are obliged to pay tax only if they earn income in the Czech Republic. If a company is registered in the Czech Republic or its head office is in the Czech Republic, then it is considered a resident taxpayer.

Our team of dedicated and highly qualified lawyers will be happy to provide you with personalized additional support to create a fully licensed cryptocurrency company in the Czech Republic. From the very beginning of the process, you will receive expert support on company creation, the rapid development of AML/CFT legislation and taxation. In addition, if you are looking for financial accounting services, we will be more than happy to help. Contact us now for a personalized quote.

Cryptocurrency Regulation in the Czech Republic in 2023

In the Czech Republic, cryptocurrency business remains legal and is regulated only within the general legislative framework of national laws including the Trade Licensing Act, the Capital Markets Companies Act, etc. However, as a team of our experienced lawyers is closely following regulatory changes in Europe, we strongly recommend preparing for the upcoming improvements, which should be introduced by the EU in the near future and apply to all member states.

Meanwhile, the Czech Republic remains a very lively place for cryptocurrency business, academia, and crypto enthusiasts as it continues to be home to various funding projects, international events, and other initiatives aimed at promoting growth in the cryptocurrency industry.

New EU rules applicable to the Czech Republic

The Czech Republic must follow the EU authorities, who have further committed to the improvement of cryptocurrency regulation, tightening the rules applicable to crypto asset service providers (CASPs). In 2022, the Committee on Economic and Monetary Affairs approved the Markets in Crypto-Assets (MiCA) regulation for a vote by the full European Parliament and EU member states. It is expected that the provisions of MiCA will come into force before the end of 2025. MiCA is not only intended to provide legal clarity and prevent the abuse of crypto assets and the market as a whole, but also to promote the growth of innovative industries. That said, MiCA has certain limitations and currently excludes decentralized finance (DeFi) and non-fungible tokens (NFTs).

One of the several changes that Czech cryptocurrency businesses should prepare for is new legislation related to environmental responsibility, which will help cryptocurrency businesses reduce their high carbon footprint – when the legislation comes into force, major CASPs will be required to publish their energy consumption levels on their websites and share relevant data with national authorities. The European Securities and Markets Authority (ESMA) is obliged to introduce more detailed technical standards for regulation.

The European Banking Authority (EBA) will be responsible for supervising stablecoins. Stablecoin issuers operating within the EU will be required to establish sufficient liquidity reserves in a 1:1 ratio, partly in the form of deposits. This requirement will enable all stablecoin holders to obtain claims from the issuer at any time and free of charge.

MiCA is not intended to replicate the anti-money laundering rules set out in the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Directive, but the European Banking Authority (EBA) will be mandated to maintain a public register and conduct enhanced AML/CFT checks on non-qualified CASPs. Non-qualified CASPs are those whose parent companies are registered in third countries that the EU considers to be either high-risk in relation to AML activities or non-cooperative jurisdictions for tax purposes. In the future, it is expected that the EU will harmonize the AML regulatory framework by introducing a unified EU-wide AML body.

Overall, MiCA-compliant CASPs should be able to prevent or eliminate market abuse and manipulation, avoid conflicts of interest, implement procedures to prevent proprietary trading, and generally demonstrate stability, soundness, and competence in navigating markets and inherent regulation, which should ultimately build trust among investors.

Support innovative projects

In 2022, the European Union agreed on the Pilot DLT Market Infrastructure Regulation (PDMIR). This pilot provides a legal framework for trading and settlement in crypto assets, which are classified as financial instruments under the Markets in Financial Instruments Directive 2 (MiFID 2).

The pilot, applicable from March 2023 and similar to a sandbox approach, will allow safe experimentation with new technologies and serve as a means of gathering evidence for a possible permanent framework later on. The pilot is expected to be reviewed in 2026. Meanwhile, the European Securities and Markets Authority (ESMA) continues to consult on drafting guidance with the goal of developing standard formats and templates for DLT, and is now conducting a Q&A to assist with implementation.

Although the Czech Republic has not rushed to provide regulatory clarity for cryptocurrency businesses, it can be seen as a welcoming country due to the environment in which valuable connections in the cryptocurrency space are facilitated. In addition to opportunities for security experiments at the EU level, there are many ways to connect and collaborate with cryptocurrency businesses, academia, and government at the national level. From September 10 to 14, 2023, the International Conference on Cryptographic Hardware and Embedded Systems (CHES) will be held in Prague, Czech Republic. It is organized by the International Association for Cryptographic Research (IACR) and aims to provide a shared space for research on the design and analysis of cryptographic hardware and software implementations.

You may also be interested in Bitcoin Europe, which will be held in Prague from June 8 to 10, 2023. This is expected to be Europe's largest Bitcoin-only conference to date, with around 10,000 international attendees, more than 60 speakers, 100 Bitcoin company booths, and various related activities. Topics will cover freedom, community, technology, and good money.

You should also note that the following local initiatives offer support beyond the campaign:

• CzechStarter – A seven-month incubator program offered by Czech Investment Corporation, a Czech government-backed company, where startups can break into the Czech market and grow across borders by receiving funding, attending workshops and getting expert advice

• Technology Incubation project – another project of CzechInvest, supported by the Ministry of Science, should support up to 250 innovative start-ups over the next five years by providing financial support of CZK 850 million (approximately EUR 3.54 billion) in seven key areas

• Czech National Bank (CNB)’s FinTech Contact Point – a simplified communication platform with a dedicated contact form aimed at improving the functioning of innovative financial market startups

• Blockchain Connection Association/Czech Alliance – An organization promoting the development and use of blockchain technology nationwide, as well as combating fraud and corruption in the financial industry

• Crypto-Anarchist Institute – An organization that aims to promote the growth of the decentralized economy by focusing on the unlimited spread of information and the mass adoption of blockchain-based products and services

Czech Republic Cryptocurrency Licenses in 2023

In 2023, obtaining a Czech cryptocurrency license will still require applying for a regular trade license, issued by the Trade License Registry by submitting an online application form (in Czech), which includes information about your crypto company and its founders. Once the state application fee of 6,000 CZK (about 240 EUR) has been paid, the application will be considered by the General Trade Office.

The following types of trade licenses may be obtained in 2023:

• Classic – For exchanging cryptocurrencies with a fee

• Fiat – For exchanging cryptocurrencies for fiat currencies with a fee

• Traditional – Intermediary for various types of currency exchanges

• Professional – for specific cryptocurrency-related products and services (crypto wallets, crypto client keys, etc.)

To be eligible, you must open a Czech company. A Limited Liability Company (SRO) is one of the most common legal business structures in the Czech Republic, as it has the advantages of a lower minimum share capital, fewer founders, and exemption from financial audits. As in last year, crypto companies must still register a physical office in the Czech Republic and employ employees on a full-time basis, which should also include at least two directors in good health and normal condition (not necessarily residents of the Czech Republic) and an AML officer. In addition, it should also demonstrate the implementation of an internal AML/CFT policy, compliance with data protection legislation and mechanisms to ensure the safety of customer funds.

Cryptocurrency Taxation in the Czech Republic in 2023

The Czech Republic still ranks high in international tax competitiveness indices, and there are no signs of Czech tax rates increasing in 2023, which is why the country remains a favorable jurisdiction for cryptocurrency businesses. That said, you should be aware of changes initiated by the Organization for Economic Cooperation and Development (OECD) and applicable to the Czech Republic.

Last year, the OECD launched a new international tax transparency framework called the Crypto-Assets Reporting Framework (CARF), which will enable automatic reporting of crypto assets and exchange of information between international tax authorities. The CARF framework will apply to companies and individuals that provide cryptocurrency exchange services and facilitate cryptocurrency transfers (including retail payment transactions). Currently, the framework excludes cryptocurrencies that are not used as payment instruments or investments, as well as centralized stablecoins.

In terms of recent domestic changes, there are not many, but one concerns social security and health insurance. From February 2023, employers will pay a reduced tax rate of 5% for employees who qualify as members of a qualifying social group (e.g., people caring for children under 10 or a disabled person) and are employed on a part-time basis. Other tax rates and allowances should remain unchanged.

In addition, lawyers from provide legal services to obtain a Czech Republic Cryptocurrency License.