Eternity Law International — News — Operation of a cryptocurrency exchange company in Czech Republic

Operation of a cryptocurrency exchange company in Czech Republic

Published:
September 1, 2022

The entities operating in the FinTech domain are progressively setting up in the Czechia – an EU state with a strong economy and blockchain-friendly environment. Here crypto assets are regarded as an economic good or commodity rather than a standard unit of value of a currency. Although it is not a formal means of payment, the Central Bank issued 40 approvals to Czech banks to deliver crypto-related services as long as they adhere to anti-money-laundering regulations. This is an overview of the core peculiarities of formation of a cryptocurrency exchange company in the Czech Republic.

Crypto assets dealing in Czechia

To start your operation in the blockchain domain in the Czech jurisdiction, you are obliged to pass a licensing process ruled by the regulative body – the central bank. It is necessary to emphasize that it`s not secure to act without a legal permit for crypto businesses. If doing so, there is a likelihood of being deemed by the authorities as an illegal enterprise and being prosecuted. Still, the procedure of acquiring an official permission for operating with crypto assets is transparent and does not entail any excessive red tape. 

Once the license is obtained, an entity is empowered to issue coins, open e-wallets and provide payment offers. The status of being licensed for performing operations in the crypto domain guarantees the business’s solidity and responsibility. But, the range of the offerings delivered by an entity is strictly supervised by the regulative body.

Czech crypto exchanges: spectra of services 

FinTech firms are empowered to issue e-funds if the general issuance amount does not excel 5 Million EUR (in fiat equivalent) in one month. The entity falls under the remit of PSP (payment service provider) restraints and the general monthly “limit” should constitute the maximum of 3 Million EUR when delivering cash deposit or withdrawal, an electronic payment or a transaction carried out through online services. Czech cryptocoins exchanges differ from PSPs by keeping customers’ accounts, that are applied for EMI-funds receipt in payments for goods/services, money storage, their exchanging, or trading.

Crypto firms or, in other words, ICO, should acquire an SPI license to stay compliant with the law. The license allows a market participant to conduct crypto-traditional currency exchanges, trade, and keep customer accounts. This variant best fits for businesspersons who are looking to open and develop their firm quickly. For the issuance of e-funds, market participants should obtain appropriate permission – SEMI or EMI licenses.

Generally, the license gives a legal permit to operate within the EU member states. The most beneficial aspect of doing business there is that it is sufficient to inform the regulative body, with no extra permissions and red tape.

Formation of crypto exchanges in Czechia

Under the applicable legit structure, crypto exchange services may be carried out with official permissions – i.e. licenses. Generally, no stand-alone controls are applied for undertakings in Czechia if no payments are executed or service providers trade derivatives of digital funds. Special permission is granted to all entities that adhere to the next obligations:

  • A business owner has no criminal conviction;
  • A business is formed in a duly manner – with offices, the contribution of initial capital, and an appropriate organizational-legal form;
  • Employees and senior management with appropriate education and expertise are hired;
  • An overview of company activity, and IPO for the project are drawn up;
  • A formal papers package is ready and the commercial account in a local bank is set up;
  • Proofs of being compliant with AML law are in place — internal and external procedures for client information protection, etc. are applicable.

With Eternity Law International, you can form an entity and acquire a legal permit for your firm without red tape and long expectations. Please contact us for details for establishing crypto exchanges in the Czechia or other jurisdictions.

If you have any questions or intend to open crypto company in this jurisdiction, contact us. Our experts have a huge expertise in buying and selling businesses, as well as licensing.

You may also view new offers in categories Cryptocoins and licensing of cryptocurrency operations, Ready-made companies, Banks for sale and Licenses for sale.

You could be interested

Crypto license in Cuba

All VASPs that function in Cuba must get permission. Crypto license in Cuba is a document giving the official right to perform various operations with virtual assets and offer its services there. This permit is accessible for individuals and companies. Its validity period is one year; however, if needed, permission can be renewed. Licenses for...

Business Establishment in China

Legal persons in China have special limited legal capacity. Unlike other European countries, where commercial structures have rights to perform any activity and carry out all required transactions, in China direction of work is clearly indicated in Statute and enterprise’s operational certificate. However, business establishment in China is promising and lucrative as it is a...

High-risk businesses payments processing

One of our specialties is High-risk payment processing. We serve high-risk merchant companies with the help of international banking partners and a wide range of opportunities for establishment of offshore systems. Today we are service providers for almost any high-risk business. Our company offers high-risk payment gateway to high-risk businesses in the following areas of...

Crypto license in Sweden

Entrepreneurs who wish to obtain such a permit as a crypto license in Sweden may establish a company locally and make use of all benefits and privileges that blockchain technologies industry provides. To make establishment of Swedish cryptocurrency firms carefree and correct, we recommend that you contact specialists who know all the features of the...

Corporate taxes in Croatia

Croatia is one of the best nations for the establishment of business because of its economic stability, excellent geographical position, simple process of company registration and, of course, favourable taxation regime. Before starting a business in Croatia every entrepreneur ought to know all subtleties of taxation in commerce activity. Corporate Income Tax in Croatia is...

Overview of a regulatory and legal regime for blockchain in the EU

The EU executive, the Cοmmission, recognizes the significance of transparency of regulatory and legal regime for blockchain. Fields related to cryptocoins are getting more popular nowadays as the virtual currency market is now being regulated by the law. The EU demonstrates support for established regulative norms for blockchain regulation aiming to prevent legit and regulative...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360