Eternity Law International — News — REGISTRATION OF A CRYPTOEXCHANGE IN THE CZECH REPUBLIC

REGISTRATION OF A CRYPTOEXCHANGE IN THE CZECH REPUBLIC

Published:
October 7, 2020

Cryptocurrency is a digital currency controlled by cryptographic methods (international electronic money created using data encryption).

Fiat is the traditional currency (dollar, euro, pounds), which has a physical shell in the form of banknotes and coins. Advantages: officially recognized currency, subject to exchange at a fixed equivalent. Disadvantages: less protected from the factors of decentralization, compared to the cryptocurrency. Has control from the states.

Earned crypto money is stored on the blockchain, an encrypted chain of algorithms, which, in turn, is divided into blocks, and stored on several computers at the same time. The principle of operation is similar to the program of downloading files, like torrent.

In recent years, the popularity and demand for cryptocurrency has aroused growing interest in the crypto industry. To create a company in this area, you need a license for cryptoexchange / cryptoexchanger / ICO.

The Czech Republic is one of the countries in Europe with advanced economic and political trends. On the territory of the state of cryptocurrency, you can freely pay for any goods and services – food, housing, clothing, leisure, etc.

HOW TO REGISTER A CREATIVE EXCHANGE IN THE CZECH REPUBLIC

The first time to register a crypto exchanger is the easiest in the Czech Republic. Having gained experience in the field of cryptocurrency, you can register your own stock exchange for cryptobusiness. Depending on the specific type of activity, the types of licenses are conditionally divided into:
• classic – exchange of cryptocurrency on each other;
• Fiat – with the ability to change real money for cryptocurrency and vice versa;
• traditional – control over the procedure for manipulating currency of all types;
• specialized – the influence extends only to the work of the crypto business.

WHAT WILL BE REQUIRED FOR REGISTRATION?

Of paramount importance is the choice and verification of the name for your crypto firm. After – you need a package of documents identifying the future owner, along with a certificate of no criminal record. Necessary requirement – legal address.

Duration – one year. This is followed by opening an account for business, recruiting employees, buying software and technical equipment.

In the final stages of registration, you need to have with you the entire package of documents relating to the company, pay state fees and submit the collected papers to the appropriate structures of the country.

THE POINT OF VIEW OF THE CZECH GOVERNMENT WITH RESPECT TO CRYPTIC BUSINESS IN THE CZECH REPUBLIC

The Czech code of laws does not interpret digital currency as a monetary unit. but as a commodity. Cryptobusiness in the Czech Republic does not require a license. But for international work with cryptocurrency it is possible to obtain a license – EMI.

Digital money is not subject to special taxes. But for paying cryptocurrency VAT is charged. Otherwise, the legal entity – the buyer is forced to pay value added tax instead of his supplier.

CZECH NATIONAL BANK ON CRYPTO-VALUE AND RELATED ACTIVITIES

The official opinion of the CNB states that Bitcoin is not included in the definition of non-cash currency. Accordingly, cryptocurrency is a symbolic money that does not have a fixed value, in contrast to the officially recognized currencies.

Bitcoin exchange can not be considered currency, so the control of the activity of cryptocurrency LCH does not exercise.

The head of the currency control department of the NCHB expressed fears that Bitcoin would become a tool to bypass the payment sanction on online games. Given this possibility, the Ministry of Finance was proposed to modernize the charter relating to the control of gambling.

WHAT DO WE NEED TO TAKE INTO ACCOUNT DURING REGISTRATION OF CRYPT-CURRENCY ACTIVITIES IN CZECH REPUBLIC?

With the growing popularity and extensive use of cryptocurrency, it is not within the jurisdiction of the state. Moreover, the NCB has established a ban on opening an account for crypto exchangers and cryptobirds.

In this regard, it will be necessary to open accounts for companies related to cryptocurrency in a different jurisdiction than in the Czech Republic.

It is necessary to take into account the requirements of the Ministry of Finance of the Czech Republic, according to which cryptocurrency activity is impossible without verifying the identity of each participant in this process.

The law requires sellers and buyers of cryptocurrencies in the Czech Republic to strictly comply with the rules of KYC and AMI. The firm must maintain and send reports on all stages and process of activity.

The requirements are due to the state’s fear of the number of tax evaders, fraudulent activities in the field of finance and terrorism.

SOLUTION OPTIONS

The workaround for registering a crypto exchanger / cryptoexchange is other countries with more progressive conditions.

FOR EXAMPLE:

1 United Kingdom – cryptocurrency laws have not yet been amended, but the state does not prevent cryptographic activities in all its forms. There is the possibility of withdrawal of digital money in fiat.
2 Estonia – Issues licenses for all existing cryptocurrency manipulations.
3 Malta recently adopted three statutes: on virtual financial assets, on innovative technologies and services, and on the operation of digital innovations (The Virtual Financial Assets Act, VFA; The Innovative Technology Arrangements and Services Act; The Malta Digital Innovation Authority Act, MDIA).
4 Luxembourg – issues EMI licenses that include all the ability to work with cryptocurrencies.
5 Switzerland – depending on the project issues a license or FINMA or SRO.
6 Belarus – issues licenses for crypto-activity, but asks not to withdraw funds outside the country.

The Japanese crypto business is considered to be leading and expensive in terms of the number of state exchange trades. In America, the license is specific and specified for each individual type of manipulation of digital money.

In view of the above, the state should be chosen to register the crypto business very carefully. Determine the options will help competent experts of Eternity Law International.

We successfully work more than 5 years in forty two countries. We provide professional advice on finance, corporate law, international licensing, and international planning. We are pleased to help you.

You could be interested

Starting a company in the videochat industry

The videochat industry is growing rapidly. For many entrepreneurs wishing to open a business in this industry, the actual question is how and where to register such a company. Romania is the world leader in the videochat market, with a regulated videochat activity. In this article, we will analyze the main aspects of a webcam...

Hedge Fund in Switzerland

One of the most prestigious states for investment start-ups is Switzerland. In the last decade, many investors decided on establishing their professional activities here. Also, the state has obtained a status of a beneficial hub for the fund managers working here, and the majority of the facilities are formed as οffshore hedge funds in Switzerland....

Company registration in Slovenia

Slovenia is at the highest level of development among the Balkan countries economically. That is why foreign entrepreneurs want to live in this state and conduct business there. Legally, foreigners are practically unlimited in investments. A non-resident is allowed to own 100% of the organization’s property, however, only on the condition that it is related...

Sports Betting License in Cyprus 2023

A decade ago, Cyprus effected the law No. 106(i) 2012 (as revised in 2019) which addresses betting operations in the country through land-based and remote platforms. Therefore, all spοrts gaming operations are governed by the law. E-casinοs, e-pοker, and e-bingo are now legally restricted. The law establishes two categories of sports betting license: Class A, which...

Supporting the Regulatory Process for Acquiring a Small Payment Institution License in Poland

The financial arena stands as an ever-evolving, complex battleground, replete with both avenues for prosperity and formidable obstacles for those daring to venture into the realm of financial services. In the intricate mosaic of European financial markets, Poland emerges as an alluring beacon of opportunity for those intent on establishing their presence in this dynamic...

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...

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