Every year, the number of crypto companies is growing tremendously. It is because more and more people prefer to use such assets as a means of payment, abandoning traditional work in favor of trading or mining. Exchanges and wallets can legally operate in the EU if they receive a crypto license in Czech Republic. This country has developed reasonably simple rules for regulating the crypto industry, making it very attractive for people in business worldwide.
Types of crypto licenses
Today it cannot be said that precise rules have been developed in the Czech Republic to regulate all aspects of the crypto industry. However, the country has already taken significant steps in this direction. So, a flexible licensing system has been developed here, where a company can choose the type of permit that corresponds to its activity.
Here you will be offered to issue one of 4 types of license:
- Classic – suitable for companies that exchange one type of crypto assets for others for a fee;
- Fiat – this is created for companies that want to exchange crypto assets for fiat currencies;
- Traditional – allows you to exchange cryptocurrencies for other crypto assets and fiats;
- Specialized – specific products and services related to cryptography. It includes various crypto wallets, programs for encrypting client keys, and much more.
As you can see, their license type has been developed for each area of activity of crypto companies.
If your company has already received a license in another EU country, then there is no need to obtain an additional permit in the Czech Republic. In this case, you need to notify the country’s government by providing them with a passport.
How to open a crypto company?
For your company to be able to obtain a crypto license, it must be officially registered in the country. Most often, firms will register as a Limited Liability Company, as this has minimal requirements for authorized capital, and it is possible to avoid a financial audit. If all the documents are in order, then the registration of such a company takes about 3 weeks.
Mandatory requirements include:
- Thoughtful business plan;
- Physical address registered in the Czech Republic;
- The company must employ at least 2 people;
- Employees must have no criminal record;
- Well-developed anti-fraud strategy;
- Full description of the software;
- Personal data protection procedure and much more.
To register a company, the level of trust in the founder and members of directors is of great importance. It is essential that they do not have previous convictions and have not been involved in fraud.
Also, the company must ensure complete financial security for its customers. Software must be installed here to protect personal data and crypto assets.
The main stages of opening a Limited company
Registration of a cryptocurrency company is a rather complicated process involving several stages. First, you need to check how original your company’s name is.
Next, you must get criminal records for the owner and team members. You also need to obtain a legal address for at least 1 year.
Another critical step is getting a bank account. The entire authorized capital of the company should be here, and it cannot be divided into several versions.
Next, you need to obtain a trading license. In the Czech Republic, cryptocurrencies are regulated not as electronic money but as goods. It is due to the peculiarities of the legislative framework of the country.
You also need to pay a state fee of 6000 kroons, which corresponds to approximately 243 Euros.
Additionally, you must register with the Register of Enterprises and Tax Authorities and the FAA for AML/CFT reporting purposes.
All documents must be in Czech, so you must prepare a translation in advance if you have a foreign company.
If you do not want to come to Prague to complete all the documents, you can contact our company for help. After you sign a power of attorney, our specialists will take care of all issues related to obtaining a crypto license.
Why might you be denied a license?
You may be denied a crypto license mainly because of incorrectly executed documents. To avoid this problem, you need to seek the help of a qualified lawyer.
You would be denied a license if the owner or one of the key team members had a criminal record. As a result, you need to check your partners as carefully as possible. Otherwise, all your efforts will be in vain. It would be a wrong decision to forge a criminal record, as they are carefully checked at the first stage of company registration.
Conclusion
If all documents are in order, obtaining a crypto license in the Czech Republic takes about 3 weeks. There are no strict requirements for the applicant here: all you need to do is take care of the safety of your clients and correctly complete all the documents.
