Dispelling 5 Myths about Obtaining a Cryptocurrency Licence in the Czech Republic - COREDO

Dispelling 5 Myths about Obtaining a Cryptocurrency Licence in the Czech Republic

29.11.2023

Cryptocurrencies and crypto-business have become integral parts of the modern economy. Consequently, questions about obtaining cryptocurrency licences in different countries are becoming increasingly relevant. However, on this journey, one may encounter various myths and misconceptions that can lead to misunderstanding and delay the process. Let’s debunk 5 common myths about obtaining a cryptocurrency licence in the Czech Republic.

Myth 1: The licence is issued by the Czech National Bank (CNB)

The first myth is that many believe the Czech National Bank issues the licence for crypto-business.

In reality, the licensing of cryptocurrency activities in the Czech Republic is carried out by the Trade Licensing Office. Subsequently, the Financial Analytical Office of the Czech Republic, the main supervisory body for AML regulation concerning the activities of all cryptocurrency exchanges in the country, is informed about the company’s contact person.

Myth 2: A business plan is required for the regulatory authority

The second common myth is related to the regulatory authority’s need to provide a business plan.

In reality, the Trade Licensing Office does not require a business plan to obtain a cryptocurrency licence, making the licensing process simpler than in Estonia.

Myth 3: Only EU citizens can be directors

The third myth is that only European Union citizens can be directors of companies obtaining a cryptocurrency licence in the Czech Republic.

This is not true. Czech law allows foreign citizens to hold corporate leadership positions, including crypto-companies.

The critical condition is compliance with all necessary legal requirements and providing the required documentation when applying for a licence.

Myth 4: A bank account is required for company registration and capital contribution

Another common misconception is the requirement for a bank account for company registration and capital contribution.

In reality, there is an alternative method in the Czech Republic. You can contribute the statutory capital in cash to the administrator of the cash deposit, who can be the director of the registering company. You must only open a bank account after the company’s registration.

However, please be advised that there are limitations on the amount of statutory capital that can be paid in this way.

Myth 5: Personal presence is required for company registration and licensing

Yet another common myth is the belief that personal presence in the country is required for company registration.

However, this is not the case. The registration of a crypto-company in the Czech Republic can be done remotely, without physical presence in the country. All stages, including document collection and submission, interaction with registration authorities, notaries, and obtaining the necessary licences, can be done remotely through an authorised representative with power of attorney. However, consulting only qualified specialists with experience in this process is strongly recommended.

In conclusion, by adhering to all legal requirements and providing the necessary documentation, it is possible to successfully obtain a crypto licence in the Czech Republic and start your crypto business quickly. The COREDO team is ready to assist you at all stages of this process, providing maximum support and attention to detail.

By Dmitry Vyalkov, LLM, lawyer at COREDO

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