What are the Types of Crypto Licenses in the Czech Republic?

The Czech government plays a key role in implementing new crypto laws and regulatory changes, ensuring that the country remains competitive and compliant within the EU. Compared to other European countries, the Czech Republic offers a more favourable environment for crypto businesses, with efficient processes and attractive tax benefits. The cryptocurrency legal status in the Czech Republic is clear, with crypto activities being lawful under the current regulatory framework.

In the broader context of cryptocurrency regulation across European countries, the Czech Republic stands out for its progressive approach and is often seen as more favourable for crypto businesses than other European countries.

For entrepreneurs and established financial firms looking to operate in this jurisdiction, understanding the transition from the legacy “Virtual Asset Service Provider” (VASP) model to the new “Crypto-Asset Service Provider” (CASP) regime is essential for maintaining compliance and securing EU-wide passporting rights.

On this page, LegalBison will break down everything you need to know about the types of crypto license in the Czech Republic under the MiCA regulatory regime.

Overview of Crypto Regulation in the Czech Republic

Historically, crypto activities in Czechia were governed primarily by the AML Act (No. 253/2008 Coll.) and the Trade Licensing Act, which treated crypto-assets as commodities rather than legal tender. This meant that businesses could operate with a relatively simple registration with the Trade Licensing Office. For certain crypto business activities, a financial license may be required to ensure legal authorisation and compliance with regulatory standards.

However, the implementation of MiCA (Regulation (EU) 2023/1114) and the national Digital Finance Act (Act No. 31/2025 Coll.) has introduced a more rigorous, centralised oversight model. The process for obtaining a license in the Czech Republic now includes specific categories such as the VASp license and czech crypto license, which are required for crypto companies and cryptocurrency companies to operate legally.

Under this new framework, crypto companies must meet strict regulatory requirements, including AML/KYC obligations and internal compliance protocols. Companies transitioning from a VASP license to a CASP license must also verify their regulatory status to ensure eligibility under the updated regime. The new licensing regime covers a wide range of business activities, including exchange, custody, and transfer of crypto-assets.

The Czech National Bank (ČNB) is now the designated competent authority responsible for the authorisation and supervision of all crypto-asset service providers. This shift ensures a future-proof economy that protects retail holders and ensures market integrity across the Union.

Types of Crypto Licenses and Licensing Process in the Czech Republic

Currently, the Czech Republic recognises two primary regulatory statuses, depending on whether a firm is transitioning from the old system or entering the market under the new MiCA-compliant framework.

• As part of the company registration and licensing process, businesses must be listed in the trade license register, which serves as official confirmation of their permit to operate;
• Legal entities, including both individuals and companies, can apply for a license, making the process accessible for new crypto projects;
• To operate legally, it is essential to obtain the appropriate license, maintain a corporate account or bank account for operational readiness, and ensure all documentation is available in the Czech language;
• Internal policies, the appointment of an AML officer, robust security measures, and a comprehensive business plan are crucial for compliance;
• Due diligence, criminal record checks, and establishing a business relationship are mandatory components of KYC/AML compliance.

The Financial Action Task Force sets the AML standards that guide these requirements.

VASP (Virtual Asset Service Provider) License (Legacy Framework)

The VASP license, issued by the Czech Ministry of Industry and Trade, is the legacy framework for crypto businesses. It covers a range of activities, including operating as a crypto exchange or cryptocurrency exchange, and requires registration in the trade license register. VASP license holders must comply with local AML and KYC regulations, and the license is suitable for both individuals and legal entities.

CASP (Crypto-Asset Service Provider) License (MiCA Framework)

The CASP license, introduced under the MiCA Regulation, is the new standard for crypto businesses in the Czech Republic and across the EU. It covers a broad range of activities, including operating a crypto exchange, cryptocurrency exchange, and providing payment services as a payment institution. The CASP framework also regulates operations involving fiat currencies and electronic money, with separate licensing required for electronic money services. The regulation aims to create a unified legal framework for crypto asset markets and related services.

• Class 1 (Basic Services): This foundational tier authorises basic services with a defined share capital requirement;
• Class 2 (Exchange and Custody Services): This class authorises both exchange and custody services, including managing crypto assets, providing a broader scope of activities for licensed entities.

1. VASP (Virtual Asset Service Provider)

The VASP status is the legacy framework that existed before the full application of MiCA. The VASP license was the main way to operate legally in the Czech Republic for crypto businesses, and it was commonly referred to as a crypto license in Czech under the previous regulatory environment.

The Czech Ministry of Industry and Trade was responsible for issuing VASP licenses and overseeing compliance. Both individuals and legal entities, such as locally incorporated companies, could apply for a VASP license to engage in crypto activities.

Once approved, the company or individual was listed in the trade license register, which served as the official record of VASP registrations.

• Status: It is no longer possible to obtain a new VASP registration; it has been fully replaced by the CASP authorisation procedure;
• Transitional Period: Existing providers who were registered before December 30, 2024, and submitted a CASP application by July 31, 2025, may continue to operate under their old trade licenses until July 1, 2026, or until their new CASP license is granted or refused;
• Limitations: Unlike the new CASP license, a legacy VASP registration is strictly jurisdictional and does not grant “passporting” rights to provide services in other EU Member States.

2. New CASP Framework (Crypto-Asset Service Provider)

The CASP framework is the standard for 2026 and beyond. It covers a broader scope of services and imposes stricter operational, organisational, and prudential requirements.

• Authorisation: All new market entrants must obtain a CASP license from the ČNB before commencing activities;
• Passporting: A major advantage of this license is the ability to offer services throughout all 27 EU member states without needing additional local authorisations;
• Scope of Services: The CASP framework covers 10 specific services, ranging from custody and exchange to providing investment advice and managing crypto-asset portfolios. The CASP license allows the operation of a cryptocurrency exchange and participation in crypto asset markets. It also authorises custody services and managing crypto assets as part of the regulated activities;
• Requirements: Applicants must prepare comprehensive internal policies, appoint an AML officer, implement robust security measures, and submit a detailed business plan. Due diligence, criminal record checks, and establishing a business relationship are required as part of KYC/AML compliance. Both individuals and legal entities can apply for a CASP license. The process also covers launching a new crypto project, ensuring that applicants operate legally and meet all regulatory requirements.

3. License Categorisation by Class

Under the MiCA regime, CASP authorisations are divided into three distinct classes based on the complexity and risk of the services provided. Each class has specific minimum capital requirements.

The MiCA framework is designed to regulate crypto asset markets across the EU, providing a unified legal structure for these services.

Substance and Anti-Money Laundering Requirements for Czechia CASP

To obtain a CASP license, the applicant must demonstrate a genuine local presence in the Czech Republic. This is to ensure that the ČNB can effectively supervise the entity and its management.

• Legal Entity: The applicant must be a legal person (typically an s.r.o. or a.s.) with its registered office and place of effective management in the Czech Republic;
• Resident Management: At least one director of the company must be a resident of the European Union;
• Fit and Proper Personnel: Members of the management body must be of good repute and possess appropriate knowledge and experience. They must not have criminal records related to money laundering or financial crime;
• Physical Office: The business must maintain a functional, physical office suitable for operations (not merely a virtual mailbox), accessible for inspections by the regulator;
• Corporate Account: Opening a corporate account or bank account with a Czech bank is recommended for operational readiness, though it is not a strict prerequisite for licensing;
• Payment Institution: If the company intends to offer payment services, it must comply with requirements applicable to payment institutions under Czech and EU law;
• Fiat Currencies and Electronic Money: Handling fiat currencies (such as EUR, USD) or electronic money requires appropriate licensing and strict adherence to national and EU regulations;
• Security Measures and Internal Policies: The company must implement comprehensive security measures and internal policies covering AML/KYC, risk management, cybersecurity, and operational resilience;
• AML Officer: Appointment of a dedicated AML Officer is mandatory to oversee AML/KYC policies, report suspicious activities, and liaise with financial authorities;
• Business Plan: Preparation of a detailed business plan is required as part of the application process, outlining operational, compliance, and risk management strategies;
• Compliance Infrastructure: Companies must appoint a local AML Compliance Officer (MLRO) and establish robust policies for KYC/KYT, conflict of interest, and client asset segregation.

Comparison: VASP vs. CASP in the Czech Republic

The Czech government plays a central role in overseeing the transition from VASP to CASP, ensuring that all crypto businesses comply with updated regulatory and tax obligations.

Additionally, the Financial Action Task Force (FATF) standards continue to shape AML and CFT requirements for crypto asset service providers, influencing both legacy and new licensing frameworks.

Summary

The transition to the CASP framework represents a “higher bar for entry” but provides Czech crypto businesses with unprecedented access to the entire European single market. While legacy VASPs have until mid-2026 to finalise their transition, new players should prepare for a rigorous 4-to-8 month application process with the Czech National Bank to secure their position in the evolving digital finance landscape.

Get in touch with LegalBison today to kickstart the registration process for your CASP company in the Czech Republic and seize all the advantages firsthand.