CASP License in the Czech Republic 2025: 10 Steps to Comply with the New Legislation for Crypto-Assets Service Providers.
Until the end of 2024, cryptocurrencies and crypto assets in the Czech Republic were generally not regulated - they were considered goods. In general, this status does not change, but now this area is regulated by regulations MiCA (Markets in Crypto-Assets) - from 30 December 2024. This regulation is a comprehensive regulatory framework for cryptoassets in the European Union, which will have a significant impact on companies issuing cryptoassets.
In the Czech Republic, Act No. 31/2025 Coll. on the digitalisation of the financial market, which comes into force on 15 February 2025, has given the Czech National Bank (CNB) powers in this area. The law is drafted in such a way that the CNB can immediately begin operating in the cryptocurrency market, so there is no need to wait for anything. For issuers of crypto assets, for example, it introduces the following new obligations:
1.???? Registration in the EU— issuers of crypto assets must be legal entities registered in the EU. Until now, many have bypassed this obligation by registering in tax havens.
2.???? White paper— issuers are required to develop and publish a detailed white paper on the crypto asset.
3.???? Professional conduct— issuers must act honestly, fairly and professionally in the interests of crypto asset holders.
4.???? Transparent communication– all communication with crypto asset holders must be clear, honest and not misleading.
5.???? Managing Conflicts of Interest– Publishers must identify, prevent, manage and disclose potential conflicts of interest.
What assets are covered by the new MiCA provision?
MiCA applies and sets specific requirements for the following types of tokens:
1.???? asset related, such as currencies (US dollars or euros), gold, silver, etc. – we usually call them asset-backed fungible tokens, or so-called electronic money tokens (EMTs)
2.???? other tokens (ART) – crypto assets other than asset-backed tokens.
Issuers of EMT and ART tokens are subject to stricter requirements. In addition to the need to develop a White Paper, there is an obligation to notify or obtain permission (license) from the competent authority, which in our case is the Czech National Bank.
What assets are not subject to the MiCA rule?
The following types of tokens are not subject to MiCA regulation:
1. Non-fungible tokens (NFT)
These unique and non-fungible tokens are generally not subject to MiCA regulation. However, there are exceptions, such as large collections of NFTs that may exhibit signs of fungibility.
2. Financial crypto assets
These are tokens that are already regulated by current EU regulations, such as financial instruments and structured deposits within the meaning of the MiFID directive. If this is your case, please contact us – we will prepare the authorization process for you in accordance with MiFID II.
According to the definition of financial instruments under MiFID II. This relatively broad category, which is not subject to MiCA, includes crypto-assets denominated as linked to instruments traded on a capital market. Generally, crypto-assets that fall into this category are those that meet the following criteria:
·??????? Reversibility– the instruments are negotiable, although not necessarily freely negotiable
·??????? Standardization– there is a certain degree of standardization that ensures interchangeability of tools
·??????? Capital Market Tradability– instruments that are generally suitable for organized trading on the capital market, whether they are owned by them or expressed through crypto assets.
The latest tools include, for example:
1.???? Transferable securities- shares of companies, bonds, any other securities that give the right to buy or sell such transferable securities or that result in a monetary settlement determined by reference to transferable securities, currencies, interest rates or yields, commodities or other indices or measures
2.???? Money Market Instruments- options, futures, swaps, forwards and other derivative contracts
3.???? Shares of collective investment enterprises
4.???? Derivatives – derivatives for the transfer of credit risk, financial contracts for difference and emission allowances.
3. Other crypto assets excluded from the scope of MiCA regulation
You will probably be pleased to know that certain parts of the MiCA regulations, specifically Sections II, III, and IV, do not apply to cryptoassets without an identifiable issuer. Under certain conditions, the MiCA regulations also exempt utility tokens from some of their requirements. Additionally, if these conditions are met, airdropped tokens and mining rewards, pooling, or staking are exempt from the regulations.
The regulation also does not apply to tokens used only in a limited network of merchants. The condition is that the holder of the crypto asset only uses it in exchange for goods and services in a limited network of merchants who have a contractual agreement with the offering entity.
It is important to note that while some types of tokens are generally exempt from MiCA regulation, there may be special cases or conditions where they are subject to regulation. Therefore, it is always necessary to evaluate each case individually - we recommend consulting with our specialists who have been working in this field for many years and can explain everything to you and give practical advice.
Crypto asset issuers and related service providers have different regimes
Following the entry into force of the Law on Digitalization of the Financial Market, adopted by the Senate several days ago, the CNB will adopt:
·??????? announcement of a white paper on an asset-backed cryptoasset ( ART ) or electronic money token ( EMT ),
·??????? applications for authorization of an ART issuer that is not a bank and applications for approval of the white paper by an ART issuer that is a bank,
·??????? announcement of the EMT issuer's intention to publicly offer the EMT or seek admission to trading of the EMT and announcement of the EMT issuer's white paper,
·??????? applications for a license to operate as a crypto asset service provider - CASPlicense in Czech Republic and notifications from organizations that already have license from CNB for the provision of crypto asset services.
CASP's activities mainly include the following types of services:, requiring CASP authorization from the CNB:
·??????? storage and management of crypto assets on behalf of third parties
·??????? operation of a trading platform for crypto assets (crypto exchange)
·??????? exchange crypto assets for fiat currency
·??????? exchange of crypto assets for other crypto assets
·??????? execution of orders related to crypto assets on behalf of third parties
·??????? placement of crypto assets
·??????? accepting and transmitting orders related to crypto assets on behalf of third parties
·??????? Crypto asset consulting.
The token issue itself is not covered by CASP services.Issuers of these crypto assets have other obligations under the MiCA regulation, such as:
·??????? development and publication of a detailed white paper on crypto assets in accordance with the MiCA regulations,
·??????? notification of the CNB via the application,
·??????? obtaining permission for certain types of tokens (e.g. asset-backed tokens or e-money tokens).
Therefore, cryptoasset issuers are subject to a different regime than cryptoasset service providers (CASPs). While CASPs focus on providing services related to existing crypto assets, issuers are involved in the creation and issuance of new crypto assets. If you plan to both issue and provide any of the above services (usually, for example, an exchange), then you will need a CASP permit from the Czech National Bank, which we will be happy to provide.
A temporary regime is in effect.
Anyone who was authorised to provide crypto-asset related services prior to 30 December 2024 under a trading licence (reportable trading for business purpose No. 81 in accordance with Schedule No. 4 Trade License Act: "provision of services related to virtual assets") and applies for a licence to operate a CASP in accordance with Article 63 of the MiCA Regulation before 31 July 2025, will be able to continue to operate this activity on the basis of this authorisation until the date of entry into force of the decision on this application, but not later than 1 July 2026.
For the vast majority of services related to virtual assets, the entity providing them is an obligated entity under the AML Law (Section 2, Paragraph 1, Letter l) and must be registered. Registration consists of declaring free trade in the field of activity No. 81 "Provision of services related to virtual assets". For the purposes of the Anti-Money Laundering Law, a person providing services related to a virtual asset is a person who, as an entity of his business, buys, sells, holds, manages, transfers or acts as an intermediary in the purchase or sale of a virtual asset, provides financial services related to the offer or sale of virtual assets, or provides other similar services related to a virtual asset. As a rule, this is a person who acts as an intermediary in the investment or exchange of virtual assets.
The FAU's long-term interpretation of the Anti-Money Laundering (AML) Act indicates that an obligated entity providing services related to virtual currency is not a person who:
If a cryptocurrency entrepreneur complies with the registration obligation, he must subsequently develop a written a system of internal policies and corresponding risk assessment in accordance with the AML Law. The term for fulfilling this obligation is 60 days from the date of the emergence of the obligated person. In the future, it is necessary to begin to fulfill in practice other obligations stipulated by the AML/CFT Law.
Notification of changes in legislation
The Financial and Analytical Office hereby, in accordance with the implementation of the principle of good governance, draws the attention of persons providing services related to virtual assets, as obligated persons within the meaning of the provisions of paragraph 2 of Article 2.1 letter l) of Act No. 253/2008 Coll., on certain measures to combat money laundering and terrorist financing (hereinafter referred to as the "AML Act"), that from 2025 there will be a fundamental change in the legal regulation of the virtual asset services sector in relation to:
The Financial Intelligence Unit (FAú) of the Czech Republic is the main authority responsible for monitoring compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations in the virtual asset sector. From 30 December 2024, it will receive expanded powers regarding service providers dealing with crypto assets that are not regulated by MiCA. Companies and individuals dealing with virtual assets are required to obtain authorisation from the FAú if their activities are related to the provision of financial services in this sector.
The regulator will regularly publish clarifications and updates on its website, providing an overview of the changes and their implications for businesses. Pursuant to Act No. 253/2008 Coll., the obligated persons subject to regulation are entities providing services related to crypto assets, including the purchase, sale, storage, management or transfer of virtual assets, mediation in their exchange, and the provision of financial services related to their offer and sale. The regulation also applies to companies engaged in the resale of virtual assets, their issuance and gratuitous distribution. At the same time, cryptocurrency mining itself is not considered a service requiring registration, but the subsequent sale of mined assets or their storage for third parties may require a permit.
In the context of tightening regulation of the cryptocurrency market in the Czech Republic, companies and individuals working with virtual assets need to take into account the requirements of the FAú and promptly adapt to the new regulations. An important step is to prepare for the licensing process, which includes an analysis of compliance with the requirements, filing documents and implementing AML procedures. Regulated United Europe provides full legal support, helping to adapt the business to new regulatory requirements, develop internal policies and successfully go through the process of obtaining a FAú permit.