The Principle of Operation of Crypto Exchanges in the Czech Republic
By Space Coast Daily // May 16, 2022
In the past few years, the Czech Republic has put a lot of emphasis on introducing innovative technologies in the work of many of its industries. It has already given a powerful impetus to the development of the economy and social benefits. It is one of the reasons why to get a cryptocurrency exchange license in Czech Republic.
Here you can harmoniously develop your business and not be afraid of problems from regulatory authorities.
Benefits of doing business in the Czech Republic
It is a relatively small country in Central Europe, part of the EU. It has a beautiful culture and architecture, rich history, and is famous for its delicious beer.
It was part of the sociological camp for a long time, so it took a lot of effort to stabilize the economy, improve the social standard of living, and democratize all institutions. It is worth noting that the work done was not in vain, and today the Czech Republic is one of the countries with the most favorable investment climate. Here they tried to create good conditions for the development of medium and small businesses.
Anyone can register a business. Often this can be done remotely. Understandable and straightforward taxation conditions are also created here. Moreover, the tax rate is relatively low.
In addition, a lot of work has been done here to combat corruption. Now all issues are resolved exclusively in the legal field, which simplifies the creation of private businesses as much as possible.
As for the crypto industry, here, such assets are equated to goods. For a crypto exchange or wallet to work here legally, they must obtain a license. It is worth noting that the permit obtained here allows you to work in other EU countries legally.
This country has tried to develop rules that allow anyone who wants to get a cryptocurrency exchange license in Czech Republic.
There are 4 different types of licenses. The choice depends on what kind of activity you plan to conduct. Understanding all the definitions can be quite tricky, so contacting a specialist for help in advance makes sense. The most common type is traditional. It allows you to control the order of manipulation of all kinds of currency. You can exchange crypto assets for other crypto-assets and fiat currencies.
To obtain a license, you must apply to the appropriate regulatory body. It will give you a complete list of documents that need preparation. The list may differ depending on the type of license you are interested in.
Both the founder of the company and his/her authorized representative can apply for a license. Citizenship does not matter, making it easy for a foreign business to operate in this country. If you decide to act through a proxy, you must prepare a power of attorney in advance.
After obtaining a license, the company must regularly provide a report on its activities. The state must have a separate person responsible for cooperating with government agencies and performing various tasks, such as providing access to clients’ data if they are suspected of fraudulent activity.
The likelihood that your license will be revoked will depend on the professionalism of this specialist. The slightest mistake in a report or an ambiguous answer to a question can lead to your company being suspected of fraud. That is why the choice of a person who will hold this position must be approached very carefully. It is vital that he previously had experience in a similar situation and had no problems with the law; he/she was not involved in fraud.
If you have a significant exchange that works with many users, it makes sense to create a whole team of security specialists. It will allow you to identify and quickly stop any methods of fraudulent activity both on the part of customers and other employees of the company.
Basic requirements for the applicant:
■ Only a legal entity can obtain a permit;
■ The company must have a bank account;
■ There must be at least 2 people working here (one of them must be financial security specialist);
■ No criminal record.
As you can see, the state authorities do not put forward any complex or impossible requirements for the applicant. The only difficulty that may arise is that the NCB establishes a ban on opening accounts for cryptocurrency exchanges. As a result, you need to apply to other organizations (belonging to another country, such as Lithuania). For most crypto enthusiasts, this does not bring big problems.
It is also necessary that the company has a physical address where a team of specialists will work. It is where a security specialist should be working.
As you can see, getting a cryptocurrency exchange license in Czech Republic is not much more complicated than opening any other business. Every crypto enthusiast can easily do this.