Czech Republic crypto license
If you plan to engage in professional activity using crypto assets, obtaining a crypto license is a mandatory step in this process. The crypto license in the Czech Republic is needed when there is systematic management of other people’s assets, and accumulate funds from individuals or legal entities for the purpose of their investment in cryptocurrency on exchanges.
The basic features of a crypto license in the Czech Republic
It is clear that the laws of the Czech Republic regarding activities with bitcoins and other cryptocurrencies are extremely loyal and soft compared to other countries of Europe and the American continent. Based on this premise, it is possible to predict a high level of competition within the country in this area, because the Czech Republic provides a wide range of opportunities for businessmen working with Bitcoin and other digital money. The trend of increasing interest in cryptocurrency activity in recent years persists in all developed countries of the world, so the choice of a geographical area for the development of this business should be approached responsibly. Do not forget to pay attention to several important aspects of the discovery of a crypto exchanger in the Czech Republic or another startup of this kind. In addition, the businessman is obliged to observe the principle of KYC and AML in the implementation of his economic activities. These requirements are aimed at strengthening the level of financial security, countering terrorism and money laundering in the Czech Republic.
Procedure for obtaining a crypto license in the Czech Republic
KYC and AML in the Czech Republic
KYC and AML are generally accepted international protocols that regulate the actions of financial firms. The history of AML is broader than that of KYC, and it dates back to the late twentieth century in France. In direct translation from the English acronym means «fight against money laundering». Let us recall that by «money laundering» economists mean the procedure of legalization of illegally received money. The AML policy includes several basic principles compliance with a certain percentage of the company’s cash transactions, placement of enterprise funds in several accounts, investment in securities through brokerage services, buying futures and forwards per fiat. Implementation of kyc implies the following items: monitoring of customer transactions, identification of risks by cooperation with a certain client, obtaining personal data from the customer for identification and rational customer search. It is easy to see that in some ways KYC is an integral part of AML, yet the world community continues to distinguish between the two protocols.
Prospects of crypto-currency activity in the Czech Republic
The prospects for crypto-currency activity in the Czech Republic are good. According to the public statements of the Czech National Bank, as well as the Ministry of Finance, there are no plans to adopt innovations related to cryptocurrency activities. As we have already found out, a cryptocurrency company is primarily required to comply with EU legislation, that is, KYC and AML protocols. This significantly strengthens the position of the Czech Republic as favorable for the development of information and cryptographic technologies of the state. However, it should be borne in mind that conditions attractive to cryptocurrency businessmen entail an increased level of competition in this area.