Remote VASP serving residents in Czech Republic

VASP Activities (Virtual Assets Only): For services exclusively involving virtual assets (e.g., crypto-to-crypto exchange, crypto custody), the Czech Republic requires registration as a trade license (živnostenské oprávnění) under the Trade Licensing Act, specifically for "Provision of services related to virtual assets." This is generally considered a "free trade" (volná živnost).

Regulator Name: Financial Analytical Office (FAÚ) of the Ministry of Finance.

Regulator/Enforcing Body: European Public Prosecutor's Office (EPPO) leads major fraud cases in Czechia, with Czech Police (NCOZ) executing operations at EPPO's request; Czech Public Prosecutor's Office also involved. International cooperation includes Europol, but U.S. Department of Justice is not a primary enforcer in specific Czechia contexts.

AML/CFT fines by the FAÚ for failures in compliance, which can apply to any "obliged entity," including crypto service providers. However, large, publicly detailed fines against prominent crypto platforms are not as common as in some other countries.

Act No. 253/2008 Coll., on Certain Measures Against Legalisation of Proceeds of Crime and Financing of Terrorism (the "AML Act"): This is the primary national law transposing the EU AML directives. It was amended to include VASPs as obliged entities.

Act No. 455/1991 Coll., the Trade Licensing Act, was amended effective April 1, 2025, and further amendments will take effect July 1, 2025, affecting the regulatory framework for virtual asset service providers under Czech AML law.

Virtual Asset Exchange Services, defined as providing services for the exchange between virtual assets and fiat currencies or between one or more forms of virtual assets, are no longer subject to minimal regulation but now require specific licenses and adherence to the comprehensive EU MiCA Regulation in Czechia.

Custodial Wallet Services: Providing services to safeguard private cryptographic keys on behalf of customers, to hold, store, and transfer virtual assets.

Transfer of Virtual Assets: Facilitating transfers of virtual assets.

Identification of the Customer:

Verification of Identity:

Enhanced Due Diligence (EDD):

Source of Funds/Wealth (When Applicable):

Adopted and Effective Date: Fully implemented and enforced as of December 30, 2024, listed among jurisdictions where the Travel Rule is active.

VASPs Covered: Applies to Virtual Asset Service Providers (VASPs) handling virtual asset transfers, requiring collection and sharing of originator and beneficiary details for AML/CTF compliance.

Entity Targeted: Alexander Vinnik (primary alleged operator of BTC-e/WEX), and associated individuals/entities involved in money laundering. Violation Type: Operating an unlicensed money transmission business, money laundering (estimated billions of dollars), and wire fraud using Bitcoin. Outcome: Disruption of a major global cryptocurrency-based money laundering operation. Seizure of significant assets. Conviction and ongoing prosecution of key individuals.

Entity Targeted: Companies or platforms operating without the required licenses (e.g., for payment services, investment services) in the Czech Republic, or those promoting fraudulent schemes. These are often foreign entities without a Czech presence or clear regulatory status. Violation Type: Offering financial services (which the ČNB deems to include certain crypto-related activities) without proper authorization/license, or promoting questionable investment schemes. Penalty Amount: No direct financial penalty from the warning itself, but it can lead to further investigation by other authorities or legal action if unauthorized activity continues. Outcome: Public awareness, potential cessation of unauthorized activities, groundwork for further regulatory or criminal action if ignored.

ČNB Warnings List (in Czech, look for "Upozornění ČNB" or "Varování ČNB"): https://www.cnb.cz/cs/cnb-jako-regulator/dohled-financniho-trhu/upozorneni-cnb/

Criminal activities: Fraud, money laundering, tax evasion.