Czech Republic provides a crypto-friendly environment with clear licensing requirements and reasonable tax treatment. The country has seen growing adoption of cryptocurrency among businesses and consumers.

Crypto businesses must comply with AML requirements and EU MiCA regulation. The CNB oversees compliance.

The Czech Republic is fully adopting the European Union's Markets in Crypto-Assets (MiCA) Regulation (Regulation (EU) 2023/1114), with national implementation through the Financial Market Digitalisation Act (No. 31/2025 Coll.) [1]. Under this new framework, any entity providing crypto-asset services (CASP) must obtain a MiCA CASP license from the Czech National Bank (CNB) [2]. The license requirements are tiered based on the scope of services, primarily determined by the minimum share capital: Class 1 (e.g., order execution, advice) requires €50,000; Class 2 (Class 1 plus custody and exchange services) requires €125,000; and Class 3 (Class 1 and 2 plus operating a trading platform) requires €150,000 [2]. Key non-financial requirements include establishing a physical office in the Czech Republic (virtual offices are not accepted), ensuring full Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) compliance, and appointing an EU-based Money Laundering Reporting Officer (MLRO) [2]. The application process involves a thorough review of the business plan, internal control policies, and a detailed business continuity plan, with the CNB acting as the competent authority [2].

Cryptocurrency gains for individuals in the Czech Republic are generally treated as other income under Section 10 of the Income Tax Act [3]. This income is subject to the standard progressive individual income tax rates. The basic rate is 15%, but a higher rate of 23% applies to the portion of the tax base that exceeds the established threshold (CZK 1,676,052 for 2025) [3]. A significant, crypto-friendly amendment to the law, effective from February 2025, introduced a tax exemption for individuals [3]. Income from the sale of crypto-assets is now exempt from individual income tax if the assets were held for more than three years [3]. Additionally, the exemption applies only if the total gross income from the sale of crypto-assets (excluding electronic cash tokens) for the tax period does not exceed CZK 100,000 (approximately €4,000) [3]. Regarding Value Added Tax (VAT), the exchange of cryptocurrency for traditional currency or other crypto-assets is considered a VAT-exempt service [4]. This is based on the 2015 David Hedqvist decision by the Court of Justice of the European Union, which classifies crypto as an alternative means of payment [4]. The Czech tax authorities issued official guidance on March 31, 2022, confirming this VAT exemption [4].

Banking access for crypto businesses in the Czech Republic is generally challenging with traditional financial institutions, which often maintain a cautious stance towards the sector. However, the Czech National Bank (CNB) permits local banks to offer cryptocurrency-related services, provided they adhere strictly to Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations [5]. Consequently, many crypto-asset service providers (CASPs) rely on specialized financial technology firms and payment institutions for their operational banking needs. Crypto-friendly options include digital banking platforms like Revolut (offering business accounts for crypto transactions) and specialized providers such as Nordark, which offers dedicated IBAN accounts for crypto companies [5]. Other European crypto-friendly institutions like Swissquote Bank and Saxo Bank are also cited as options for Czech-based crypto users and businesses [5]. The general trend is a reliance on non-traditional banking solutions that are specifically designed to be compliant with the unique regulatory and risk profiles of the crypto industry.

https://www.cnb.cz/en/supervision-financial-market/legislation/crypto-assets/laws-and-regulations/ https://www.fintecharbor.com/czech-republic-crypto-license/ https://kpmg.com/us/en/taxnewsflash/news/2025/02/tnf-czech-republic-individual-income-tax-exemption-income-transfer-cryptoassets.html https://www.bdo.global/en-gb/microsites/tax-newsletters/indirect-tax-news/issue-2-2022/czech-republic-guidance-issued-on-the-vat-treatment-of-cryptocurrency-transactions https://www.nordark.com/banking-solutions/czech-republic