Crypto license in Czech Republic
The essence of cryptocurrency in the Czech Republic is this. Cryptocurrency is called one of the types of digital finance. This currency is created on the basis of data encryption, and is controlled by cryptography. Fiat, on the other hand, means traditional currencies (for example, dollar or pound sterling). Fiat has a material form: coins and banknotes. On the positive side, the traditional currency is officially recognized and can be exchanged on a fixed basis. In comparison with cryptocurrency fiat has a number of drawbacks, the main ones are: a low level of protection from decentralization factors and the subordination to state control. Thus, to minimize the taxable base, and more convenient use of cryptocurrency by the Clients, you can create a crypto exchanger in the Czech Republic.
Cryptocurrency storage in the Czech Republic
To store cryptocurrency – digital money, the so-called blockchain is used, that is, an encrypted chain of algorithms divided into blocks. These blocks are distributed to different computers, allowing blockchain storage on multiple media at the same time. Due to the fact that the data in the blockchain is decentralized, this technology allows for a high level of safety and proper distribution of production capacity. The block chain is a slightly modified database into which information can be added, but not later. The way blockchain technology works is similar to the way torrents work for downloading files.
Licensing of crypto-currency activities in the Czech Republic
Licensing of cryptocurrency activities in the Czech Republic is not difficult. Bitcoin trading in the Czech Republic does not require any authorization and is not subject to government control. However, to conduct cryptocurrency transactions with other countries it is necessary to obtain a special EMI license. Depending on the characteristics of a particular activity, licenses are conditionally divided into the following types:
- Classic: imply the exchange of one cryptocurrency for another;
- Fiat: provide the ability to convert real currencies to digital (or vice versa);
- Traditional: control the procedure of manipulation of currencies of all possible types;
- Specialized: Their impact extends only to the crypto business.
Money of the future
How to get a crypto license in the Czech Republic?
To obtain a crypto license in the Czech Republic there are a number of conditions, it is necessary to have the registration of a legal entity, authorized capital and operating office. The company’s constituent documents must be prepared in accordance with the requirements of the regulator and the banking institution in which it is planned to open an account. Availability of officially employed employees with economic education and work experience in this field. Business plan, public offer, description (in Czech or translated) of all technical and software tools for the project. Prove compliance with AML-legislation. Provide the regulator with the necessary package of papers to obtain a license and pay the state fee.
Taxation of cryptocurrency activities in the Czech Republic
Taxation of cryptocurrency activities in the Czech Republic under the supervision of the National Bank. As mentioned above, according to the Czech Central Bank, cryptocurrency activities are not subject to taxes, however, profits made by the company in the form of digital currency are subject to capital gains tax. It is mandatory for a cryptocurrency company or an individual who receives a profit (incurring losses) to declare these indicators in tax reports and pay tax. In the Czech Republic, the income tax rate for natural persons and individual entrepreneurs is 15 per cent and applies to factor income (i.e., income from economic factors of labour production, entrepreneurial ability, natural resources and capital).
Whereas legal persons are obliged to give 19% to the state treasury. Dividends received by shareholders, income from the procedure of donation of immovable objects and income received as inheritance are not the basis for taxation. All Czech citizens and foreigners residing in the territory of the country for less than 183 days (continuous or not) must prepare and submit a declaration every year, which includes all tax data. Remember that evading any tax payments set by the state entails responsibility. In the case of the cryptocurrency business, measures may be applied that imply that the organization that deals with Bitcoin is responsible through its own supplier.