The Czech National Bank (CNB) has published an update on crypto licensing and supervision following the end of the transitional period under the European Union’s Markets in Crypto-Assets Regulation (MiCA), warning that authorisation does not eliminate investment risks. Five applications for authorisation as a crypto-asset service provider (CASP) have been received since the transitional period ended on July 1, 2026, including two repeat applications. Proceedings remain underway, and 11 domestic CASPs currently hold authorisation. Firms without the required authorisation may no longer provide crypto-asset services, although providers authorised in other EU member states may also operate in the Czech market. The CNB has ordered firms that continued operating without authorisation after the transition to cease those activities immediately. Supervision now includes inspections of authorised firms and action against unauthorised operators, supported by artificial intelligence tools and information from the public. Identified scam warning signs include false claims of regulatory approval, impersonation of former providers, rewards dependent on recruiting investors and lengthy token lockups without a clear source of returns. Suspected fraud or money laundering is referred to the police and the Financial Analytical Office. MiCA provides less protection than traditional investment services in several respects. Providers must assess clients’ knowledge, experience and risk tolerance only when offering crypto advice or portfolio management. Only two domestic CASPs currently offer advice. No guarantee fund covers losses arising from inadequate segregation or safeguarding of client crypto-assets, while technology failures, cyberattacks and lost private keys can cause irreversible losses. The CNB is expanding investor education and recommends checking providers’ regulatory status, investing only in crypto-assets whose functioning investors understand and limiting investments to amounts they can afford to lose.
Czech National Bank reviews crypto licensing and enforcement activity, warns of gaps in investor protection
The Czech National Bank has reviewed crypto licensing and supervision following the end of the MiCA transitional period on July 1, 2026, reporting five subsequent applications and 11 authorised domestic providers. It has ordered firms operating without the required authorisation to cease those activities and highlighted fraud involving false regulatory claims and provider impersonation. Investors remain exposed to limited suitability assessments, no guarantee fund for losses from inadequate asset segregation or safeguarding, and potentially irreversible technology and cyber losses.