Czech National Bank Reviews Five Crypto License Applications Under MiCA

The Czech National Bank (CNB) is reviewing five crypto service license applications filed since the European Union’s Markets in Crypto-Assets Regulation (MiCA) transition ended July 1, while supervising 11 authorized domestic providers.

Two applications came from firms that had applied before. All five remain under review. July 1 marked the final EU transition deadline for crypto service providers, although some member states ended their transition periods earlier.

Authorization in another EU country can also give a firm access to the Czech market after it completes cross-border notification. A Latvian authorization for Noah LV SIA illustrates how a national MiCA license can cover services in other member states through that process.

A license does not give crypto customers every protection they may expect from traditional investment services. MiCA generally does not require a crypto service provider to assess a customer’s knowledge or risk tolerance unless it offers advice or manages a crypto portfolio.

MiCA also has no guarantee fund covering losses caused by inadequate separation or safeguarding of customer crypto assets. That limit applies whether a provider received its authorization in the Czech Republic or uses a license from another EU member state to serve Czech customers.

“People must remain cautious about where they put their money,” said CNB Bank Board member Jan Procházka. The CNB is inspecting authorized providers and has ordered firms operating without the required permission to stop. Its review of the five pending applications continues.