Are cryptocurrencies legal in Czech Republic?

As a questioner interested in cryptocurrencies, I often come across queries regarding their legality in various jurisdictions. Specifically, regarding the Czech Republic, one might inquire: "Are cryptocurrencies legal in Czech Republic?" The answer is yes, cryptocurrencies are legal in the Czech Republic. While there is no specific licensing system tailored specifically for cryptocurrencies, entities offering services related to them, such as exchanges or storage, are required to undergo a standard authorization process. The Financial Analysis Unit (FAU) and the Czech National Bank (CNB) oversee this space, and cryptocurrencies are classified as commodities rather than legal tender. This classification means that companies operating in this sector must follow certain requirements, including registration with the Trade License Register and adhering to anti-money laundering and know-your-customer (AML/KYC) policies. Despite these regulations, the Czech Republic remains an attractive destination for those seeking to establish a cryptocurrency business due to its favorable legislation, low labor costs, and proximity to European markets.