Fintech 2026

CZECH REPUBLIC Law and Practice Contributed by: Stanislav Šimek, Vojtěch Mlynář and Jakub Dostál, BADOKH

• accounting and bookkeeping – AI-driven automa - tion tools; and • crowdfunding – platforms matching retail lenders and investors with borrowers and businesses, with only a few companies currently licensed to operate a crowdfunding platform. The fintech space is predominantly driven by start- ups, but with clear crypto-asset regulation in place, traditional players are increasingly exploring crypto- asset and tokenisation opportunities. 2.2 Regulatory Regime The regulatory regime depends on the activities per - formed. • Crypto-assets: Most crypto-asset service provid - ers are regulated under the EU Markets in Crypto- Assets Regulation (MiCA) and require a licence from the CNB. Those falling outside MiCA’s scope remain subject to the Czech AML Act and may require registration with the Financial Analytical Unit (FAU). • Payment services and e-money: Payment institu - tions and e-money institutions are regulated under the Czech Payment Services Act and require a CNB licence. This framework is expected to be substantially revised according to new EU rules on payments, with application anticipated from 2027 onwards. • Investment services: Investment firms and inter - mediaries require a licence from the CNB and are regulated under the Czech Capital Market Under - takings Act (CMUA), aligning Czech legislation with EU Markets in Financial Instruments Directive II (MiFID II) Regulation. In addition, the Markets in Financial Instruments Regulation (EU) governs trading obligations and market transparency, the EU Prospectus Regulation applies to public offers of securities, and the EU Market Abuse Regulation sets out market abuse prevention rules. • Crowdfunding and P2P lending: These platforms are regulated under the EU Crowdfunding Regula - tion, requiring a CNB licence. Depending on the business model, the Czech Payment Services Act may also apply.

• Consumer credit: Providers and intermediaries of consumer loans must comply with the Czech Con - sumer Credit Act and may require a CNB licence. • AML: Entities qualifying as obliged persons under the AML Act must implement customer due diligence, transaction monitoring and suspicious activity reporting obligations. The adopted EU AML package will reshape the framework from 2027 onwards. • DORA: The EU Digital Operational Resilience Act imposes requirements on financial institutions and their technology service providers to implement and maintain digital resilience. 2.3 Compensation Models Compensation models in fintech depend on the nature of the service provided. For investment service providers, commissions are allowed only where the benefit enhances the quality of the service or is necessary for the provision of the service, and must not impair the firm’s duty to act in the client’s best interests. For portfolio management and independent investment advice, commissions are prohibited entirely, with the exception of minor non- monetary benefits. Crypto-asset service providers are subject to conflict- of-interest rules and typically operate on a fee-based model charged to customers (trading fees, spreads). These providers are usually prohibited from receiving any benefit for routing client orders. Payment service providers use a variety of pricing models, per-transaction fees charged to merchants being the most common. Regulated entities must provide clients with pre-con - tractual disclosure in sufficient time to review, com - pare products and make an informed decision. Where automated systems are used, clients have the right to request human intervention. Disclosure obligations are stricter where the client is a consumer. 2.4 Variations Between the Regulation of Fintech and Legacy Players Czech legislation generally does not distinguish between fintech and legacy players.

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