CZECH REPUBLIC Law and Practice Contributed by: Ondřej Mikula, Jan Šovar and Markéta Klabouchová, FINREG PARTNERS
or most crypto-assets must be authorised under the relevant regime (the CMBA, DLT Pilot or MiCA). Platforms trading other assets, such as certain NFTs, may only be subject to the notifica - tion regime. For “financial instruments” , there are also differ - ences depending on the category (eg, bonds, emission allowances, structured finance prod - ucts and derivatives can only be traded on OTFs). Additionally, trading contracts for differ - ence (CFDs) for retail clients was restricted by the CNB in 2019. 6.3 Impact of the Emergence of Cryptocurrency Exchanges The emergence of cryptocurrency exchanges and the significance of the crypto sector has significantly influenced regulation, leading to the adoption of new or revised regulations. AML Due to the rapid growth of crypto-assets, the Czech Republic gold-plated some provisions of the fifth AML Directive. As a result, all VASPs have been subject to AML/CFT legislation in the Czech Republic since 2021. The regulatory regime for VASPs is expected to shift in 2025 from a notification procedure to an authorisation procedure. MiCA and DLT Pilot Regime The most important regulatory change lies in MiCA, which has been effective since 30 Decem - ber 2024. It regulates the public offering and pro - vision of services related to most crypto-assets (excluding “financial instruments” and other regulated asset classes like deposits). For trad - ing and settlement of crypto-assets qualifying as “financial instruments” , the DLT Pilot introduced a dedicated regulatory regime.
As a result, anyone wishing to operate a crypto- asset exchange or trading platform must obtain the appropriate authorisation (see 6.1 Permis-
sible Trading Platforms ). Decentralised Exchanges
Crypto-exchanges operating fully decentralised and disintermediated are exempt from MiCA. However, most existing platforms are unlikely to qualify for this exemption, as they involve some centralisation (eg, earning trading fees through a person or entity facilitating the trading). The European Commission will assess DeFi and the regulation of decentralised crypto-asset sys - tems over the next four years, potentially lead - ing to dedicated regulation for these systems. 6.4 Listing Standards Listing standards vary by trading system and asset type. Listing on unregulated exchanges, like decentralised crypto-asset exchanges, has no specific regulatory framework, while listing “financial instruments” under the CMBA or cryp - to-assets under MiCA is highly regulated. The CMBA The CMBA requires trading venue operators to have transparent rules for trading, admission of “financial instruments” and access to the trading venue. Admission criteria, order execution and trading rules must be objective, ensuring fair and orderly trading. In addition to the CMBA rules, each operator establishes its own listing rules, typically pub - lished on their website (eg, Rules and Regula - tions of the Prague Stock Exchange that are available here ). Trading in MTFs and OTFs is generally subject to less onerous requirements than on regulated markets.
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