Press releases
19. 10. 2026
  • Regulation, supervision

MiCA: Three months after the transitional period for crypto-asset service providers ends, new applications are up, but the risks of investing in crypto-assets remain

Following the end of the transitional period under the EU Markets in Crypto-Assets Regulation (MiCA), the Czech National Bank (CNB) is processing new applications for authorisation as a crypto-asset service provider (CASP), supervising firms that have obtained authorisation and taking action against entities operating without the required authorisation. It has been supervising issuers of crypto-assets for almost two years. At the same time, the CNB is expanding its educational activities aimed at protecting consumers, as fraudulent practices involving crypto-assets are becoming ever more sophisticated and increasingly targeting vulnerable groups.

The CNB has received five new applications for authorisation as a CASP since 1 July 2026, when the transitional period for the provision of crypto-asset services under MiCA ended. Two of these are repeat applications from entities that had previously applied for authorisation. The administrative proceedings are under way.

There are currently 11 domestic CASPs authorised in the Czech Republic. Entities without authorisation may no longer carry on activities in the crypto-asset market. “The transitional period has ended and some firms have had to leave the market, but the risks to investors have not disappeared. People must remain cautious about where they put their money,” said CNB Bank Board member Jan Procházka. “Following the initial wave of applications, we have moved into the normal course of supervision. We are processing new applications for authorisation, inspecting authorised firms and taking action against those that continue to operate without authorisation. We are assisted in this by artificial intelligence tools as well as suggestions from the public.” Entities authorised in other EU Member States may, however, also operate on the Czech market.

Since MiCA entered into force, four notifications of crypto-asset white papers have been duly submitted to the CNB under Title II of MiCA. In accordance with MiCA, the white papers were communicated to ESMA and published in its register. The CNB is also currently processing two applications for authorisation as electronic money institutions. Both applicants intend to actively issue e-money tokens (EMTs).

MiCA provides clients with less protection than is available to traditional investors

MiCA places a large share of the responsibility on clients themselves. Crypto-asset service providers are not required to use an investment questionnaire to assess a client’s knowledge, experience or risk tolerance. As a result, they may offer crypto-assets even to individuals for whom this type of investment is unsuitable. They are subject to this requirement only when providing advice on crypto-assets or portfolio management of crypto-assets. However, only two of the 11 domestic CASPs currently offer one of these services, namely advice on crypto-assets.

The greater responsibility placed on clients themselves when choosing a crypto-asset service provider is also evident from the fact that, unlike for investment services, there is no guarantee fund to cover the loss of assets resulting from inadequate segregation of clients’ crypto-assets from the provider’s own assets or inadequate safeguarding of those crypto-assets. The technological and cyber risks are also higher than for traditional investing, particularly because of crypto-assets’ dependence on digital infrastructure. Losses may be caused, for example, by a cyberattack, a failure of the technology used, an error in the execution of a transaction, or the loss or theft of access credentials or private keys. In some cases, such losses may be irreversible.

One aspect, by contrast, is more straightforward for clients than in the case of traditional investment services: a CASP may deal with clients only through its own employees, not through an external intermediary or tied agent, as is possible in other financial sectors. However, the borderless online environment increases the risk that, instead of dealing with what they believe to be a regulated provider, clients may in fact be dealing with a fraudster.

Unauthorised offers of crypto-assets and crypto-asset services have not disappeared overnight

Within its statutory powers, the CNB assesses whether the activities of a particular entity constitute the unauthorised provision of crypto-asset services or an offer of crypto-assets to the public without the conditions laid down in MiCA having been met. In response to such conduct, the CNB may impose a fine, suspend or prohibit the offer to the public of a specific crypto-asset, suspend or prohibit the provision of crypto-asset services, suspend or prohibit marketing communications, or order the immediate cessation of the activities. Where firms continued to provide crypto-asset services after the end of the transitional period without obtaining the required authorisation as a CASP, the CNB ordered them to cease their unauthorised activities immediately. The CNB may initiate administrative offence proceedings against entities that refuse to cooperate and continue to offer crypto-asset services without authorisation, as well as against entities that offer crypto-assets to the public without meeting the conditions laid down in MiCA.

Potential clients of CASPs should therefore always verify that they are entering into a contractual relationship with a regulated provider rather than a fraudster. You can find the list of Czech crypto-asset service providers and the list of foreign providers authorised to provide crypto-asset services in the Czech Republic on the CNB website.

Supervisory experience reveals the most common traps for clients

Based on information received from the public, its own supervisory investigations and findings from licensing and enforcement proceedings, the CNB has identified a combination of warning signs that may appear in suspicious offers of crypto-assets or crypto-asset services. The more such signs a single offer contains, the greater the risk that it is a scam:

  • Targeting vulnerable and inexperienced people: The offer targets senior citizens, minors, people on parental leave or people with no financial experience who are seeking rapid and unrealistic returns on their savings.
  • “Empty” crypto-assets: The token carries no rights, or the promised right is linked to a platform that has not yet been launched or authorised. Alternatively, it is unclear where the promised return is supposed to come from, which may be indicative of a Ponzi scheme.
  • Staking as a delaying tactic: Genuine on-chain staking has a clear economic purpose, namely validating transactions, and a short token lock-up period, typically ranging from hours to weeks. It is suspicious if tokens are locked up “for staking” for months or years without a clear source of the promised return. A long lock-up period delays the point at which the investor is supposed to be paid, while the risk of a fall in value increases in the meantime.
  • Partnership and referral programmes: If the reward depends mainly on bringing in additional investors rather than on the project’s genuine economic activity, this is a typical sign of a pyramid scheme. There is also a risk of involving your own family and loved ones in the scheme.
  • Crypto-asset loans with no clear purpose: The issuer “borrows back” from clients the crypto-assets it previously sold to them, without the economic purpose of the loan being clear.
  • Links to gambling: The return is generated from money lost by other players, or the model itself resembles a bet: anyone who fails to complete a task loses their deposit to those who complete it.
  • False claims of authorisation or supervision: The provider falsely claims to have been authorised by the CNB or another supervisory authority or creates the impression that its activities or the crypto-assets it offers have been approved or otherwise assessed by such an authority. The aim is to give clients the impression that the offer is trustworthy and subject to supervision.
  • Misuse of the name of a former provider: Fraudsters use the brand or name of a firm that previously provided crypto-asset services under a trade licence, often using a slightly altered domain name, such as “.cz” instead of “.com”, or referring to its former authorisation in order to gain clients’ trust. The client then either loses the money invested immediately, supposedly because it “did not arrive”, or in a more sophisticated version, is drawn into a seemingly genuine platform where the withdrawal of funds is conditional on the payment of additional fees. Ultimately, even the original investment is not returned.
  • Activities conducted from abroad: The CNB has repeatedly encountered cases that appeared to constitute the provision of genuine services but in fact showed signs of fraud aimed at extracting money from less experienced people seeking rapid returns on their funds.

Where fraud or money laundering is suspected, the CNB not only uses its own supervisory and enforcement powers but also passes the information to the Police of the Czech Republic and the Financial Analytical Office.

The CNB issues recommendations for the public

In addition to the supervisory practices described above, the CNB is expanding its educational activities in the area of investment literacy. Most recently, it has prepared a list of basic rules that every potential investor in crypto-assets should follow. For example, you should only invest in crypto-assets whose functioning you understand, and only amounts you can afford to lose. One of the basic rules of investing also applies to crypto-assets: the promise of high returns goes hand in hand with a high risk of losing your money. Further practical recommendations and warnings about the most common risks are summarised on the CNB website (in Czech only): “12 things you should know about crypto-assets”.

Petra Vlčková
CNB Spokeperson

Note: The Markets in Crypto-Assets Regulation (MiCA) is the EU regulation governing the crypto-asset market. It replaces the previously unregulated environment with a single set of rules applying throughout the EU. Firms offering crypto-asset services require authorisation as crypto-asset service providers (CASPs). In the Czech Republic, this authorisation is granted by the CNB, which also supervises compliance with the applicable requirements.