Nov 18, 2025
How to manage cross-border legal compliance with Anywhere.legal
Licensing FinTech Systems in the Czech Republic
When your innovative FinTech solution crosses borders, precise regulatory compliance becomes a survival necessity. This article provides direct and practical answers on what startups and investors must prepare for to ensure cross-border legal solutions in the Czech Republic and ensure smooth and fast expansion.
Regulation and Trust: Strategic Foundations for Investors
FinTech startups are overseen by the Czech National Bank (CNB), which regulates the entire financial market, including payment institutions and capital market traders. For investors, regulatory preparedness (Compliance Posture) is key, as failure in licensing, AML/KYC protocols, or GDPR can lead to massive fines and destruction of company value.
Limited official cross-border support by CNB means that FinTech companies aiming for rapid international expansion must actively seek robust private platforms that can ensure legal compliance in multiple jurisdictions simultaneously.
Licensing Process in the Czech Republic: Payment Services (ZPS)
For FinTech models handling client funds or executing transactions, a license under the Payment System Act (ZPS) is mandatory.
Small Player Regime (PPSMR)
A simplified regime called Small Payment Service Provider (PPSMR) is ideal for startups with limited transaction volume.
Regulatory Limit – Growth Trap: The critical limit is the average of performed payment transactions, which must not exceed 3 million EUR monthly. Since the CNB licensing procedure lasts 3–6 months, unplanned growth without timely application for a full license means the necessity to pause operations. This regime does not require initial capital but requires liability insurance.
Full License (PI/EMI) for Expansion
A full Payment Institution (PI) or Electronic Money Institution (EMI) license is necessary for more complex models (E-wallets, card issuance).
Capital Requirements: A full license requires initial capital, the amount of which is dynamic and constantly monitored by CNB. The process lasts typically 3 months (max 6 months), with an administrative fee of CZK 50,000 upon application.
Criteria | PPSMR (Small Scale) | Full PI/EMI License |
|---|---|---|
Payment Limit (monthly average) | Max. 3 mil. EUR8 | No limit |
Initial Capital | Not required (insurance needed)10 | Required (dynamically set by CNB)12 |
EU Passporting Options | Limited5 | Full (EU Passporting) |
Investment FinTech and Capital Requirements (MiFID II)
For FinTechs focusing on trading, asset management, or robo-advisory, the Capital Market Undertakings Act (ZPKT), implementing MiFID II, applies. Capital requirements are significantly higher:
Limited license OCP: Initial capital EUR 125,000.
Full license OCP (highest mandate): Required initial capital EUR 730,000.
Capital Adequacy: This is not a one-time fee but a requirement to have this amount constantly available to cover risks.
Comprehensive Compliance: AML/GDPR and Risk Measurement
The biggest risk in terms of financial penalties is horizontal compliance in anti-financial crime and data protection.
AML/KYC: All regulated FinTech companies are reporting entities and must conduct thorough Customer Due Diligence (CDD) and continuous transaction monitoring. Failure to comply with client identification and verification duties can lead to fines up to CZK 10,000,000.
GDPR: Processing sensitive data requires embedding security into the development of IT systems (Privacy by Design). Fines for GDPR violations can reach up to 4% of global annual turnover and in the Czech Republic, the Office for Personal Data Protection (ÚOOÚ) has already imposed fines in the hundreds of millions (e.g., 320 million CZK for Avast).
Key FinTech Risks and Legal Solutions
Risks and Sanctions | Business Impact | How Anywhere.legal Helps |
|---|---|---|
Unmanaged AML/KYC risk management | Fines up to 10,000,000 CZK, damage to investor trust | Definition of the legal scope and verified lawyer assignment – Start your case directly at Anywhere.legal. |
Incorrect licensing assessment in multiple jurisdictions | Operational interruption upon reaching PPSMR limit (€3M/month) | Cross-border representation with a transparent price cap – Contact us via Anywhere.legal and receive tailored legal support. |
Violation of GDPR and data protection rules | Fines up to 4% of global turnover, loss of reputation | Local expert verification and document preparation (GDPR, AML) – Use our tool to determine the scope of your case to define your matter and select the right lawyer. |
Missing third-party Due Diligence | Risk of exposure to partner fraud (e.g., Wirecard) | Quality assurance through a verification process with global partners |
Need international legal assistance? Connect with us via Anywhere.legal.
Cross-border Compliance Management with Anywhere.legal
Multinational companies and investors do not want to deal with “email hell” and uncertainty about pricing when managing international legal tasks. Anywhere.legal transforms this complexity into an efficient and transparent process:
AI Scoping for Confidence: The platform uses AI to read documents and transform input data into a structured legal case. AI-assisted scope definition leads to immediate cost transparency and speeds up the initial case handling.
Price Cap and Global Network: Anywhere.legal provides access to verified lawyers in over 90% of countries. The platform uses AI Pricing and a price cap to agree on fixed prices and deadlines, addressing the demand for predictable costs for complex tasks across dozens of countries.
By combining expertise and an innovative digital approach, the platform ensures businesses are prepared not only for domestic audits but also for complex cross-border challenges.
Frequently Asked Questions – Common legal questions about licensing FinTech systems
How long does it take to obtain a full Payment Institution (PI) license?
Processing a complete application takes 1–2 months, and the licensing procedure at the Czech National Bank usually lasts 3 to 6 months. It is critical that the application is submitted on time to avoid risks of unauthorized business activity.
What are the main differences between PPSMR and a full license?
The key difference is the transaction limit (PPSMR max 3 million EUR per month) and capital requirements. A full license (PI/EMI) requires initial capital and allows full EU Passporting, which is essential for international expansion.
Do you need international legal assistance?
Connect with us via Anywhere.legal.What fines does FinTech face for AML/KYC failures?
Fines for non-compliance with AML obligations are severe. Failure to fulfill obligations regarding client identification and verification can lead to fines up to 10,000,000 CZK.
What is Privacy by Design in the context of GDPR for FinTech?
Privacy by Design is a principle requiring that personal data protection (GDPR) be integrated into the design and development of all IT systems and applications, not just added later.
How does Anywhere.legal guarantee price and scope when expanding into a foreign jurisdiction?
The platform uses AI Scoping for quick and accurate definition of the task’s scope. It then provides a transparent price cap negotiated with verified legal experts in the international network, eliminating uncertainty about costs and deadlines.
Contact us via Anywhere.legal and obtain tailored legal support.
