Czech National Bank Says Crypto Authorization Does Not Remove Fraud Risk

The Czech National Bank (ČNB), the Czech Republic’s central bank, warned that authorization to provide crypto services does not eliminate fraud risk. The bank said public input and its supervisory investigations helped identify recurring traps for customers. The ČNB is supervising 11 authorized domestic providers and reviewing five crypto-service license applications filed since the MiCA transition ended July 1 . All five remain under review, and two came from firms that had applied before. July 1 was the EU’s final transition deadline for crypto-service providers, although some member states ended their transition periods earlier. The Markets in Crypto-Assets Regulation (MiCA) has no guarantee fund for losses tied to inadequate separation or safeguarding of customer crypto assets.

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