CEE Legal Matters

Author: admin

  • Licencing of Crypto-Asset Providers in Czechia

    The Czech Republic has recently implemented new regulations for crypto-asset service providers, marking a significant step in aligning its legal framework with European Union standards. The Act on Digitalisation of the Financial Market (ZDFT), effective as of 15 February 2025, introduces comprehensive rules for the rapidly evolving digital finance sector. This article delves into the main features of the new law, its practical implications, and the specifics of the Czech regulation in the area of digital finance and crypto-assets.

    Key regulatory changes

    The ZDFT responds to the challenges associated with the application of key European regulations, namely:

    • Digital Operational Resilience Act (DORA): Regulation (EU) 2022/2554 focuses on enhancing the digital operational resilience of the financial sector.
    • Markets in Crypto-Assets Regulation (MiCA): Regulation (EU) 2023/1114 establishes a harmonised legal framework for crypto-asset providers across the EU.

    These regulations aim to foster stability and security in digital financial transactions, and the ZDFT serves as the foundation for their application within the Czech Republic.

    MiCA and the scope of regulation

    MiCA introduces strict requirements for crypto-asset service providers operating within the EU. It categorises crypto-assets into three main types:

    1. Asset-Referenced Tokens (ARTs): Crypto-assets pegged to a basket of assets to maintain stability.
    2. E-Money Tokens (EMTs): Tokens serving as digital alternatives to traditional fiat currencies.
    3. Other Crypto-Assets: A broad category that includes most non-fungible tokens (NFTs) and utility tokens.

    Under MiCA, service providers dealing with these assets must comply with stringent transparency and disclosure obligations. This includes preparing detailed business plans outlining technical features, risks and investor rights.

    The role of the Czech National Bank

    The Czech National Bank (CNB) assumes a central role as the primary regulatory authority under both DORA and MiCA. The CNB is responsible for overseeing compliance with the new rules and supervising crypto-asset service providers and other digital finance entities.

    The key powers and responsibilities of the CNB include:

    • Supervision and oversight: Monitoring compliance with DORA and MiCA regulations.
    • Incident reporting: Receiving reports of incidents under DORA, as the Czech Republic has opted not to establish separate Computer Security Incident Response (CSIRT) teams.
    • Interim measures: Imposing specific interim measures to prevent market abuse, including the ability to order the freezing of assets or funds in sanction proceedings.
    • Enforcement fines: Levying enforcement fines for non-compliance with corrective measures, up to approximately EUR 200,000 (CZK 5 million) per fine, with an aggregate limit of approximately EUR 800,000 (CZK 20 million).
    • Maintenance of registers: Maintaining informative registers of white papers, stablecoin issuers and crypto-asset service providers.
    • Sanctions for offences: Imposing sanctions for violations of DORA, MiCA and the ZDFT.

    Licensing and fees

    As of 15 February 2025, entities providing crypto-related services in the Czech Republic are subject to specific licensing requirements, while the CNB oversees the licensing process. The following fees are imposed for applications (no additional fees are required as of now):

    • Crypto-asset service providers (CASPs): CZK 20,000 (approx. EUR 800)
    • Issuers of asset-linked tokens (ARTs and EMTs): CZK 50,000 (approx. EUR 2,000)
    • Application for a licence to provide virtual asset services (VASP): CZK 10,000 (approx. EUR 400)

    Licensing requirements for crypto-asset service providers

    Entities seeking authorisation as Crypto-Asset Service Providers (CASPs) must submit a detailed application to the CNB, including:

    • A business plan detailing the types of crypto-asset services to be offered, target markets and marketing strategies.
    • Proof of compliance with prudential safeguards under MiCA Article 67.
    • Governance structure documentation, demonstrating sound internal controls.
    • Financial stability evidence, proving that management has the required knowledge, expertise and integrity.
    • Risk management frameworks, ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
    • ICT security documentation, outlining cybersecurity protocols as required by the Digital Operational Resilience Act (DORA).

    These stringent requirements aim to ensure that only well-prepared and financially stable entities enter the market, protecting both investors and the broader financial system.

    Penalties for non-compliance

    The ZDFT prescribes a range of penalties for offences related to DORA and MiCA violations. While the Czech Republic has not opted for criminal sanctions, the financial penalties can be significant.

    • DORA violations: Maximum fine of approximately EUR 2 million (CZK 50 million) for breaches related to risk management, business continuity, notification obligations and digital resilience testing.
    • MiCA violations:
      • Natural persons: Maximum penalty of approximately EUR 4,700,000 (CZK 118,475,000) or three times the amount of the undue benefit.
      • Legal persons: Maximum penalty of approximately EUR 14,100,000 (CZK 355,425,000), 15% of total annual turnover, or three times the amount of the undue benefit.

    Specifics of crypto-asset services

    The ZDFT specifies the application of MiCA requirements within the Czech legal framework, linking it to existing laws such as the Payment Transactions Act and the Insolvency Act. Service providers must periodically inform the CNB of relevant information, including submitting officially audited financial statements.

    The Act also addresses the competence of service providers, requiring them to possess knowledge of crypto-asset regulations, the ability to explain the nature of crypto-assets and the capacity to provide appropriate recommendations.

    Conclusion

    The implementation of the Act on Digitalisation of the Financial Market in the Czech Republic represents a decisive move towards regulated digital finance. As of 15 February 2025, entities providing crypto-related services must now navigate the licensing requirements, including the new CASP licence, and ensure compliance with stricter operational and cybersecurity standards. While the Czech Republic has opted for financial penalties rather than criminal sanctions, the potential fines for non-compliance, reaching millions of euros, underscore the importance of adhering to the new regulations. Service providers must prioritise preparing comprehensive documentation, strengthening internal controls, and ensuring their staff possess the necessary expertise to navigate this evolving regulatory landscape. The Czech Republic’s approach, while adhering to EU standards, also emphasises a practical perspective, ensuring that even smaller entities can comply with the new requirements.

    By Lukas Tomanek, Senior Associate, JSK, PONTES

  • New Tariff Methodology for Natural Gas Transmission Adopted

    Serbian Energy Regulatory Agency (AERS) has adopted the Tariff methodology for access to the natural gas transmission systems, which is now harmonized with the Commission Regulation (EU) 2017/460 of 16 March 2017 establishing a network code on harmonised transmission tariff structures for gas (NC TAR).

    The Tariff methodology differentiates three entry points in a transmission system and three exit points from a transmission system, with 50% : 50% split of approved income between the entry and exit points: (i) entry points from another transmission system, (ii) entry point productions and (iii) entry point gas storage; (i) exit point domestic consumption, (ii) exit point interconnector and (iii) exit point gas storage.

    It determines the following multiplicators: (i) 1.1 for quarterly capacity, (ii) 1.2 for monthly capacity, (iii) 2 for daily capacity and (iv) 2.2 for intraday capacity; while the seasonal factors are distributed for each month, with the lowest factor of 0.48 for monthly, daily and intraday capacity in June and highest factor of 2.08 for the same capacities in January. For reverse flow capacity, the tariffs shall be 10% of the corresponding capacity for the physical flow capacity.

    The whole Tariff methodology can be found in the Official Gazette 12/2025, which was published on 7 February, which is the day when the methodology entered into force so that the transmission system operators which apply the regulated prices are obliged to apply rules set out by the methodology for the next determination of the prices.

    By Jelena Gazivoda, Senior Partner, Nikola Djordjevic, Partner, and Marko Mrdja, Senior Associate, JPM & Partners

  • Erdem & Erdem Advises Neapco on Acquisition of Hedrive

    Erdem & Erdem has advised Neapco Turkey Otomotiv Anonim Sirketi on the acquisition of Hedrive Otomotiv Teknoloji Sistemleri Sanayi ve Ticaret Limited Sirketi. 

    Neapco is a supplier of driveline solutions in Turkiye.

    The Erdem & Erdem team included Partner Tuna Colgar, Managing Associate Melissa Balikci Sezen, and Associates Nil Gulyasar and Ilayda Salkim.

  • Clifford Chance Advises SMBC Group on JPY 80 Billion Samurai Loan for EPH

    Clifford Chance has advised Sumitomo Mitsui Banking Corporation as the sole coordinator, sole bookrunner, and mandated lead arranger on a JPY 80 billion samurai loan for Energeticky a Prumyslovy Holding.

    Sumitomo Mitsui Banking Corporation is a Japanese multinational banking financial services institution owned by the Sumitomo Mitsui Financial Group.

    Energeticky a Prumyslovy Holding is a Czech Republic-based energy company.

    According to Clifford Chance, this landmark deal is the largest debut samurai loan for a global corporate borrower since the financial crisis and cements SMBC Group’s leading role in the samurai loan market. Samurai loans enable non-Japanese companies to access Japanese institutional investors.

    The Clifford Chance team included Managing Partner Milos Felgr, Counsel Dominik Vojta, Senior Associate Hana Cekalova, and Associate Tomas Kubala.

  • Stratulat Albulescu and BPV Grigorescu Stefanica Advise on Investment Round for Footprints AI

    Stratulat Albulescu has advised Catalyst Romania Fund II on a EUR 2.3 million investment in Footprints AI, which also saw SeedBlink and other private investors participate. BPV Grigorescu Stefanica advised Footprints AI.

    Footprints AI deals in retail media solutions. According to Stratulat Albulescu, the financing round will be used to develop and expand the largest retail media network in Central and Eastern Europe. Footprints AI’s advanced platform leverages analytics, automation, and artificial intelligence to optimize omnichannel advertising campaigns through precise audience targeting, campaign optimization, and real‑time impact analysis.

    Catalyst Romania deals in private equity and venture capital investments.

    The Stratulat Albulescu team included Partner Cristina Man, Managing Associate Anca Ulea, and Associate Cezara Mitea.

    The BPV Grigorescu Stefanica team included Managing Partner Catalin Grigorescu and Associate Matei Tomi.

  • Linklaters Advises Hillwood Polska on Logistics Park Acquisition in Gdansk

    Linklaters has advised Hillwood Polska on the acquisition of a logistics park in Gdansk.

    Hillwood Polska is a developer and investor in the real estate market.

    The logistics park, which was acquired from funds managed by Blackstone, consists of two fully leased warehouse buildings on Elbląska Street in Gdansk – one measuring 27,000 square meters and the other 16,000 square meters (as reported by CEE Real Estate Matters on February 20, 2025).

    The Linklaters team included Country Managing Partner Janusz Dzianachowski, Managing Associate Zuzanna Lipska, Associate Katarzyna Grodzka, and Junior Associate Aleksandra Stanulewicz.

    Linklaters could not provide additional information on the matter.

  • Hungary’s Consumer Protection Priorities for 2025

    2024 brought with it several important changes to Hungarian consumer protection regulations, most notably the changes to mandatory warranty rights. The Hungarian Consumer Protection Authority (“HCPA“) is also devoting significant effort into enforcing these rights in 2025.

    As online sales remain a key driver for consumer spending, the HCPA keeps a strong focus on e-commerce platforms and online sales that target Hungarian consumers. As part of its annual “review plan”, the HCPA recently issued a list of areas that will receive increased scrutiny, which include:

    • the manipulation of or tampering with consumer reviews;
    • price display and regulations related to price monitoring systems;
    • compliance with applicable marketing and advertising regulations (in particular if they target or can potentially harm minors);
    • a comprehensive and sweeping compliance review of domestic as well as international e-commerce platforms;
    • a review of vendor compliance with warranty and refund-related regulations;
    • compliance with product safety and labelling regulations; and
    • any form of “greenwashing”.

    This increased scrutiny is in line with the launch of recent proceedings initiated by the Hungarian Competition Authority (“HCA“) against two major online sales platforms.

    A recent proceeding against a Romanian-based international sales platform aimed to verify whether the company had fulfilled the commitments it made in 2021, particularly the nearly HUF 3 billion program it had planned as a means of support for Hungarian businesses. Based on earlier findings by the HCA, the platform’s pricing practices did not ensure that “original” prices reflected the actual typical prices of products.

    The HCA also launched an investigation into a Polish online marketplace that operated in Hungary in Hungary as well, suspecting that the company misled consumers with its “Lowest Price Guarantee” campaigns. According to the HCA, the online marketplace did not provide adequate information about the terms of the price guarantee and customers found it difficult to access crucial details. Furthermore, the warranty system included restrictive conditions that made it harder for consumers to enforce their claims and use the coupons they were issued.

    In summary, it appears that the relevant Hungarian authorities will continue to remain focused on online sales and compliance with applicable consumer protection, unfair competition and marketing regulations in 2025.

    By Miriam Fuchs and Peter Ihasz, Senior Associates, and Bence Andras Kiraly, Associate, Wolf Theiss

  • 2025 Regional CEE GC Summit Sneak Peek: Interview with Marton Eorsi of Addleshaw Goddard

    With preparations for the 2025 CEE Legal Matters Regional General Counsel Summit and Deal of the Year awards gala in Prague in full swing, Marton Eorsi, a Corporate Finance Partner at Addleshaw Goddard’s London office, shares his thoughts about the upcoming event and what he’s looking forward to the most.

    CEELM: Why did Addleshaw Goddard decide to participate in the CEE Legal Matters Regional GC Summit in Prague?

    Eorsi: Our decision to participate was driven by our commitment to engaging with those events that perfectly align with our CEE strategy. We focus on upper mid-market corporates in the region—dynamic, international companies that see themselves as global players and seek to operate in a cross-border capacity. 

    This summit perfectly matches the environment in which we operate and aspire to grow. Moreover, the event is specifically designed with General Counsels in mind, which offers a more strategic and impactful approach than events centered solely on law firms.

    CEELM: What are you most looking forward to at the GC Summit?

    Eorsi: I’m excited to hear directly from General Counsels about the opportunities and risks they face—these are the very insights that help us stay ahead of the curve with timely advice and allow us to be properly prepared for any and all potential needs our clients might have. 

    Beyond the formal sessions, the summit promises a vibrant cultural and social experience, enriched by the famous Eastern European hospitality. The blend of technical sessions and networking opportunities is something I’m very much looking forward to and I genuinely can’t wait for it all to start.

    CEELM: Why should General Counsels make sure to attend this summit?

    Eorsi: With our new office opening in Warsaw and our strong commitment to the CEE region, we are demonstrating our dedication to serving our clients in a focused and strategic way—and being present is the best way to do so. We wish to invite General Counsels to experience firsthand the effort and expertise that Addleshaw Goddard brings to the table. Our Warsaw presence is a tangible sign of our commitment, and we hope it underscores the value we place on building lasting partnerships.

    Furthermore, I firmly believe that the summit is a fantastic opportunity to connect with new colleagues and reconnect with familiar faces. It’s all about strengthening existing relationships and forging new ones—showing that we not only talk the talk but also walk the walk. I’m confident this event will pave the way for even stronger client collaborations in the future, for all attendees.

  • What’s Next for CEE? 2025 and Beyond: The CEE Legal Matters February 2025 Magazine Is Out Now!

    The CEE legal market never stands still, and 2025 promises to be no different. In our first CEE Legal Matters 2025 special 12.1 issue, “An Outlook on 2025”, we aim to look at what’s on the horizon. Who’s making moves? Which sectors will redefine themselves? Which regulations will take the spotlight? With insights from our practice leaders, we map out the trends and transformations ahead. The CEE Legal Matters February 2025 Issue is here!

    As a special issue, the February magazine is available to subscribers and non-subscribers alike, right off the bat (here in electronic format and here in pdf), and includes: 

    With the February 2025 issue of the magazine now out, let’s remember what last year looked like: our December 2024 issue has now been moved from behind the paywall and been made available to subscribers and non-subscribers alike (here in e-reader format and here in pdf).

    With Market Spotlights on Poland and Croatia and an Experts Review section on TMT/IP, the December issue included:

    Stay abreast of the latest developments and legal news across CEE. Don’t miss any of the upcoming issues: register for a subscription to the CEE Legal Matters magazine now!

  • An Outlook on 2025: Banking and Finance in Croatia

    Gospic Plazina Stojs Partner Lana Stojs talks about banking and finance in 2025 in Croatia.

    CEELM: What is in the pipeline in terms of legislation that you believe will have the most impact on the banking/finance sector in Croatia?

    Stojs: Several legislative measures are expected to have a substantial impact on Croatia’s banking and finance sector. These include the implementation of the Digital Operational Resilience Act and the NIS2 Directive on cybersecurity and the transposition of the Consumer Credit Directive 2 into the Croatian legal system by way of a new Consumer Credit Act until November 2025, along with, perhaps the most pressing of them all, the alignment with the Instant Payments Regulation (IPR) which has to be completed until April, 2025 and by way of which Croatia is fully aligning with EU payment services regulations to improve security, transparency, and accessibility in the financial sector, making payment services faster, more secure, and more integrated across borders.

    CEELM: Of the above, which ones are you/your clients most excited about and why?

    Stojs: The IPR brings several key benefits for consumers, businesses, financial institutions, and the broader economy. The main benefits could be recognized as faster transactions, enhanced consumer experience, increased efficiency for business, financial inclusion, and cost-effectiveness. The evolving landscape will surely encourage competition within the payment services market, and the financial institutions in Croatia will need to innovate and differentiate their services to remain competitive, thus also opening doors to new fintech solutions. As the adoption of instant payments continues to grow, the benefits will likely expand, contributing to a more integrated, digital, and secure payment environment.

    CEELM: On the flip side, which ones are you/your clients dreading the most and why?

    Stojs: While DORA, which entered into force in February 2025, offers substantial benefits for the financial sector, its implementation poses certain challenges for banks. In terms of compliance requirements, DORA covers a broad range of areas, including risk management, governance, incident reporting, third-party management, and business continuity, all of which must be adequately addressed or enhanced. Further, given that many banks operate across different jurisdictions, complying with DORA’s provisions while also adhering to local regulations can be complex. Additional challenges lie within the upgrading of ICT systems and infrastructure while simultaneously adhering to robust cybersecurity measures, requiring banks to implement advanced security protocols. Finally, one of DORA’s key requirements is the management of third-party risks, including those related to cloud providers, outsourcing arrangements, and other external partners that provide critical services where the banks must ensure that their third-party vendors comply with DORA’s resilience requirements.

    CEELM: What trends do you expect to shape the banking sector in Croatia in 2025?

    Stojs: In 2025, the banking sector in Croatia is expected to further develop, driven by a combination of regulatory reforms, technological advancements, and evolving customer preferences. Digital transformation and fintech integration are expected to be dominant trends, and it is highly likely that traditional banks will continue to enhance their digital offerings. With the IPR and Croatia also moving toward a cashless society, banks are expected to adopt new technologies to accommodate digital-only transactions. Finally, sustainability and green finance are also expected to be in focus for the banks, as both regulatory frameworks and customer demand push for greater integration of ESG principles into banking operations. In 2025, Croatian banks will likely offer more green financial products, such as green bonds and credit lines that support sustainable projects, especially since, in February 2025, the European Green Bond Regulation was implemented into the Croatian legal system, thus aligning the Croatian legal framework with the European Green Bond Standard.

    CEELM: What is the biggest challenge for the banking sector in Croatia at the moment, in your view, and what is the likelihood you’ll see it overcome in 2025?

    Stojs: The banking sector is currently facing an excessive number of rules, requirements, and regulatory processes that need to be complied with. While regulation is crucial to ensure the stability, integrity, and safety of the financial system, overregulation imposes a range of challenges, such as compliance risks and potential penalties, regulatory uncertainty, and operational complexity. The possibility of overcoming the challenges of overregulation will highly depend on the quality of collaboration between the legislators, the regulators, and the banks. A valuable and impactful initiative in terms of simplification of certain regulatory obligations is the so-called EU Omnibus Regulation, the proposal of which is expected to be released by the end of February. The initiative recognizes the intersection between three European ESG regulations: the Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive, and the EU Taxonomy regulation and aims to promote consistency, streamlining, and simplifying sustainability reporting requirements for businesses – including financial institutions – operating in the European Union by consolidating multiple sustainability-related requirements into a single framework.

    This article was originally published in Issue 12.1 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.