Czech President Signs Important Cryptocurrency Tax Law
Date: 2025-02-07 Author: Oliver Abernathy Categories: IN WORLD
Czech President Petr Pavel has signed a law that exempts cryptocurrency holders from taxes if they hold assets for more than three years. The new law complies with the requirements of the European MiCA and aims to simplify the tax regime for crypto investors while supporting innovation in this area.
Czech Cryptocurrency Association Chairman František Vinopal noted that such measures were unlikely a few years ago, but now lawmakers have come to a consensus. It is expected to come into force in mid-2025.
Amid this discussion, Czech National Bank Governor Aleš Michl proposed to allocate up to 5% of the central bank's reserves to buy Bitcoin. This would allow the Czech Republic to buy BTC worth almost $7.3 billion. However, the European Central Bank rejected the proposal, citing the need to maintain liquidity and reserve stability. In response, the National Bank commissioned a study to assess the potential use of bitcoin in reserve policy. Michl said he would accept the results even if they did not match his initial plans.
The Czech Republic continues to balance between supporting cryptocurrency innovation and the need to ensure financial stability.
