Czech President Petr Pavel has inked a significant cryptocurrency legislation, establishing regulatory clarity consistent with European Union laws for Czechia’s digital assets realm. A blog post by the Czech Cryptocurrency Association, CKMA, conveyed the new regulation simplifies cryptocurrency tax rules and enacts EU’s Markets in Crypto-Assets (MiCA) rules supportive of industry-wide innovation.
Lobbying by CKMA played a significant role in shaping this legislation. The association’s chairman, František Vinopal, said today’s accepted proposals were completely unthinkable a few years ago. According to CKMA, the law grants cryptocurrency businesses access to bank accounts once they have passed the licensing process.
Notably, the regulation sets clear rules for taxing cryptocurrency transactions and ensures long-term predictability and stability for industry entrepreneurs – a change that the sector has long advocated for.
Czechia’s legislation came into force less than two months after EU member states received the final guide on MiCA laws, which were fully implemented on December 30. The regulatory framework aims to standardize and regulate the EU’s cryptocurrency market, and includes provisions on investor protection, financial stability, and market abuse prevention.
Cryptocurrency adoption is being seriously considered at the highest levels in Czechia, with their national bank even contemplating adding Bitcoin to its foreign reserves. The Czech National Bank’s head, Aleš Michl, proposed that up to 5% of the central bank’s reserves could be allocated to Bitcoin, equating to potentially $7.3 billion worth of BTC. Michl stated that one of the assets under consideration is Bitcoin and that it’s worth considering for a large portfolio since it currently has zero correlations with bonds.