Big Win for Crypto Investors
The Czech Republic has taken a huge step in welcoming cryptocurrency by passing a law that exempts Bitcoin and other digital assets from capital gains tax if held for more than three years. This means investors who HODL their crypto for the long term won’t have to pay taxes when selling it! The law, which aligns with traditional securities taxation, will take effect in mid-2025.
Crypto Investors Get a Tax Break
The law, signed by President Petr Pavel, applies only to individuals and non-business activities. This removes the previous tax burden on long-term investors and makes crypto investments more attractive. The Chamber of Deputies had already approved the law in January, showing strong government support for the crypto industry.
This change also brings the Czech Republic in line with the European Union’s Markets in Crypto-Assets (MiCA) regulations, which aim to provide clearer rules for the digital asset space.
Will the Czech National Bank Buy Bitcoin?
While the government is making tax policies more crypto-friendly, the Czech National Bank (CNB) is considering adding Bitcoin to its reserves. Governor Ales Michl suggested that Bitcoin could be part of the country’s financial holdings, but the decision is still under review.
European Central Bank (ECB) President Christine Lagarde dismissed the idea, saying Bitcoin is not liquid or secure enough for reserves. In response, the CNB has commissioned a study to determine if Bitcoin should be included. Governor Michl has promised to accept the study’s results, even if they don’t support Bitcoin adoption.
What This Means for Crypto in the Czech Republic
With this tax exemption, the Czech Republic is positioning itself as one of the most crypto-friendly countries in Europe. This move could attract more investors, businesses, and startups to the country’s growing crypto ecosystem.
