Czech President Petr Pavel has officially enacted a law exempting capital gains taxes on Bitcoin holdings retained for over three years, solidifying a historic legislative milestone. According to local reports, this move marks the final step in formalizing the bill, which had already received unanimous approval from the Czech parliament in early December.
The exemption will also extend to cryptocurrencies acquired before 2025, provided they meet the specified holding requirements when sold in future tax years. Furthermore, taxpayers will no longer need to declare transactions below 100,000 koruna (approximately $4,100). Previously, similar to U.S. regulations, all crypto transactions were subject to taxation.
Czech Republic’s Strategic Push for Crypto Regulation and Investment Diversification
Czech parliamentary representatives have previously indicated that the tax amendments are part of the nation’s broader strategy to align with Europe’s Markets in Crypto-Assets (MiCA) regulatory framework, which came into effect late last year.
Providing tax benefits to long-term crypto investors is just one of several reforms underway in the country. Notably, Andrej Babiš, the billionaire former prime minister and current leader of the conservative ANO 2011 party, emphasized the need for balanced cryptocurrency regulations and equitable tax policies during his keynote speech at The Block’s Emergence conference in Prague last December.
Meanwhile, the Czech National Bank’s board recently approved a proposal to explore investments in alternative asset classes, including Bitcoin, as part of its reserve diversification strategy. Governor Aleš Michl has suggested that up to 5% of the bank’s €140 billion ($146 billion) reserves could potentially be allocated to Bitcoin.
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