The Czech Republic has introduced a Crypto-Friendly Law to promote innovation and attract long-term investors. President Petr Pavel signed the bill on February 6, allowing individual investors to enjoy capital gains tax exemption if they hold crypto assets for three years. However, business investments are not included.
The Digitalization of the Financial Markets Act, passed on December 6, 2024, also exempts crypto transactions under CZK 100,000 (USD 4,100) per year from tax reporting, making small purchases like buying coffee with Bitcoin tax-free. Prime Minister Petr Fiala said the goal is to support modern technology and simplify people's lives. The law also ensures crypto companies can open bank accounts without restrictions.
The Czech Cryptocurrency Association highlighted that the law aligns with the EU’s MiCA framework, boosting innovation and making the country an attractive hub for blockchain projects.
Meanwhile, the Czech National Bank (CNB) is considering allocating up to 5% of its EUR 140 billion reserves in Bitcoin. Governor Aleš Michl stated that Bitcoin could help diversify assets, but discussions are ongoing.
The CNB Bank Board announced on January 30, 2025, that it would assess the feasibility of new asset classes, though no immediate decisions will be made.
Finance Minister Zbynek Stanjura expressed concerns, stating that a central bank should symbolize stability, and Bitcoin's volatility might not align with that principle.
These policies position the Czech Republic as a pro-crypto leader in Europe, potentially influencing other nations.
Source: Global Legal Insights
