Czech Republic Takes a Progressive Step for Crypto Users
Czech President Petr Pavel officially signed a significant piece of legislation on Thursday, which will exempt cryptocurrency users from taxation on long-term gains. This announcement was confirmed by a spokesperson from the Ministry of Finance, as reported by CoinDesk.
The new legislation stipulates that if crypto assets are held for a duration exceeding three years, their sale will not be subject to tax. Additionally, transactions up to CZK 100,000 (approximately $4,136) per year will not require reporting in tax declarations, a policy that aligns closely with existing regulations for securities.
This initiative is part of the Digitalization of the Financial Markets Act, which is currently nearing the final stages of the legislative process. Officials anticipate that the act will be officially published within the next week or two. It is noteworthy that the Czech Republic is a member of the European Union (EU), which makes this development particularly significant.
In a related development, just one week prior, a proposal by Aleš Michl, the Governor of the Czech National Bank, was approved by the bank’s board. This proposal suggested that the central bank consider diversifying its reserves by adding assets such as bitcoin.
However, this move has not been well received by Christine Lagarde, the President of the European Central Bank. Lagarde expressed her firm belief that bitcoin is unlikely to become part of the reserves of any central bank within the EU.
