- Czech Republic approves crypto tax breaks and banking duties.
- The new law aims to keep businesses and investors in the Czech economy.
Aspirations to make the Czech Republic a crypto hub have prompted lawmakers to enact sweeping reforms to its financial markets.
Vice President Jan Skopeček, a staunch supporter of the bill, highlighted two critical obstacles that the law aims to eliminate.
First, cryptocurrency companies and investors will now have the guaranteed right to open bank accounts, removing a long-standing barrier to their operations.
Second, a new three-year tax holiday window will apply to crypto investments, bringing the rules in line with those for traditional assets like stocks.
Skopeček praised the Czech Republic’s rich talent pool and innovative companies in the crypto and blockchain sectors.
He warned that without a favorable legal framework, these companies could relocate to jurisdictions with greater legal certainty.
“It would be a shame to lose such valuable businesses and investors,” he said, calling the move essential to maintain the country’s competitive edge.
Inbound MiCA Rules
This legislation comes as new European regulations on crypto-asset markets approach their next phase of implementation, on December 30.
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Crypto firms operating in the nearly $1 trillion European market are facing increasing pressure to comply with MiCA rules for crypto asset service providers.
While MiCA promises to harmonize regulations between EU states through passport provisions, patchy grace periods and bureaucratic delays have left businesses in a difficult situation.
Industry groups have urged the European Securities and Markets Authority to extend grace periods until June 2025, warning that failure to do so could disrupt services and damage the market’s reputation.
