Czech Republic Approves Bitcoin Tax Exemption For Long-Term Holders

The Czech Republic has officially passed a law exempting Bitcoin BTC/USD holdings from capital gains tax if held for more than three years.

President Petr Pavel signed the bill into law, solidifying a parliamentary decision made in December.

This change aims to incentivize long-term cryptocurrency investment while aligning the country's financial policies with broader European regulations.

Under the new legislation, individuals who purchased Bitcoin before 2025 can also benefit from the tax exemption if they meet the required holding period.

Additionally, cryptocurrency transactions under 100,000 koruna (approximately $4,100) will no longer require tax reporting.

Previously, all crypto transactions were considered taxable, similar to policies in the United States.

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This regulatory shift is part of the Czech Republic's efforts to integrate with the European Union's Markets in Crypto-Assets (MiCA) framework, which came into effect last year.

The move reflects the country's growing embrace of digital assets and an effort to make taxation policies more competitive within the region.

Beyond tax reform, discussions on cryptocurrency regulation are gaining momentum in the country.

At a recent industry conference in Prague, former Prime Minister Andrej Babiš emphasized the importance of balanced crypto regulations and fair tax policies.

Meanwhile, the Czech National Bank is exploring the possibility of investing in digital assets.

Governor Aleš Michl recently indicated that up to 5% of the bank's €140 billion ($146 billion) reserves could be allocated to Bitcoin as part of a broader diversification strategy.

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