[NEWS] Czech President signs bill on cryptocurrency tax and regulation

Czech President Petr Pavel signed a bill on the development of a cryptocurrency tax and regulatory framework on the 6th. It will promote innovation and growth throughout the industry and will be in line with the European cryptocurrency regulation MiCA.

According to the Czech Cryptocurrency Association (CKMA), which helped draft the bill, the new law will clarify taxation on profits generated by cryptocurrency transactions and allow cryptocurrency-related companies access to bank accounts. This will ensure long-term and stable predictability for entrepreneurs in the industry, he said.

CKMA Chairman František Vinopal emphasized the achievement, saying, "Just a few years ago, these proposals would have been unthinkable, but today they are unanimously supported by lawmakers." He also said, "This unprecedented political unification is the result of a lot of effort not only by CKMA, but the entire Czech cryptocurrency community, and we have achieved it."

Vinopal also said that cryptocurrencies are not only a technological trend, but "a key element of the future Czech economy." "The industry could bring significant revenue to the state budget and create hundreds, even thousands, of jobs. What's more, it could help the Czech Republic become an innovation hub for the European Union," he continued.

Currently, the Czech Republic is one of the countries that is attracting attention for its cryptocurrency-related activities. In addition to the development of cryptocurrency-related regulations, the trend of establishing a Bitcoin (BTC) reserve is attracting attention from the industry.

At the end of last month, the Czech National Bank approved a study on expanding investment assets with the aim of diversifying the reserve. Bitcoin is said to be included in the investment assets under consideration, and it was also proposed to Lagarde, the president of the European Central Bank.

However, Lagarde took a negative stance, saying that "holding Bitcoin does not become a national foreign exchange reserve," and rejected the proposal. She added that the conditions required for a central bank reserve are that "it must be highly liquid and safe."

Although the trend of the Czech Republic's establishment of a Bitcoin reserve is unclear at this time, it is expected to continue to attract attention along with the movements of other countries such as the United States.

Reference: Announcement
Image: Shutterstock

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