Czech Republic passes crypto-friendly law, exempts Bitcoin from capital gains

The Czech Republic has adopted legislation exempting Bitcoin and other digital assets of capital gains if it is held for more than three years.

President PETR PAVEL sign The law, according to BTC Prague, aligning the country’s cryptographic taxation with traditional titles.

The tax exemption applies to individuals and non -commercial activities, eliminating the previous tax drawbacks for long -term cryptography investors. The amendment, which should come into force in mid-2010, puts the regulatory framework of the Czech Republic in accordance with the Czech Republic Crypto-active markets rules.

The Chamber of Deputies approved the law in January as part of wider efforts to modernize the country’s financial regulations. Under the new rules, Bitcoin (BTC)) Holders who sell their assets after three years will no longer have income tax on profits, reflecting the tax treatment of long -term equity investments.

Bitcoin Czech reserve

The Czech National Bank examine A proposal to add bitcoin to its reserves, but the process can take months, and any exposure would be much lower than that of 5% initially suggested, according to sources.

Governor Ales Michl presented the idea, but the president of the European Central Bank, Christine Lagarde, rejected the proposal, stressing the need for liquidity and security in the reserves.

In response, the Czech National Bank ordered a study to assess the feasibility of Bitcoin, Michl declaring that he would accept his conclusions, even if they rejected the plan.