In early December 2024, the Chamber of Deputies of the Czech Republic unanimously approved groundbreaking legislation in the field of digital assets, which significantly strengthens the position of the Czech Republic as one of the most important European centres of this industry. The new legislation implements the European Union's Markets in Crypto-Assets Regulation (MiCA) and the Digital Operational Resilience Act for the financial sector (DORA) into Czech law, designating the Czech National Bank as the authority for supervision and licensing under the MiCA regulation.
Owing to time constraints, the third reading approved postponing the effective date of both acts to the first day following the day of their publication in the Collection of Laws. The approved legislation also includes the introduction of a time and value test for the taxation of digital assets, similar to other financial instruments, which brings tax relief for long-term investors.
This step is seen as a significant move towards modernising the domestic financial environment and integrating digital assets into the financial mainstream. Jiří Havránek, a member of parliament for the ODS, welcomed the adoption of the legislation as a "great day for digital assets in the Czech Republic" and emphasised that favourable regulation and the swift granting of licences could retain and attract new companies to the Czech Republic.
František Vinopal, chairman of the Czech Cryptocurrency Association, said: "The Czech Republic now has the most comprehensive infrastructure for digital assets in Europe. We are the only European country that manufactures world-class hardware wallets, we have our own mining software and hardware, a developed network of ATMs, exchange offices, payment gateways and exchanges, and we will be one of the few countries to have our own regulated stablecoin pegged to the national currency."
InvestBay welcomes this legislative change and is already taking steps to obtain the relevant licence from the Czech National Bank. We believe that clear regulation and supervision will contribute to greater investor confidence and open up new opportunities in the digital assets market. We will keep you informed about further developments and specific steps.
You can find more information about this legislative change, for example, in the interview with member of parliament Jiří Havránek on CzechCrunch.
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