Czech Lawmakers Pass Crypto Reform with 3-Year Tax-Free Hold

On December 6, Czech lawmakers passed a major crypto reform. The new law will go into effect on January 1, 2025. This change promises clear rules for digital assets, offering fresh opportunities for investors and businesses. 

No Taxes on Long-Term Crypto Gains

Long-term crypto holders will no longer pay taxes, and businesses will enjoy more legal protections. The Czech Republic is positioning itself as a crypto-friendly country, attracting investors and companies across Europe.

One of the biggest changes is the removal of capital gains tax on crypto held for more than three years. This means long-term investors can keep their profits without worrying about paying taxes. 

Small investors also benefit, as any crypto earnings below 100,000 CZK (about $4,300) will remain tax-free. Earnings above this amount will face a flat 15% tax rate, making the system easier to manage.

Legal Protections for Crypto Businesses

The reform also protects crypto businesses. In the past, banks have been hesitant to work with these businesses. Now, the law guarantees companies the right to maintain bank accounts, eliminating uncertainty. 

The Czech Republic is also adopting the European Union’s Markets in Crypto-Assets (MiCA) framework. This will help the country stay aligned with EU standards and attract businesses seeking regulatory clarity.

The reforms are not yet final. They still need approval from the Senate and the president. If signed into law, this reform could make the Czech Republic a leading hub for crypto innovation in Europe.