Aspirations to make the Czech Republic a crypto hub have prompted lawmakers to pass sweeping reforms to its financial markets.
Deputy Speaker Jan Skopeček, a vocal advocate of the bill, highlighted two critical obstacles the law aims to remove.
First, cryptocurrency companies and investors will now have a guaranteed right to open bank accounts, addressing a long-standing barrier to their operations.
Second, a new three-year tax exemption window will apply to crypto investments, aligning the rules with those for traditional assets like stocks.
Skopeček praised the Czech Republic’s rich talent pool and innovative companies in the crypto and blockchain sectors.
He warned that without a supportive legal framework, these businesses might relocate to jurisdictions offering greater legal certainty.
“It would be a shame to lose such high-value companies and investors,” he stated, calling the move essential for retaining the nation’s competitive edge.
MiCA rules incoming
This legislation comes as the EU’s new Markets in Crypto-Assets regulation nears its next phase of implementation on December 30.
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Crypto businesses operating in the European market, worth nearly $1 trillion, face mounting pressure to comply with MiCA’s rules for crypto asset service providers.
While MiCA promises to harmonise regulations across EU states through passport provisions, uneven grace periods and bureaucratic delays have left firms scrambling.
Industry groups have urged the European Securities and Markets Authority to extend grace periods to June 2025, warning that failure to do so could disrupt services and harm the market’s reputation.