For the First Time in a Long Time, Positive News for Bitcoin and Cryptocurrencies from a European Country

The Czech Republic has taken a significant step forward in cryptocurrency regulation by passing a law that exempts Bitcoin and other cryptocurrencies held for more than three years from capital gains taxes. The measure, which was unanimously approved by parliament on December 6, will come into effect on January 1, 2025.

The new law introduces clear rules for tax exemptions for cryptocurrency transactions. According to Czech news outlet Parlamentní Listy, individuals will be able to benefit from tax relief under two main conditions:

Income Limit: Annual gross income from cryptocurrency transactions must not exceed 100,000 CZK (approximately $4,000).

Holding Period: Digital assets must be held for at least three years before being sold to benefit from the exemption.

Prime Minister Petr Fiala described the new law as a win for innovation and modern technologies. In a post on X (formerly Twitter), he said:

“If you hold cryptocurrencies for more than three years, their sale will not be taxed. We have pushed for better conditions for cryptocurrencies to make people's lives easier and support modern technologies.”

The Czech Republic's reforms are in line with the European Union's Markets in Crypto Assets (MiCA) regulatory framework, which will come into full force on December 30, 2024.

*This is not investment advice.