Czech Republic exempts three-year old Bitcoin from capital tax gains

The Parliament of the Czech Republic has reportedly passed a law that would exempt Bitcoin held for more than three years from capital tax gains, putting it on par with stocks.

The Parliament of the Czech Republic unanimously agreed to exempt capital gains tax on Bitcoin (BTC) held for more than three years, according to a video prepared by Kristian Csepcsar, Propaganda Chief of Braiins mining. Previously, capital gains from owning Bitcoin were subject to a 21% corporate tax.

Not only that, the parliament also agreed on a set of new laws that will benefit Bitcoin holders in the long run.

One of the laws passed by the parliament includes giving Bitcoin-related businesses the right to open bank accounts. Often traditional financial institutions choose not to invest in or provide services to crypto companies for fear of losing support; As seen with Operation Chokepoint 2.0 in the US, which led to the bankruptcy of numerous crypto-related banks.

“Local Bitcoin businesses have the right to have a bank account. “Banks can no longer discriminate against them by closing their accounts for no reason,” said Csepcsar, who lives in Prague, the capital of the Czech Republic.

Another important milestone that Csepcsar mentions in the video is that the Czech Republic now has legal clarity on Crypto Asset Markets regulations, or MiCA, which apply to all territories within the European Union.

MiCA is a regulatory framework that clarifies and uniformly regulates the cryptocurrency market. It defines digital asset classification and specifies the laws and areas of responsibility for their implementation. Crypto and stablecoin companies are expected to be fully compliant with the new MiCA laws by December 30.

Besides the Czech Republic, a number of other countries, including the United Arab Emirates, Malaysia, and Switzerland, have also declared zero personal income and capital gains taxes on crypto gains over the years.

Meanwhile, French regulators are considering a proposal that would tax unrealized capital gains for cryptocurrencies, potentially changing the way assets like Bitcoin are taxed.