Czech President Petr Pavel has reportedly signed a “landmark” cryptocurrency legislation into law, providing Czechia with regulatory clarity on digital assets that are aligned with broader European Union laws.
According to a translated blog post by the Czech Cryptocurrency Association, also known as CKMA, the new legislation simplifies crypto tax rules and implements the EU’s Markets in Crypto-Assets (MiCA) regulation “in a way that supports innovation and development of the entire industry.”
After years of lobbying, CKMA played a role in preparing the legislation.
“The proposals submitted were completely unthinkable a few years ago, now all legislators present have agreed to them,” said František Vinopal, the CKMA’s chairman.
“The new legislation introduces the right for cryptocurrency companies to access bank accounts if they pass the licensing process,” CKMA told Cointelegraph in a written statement, adding:
“It also sets clear rules for taxing cryptocurrency transactions and ensures long-term stability and predictability for entrepreneurs in the industry — changes that the cryptocurrency sector has been striving for for many years.”
Czechia’s legislation was passed less than two months after EU member states received the final guidance on MiCA laws, which went into effect on Dec. 30.
The regulatory framework is intended to standardize and regulate the cryptocurrency market across the EU, with provisions on investor protection and financial stability. MiCA legislation covers platform and issuer requirements, cross-border cooperation among EU member states and ways to prevent market abuse.
Related: ECB president ‘confident’ Bitcoin will not enter central bank reserves
Czechia considers Bitcoin
Cryptocurrency adoption in Czechia is being considered at the highest level, with the country’s national bank open to adding Bitcoin BTC $97,358 to its foreign reserves.
Aleš Michl, who heads the Czech National Bank (CNB), has proposed allocating up to 5% of the central bank’s reserves to Bitcoin. At this rate, the CNB could acquire up to $7.3 billion worth of BTC.
In a post on the X social media platform, Michl said the CNB’s goal is price stability, adding that the central bank was diversifying its reserves into non-correlated assets.
“An asset under consideration is Bitcoin,” said Michl. “It currently has zero correlation to bonds and is an interesting asset for a large portfolio. Worth considering.”
Following Michl’s recommendation, the CNB said it would “assess” whether new asset classes “would be appropriate from the perspective of diversification and yield.” However, the central bank did not mention Bitcoin specifically.
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Hester Peirce, head of the US Securities and Exchange Commission’s (SEC) Crypto Task Force, said that putting securities on a blockchain “does not have magical abilities to transform the nature
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