The Czech Republic Parliament reportedly passed a law that would exempt Bitcoin held for more than three years from capital tax gains, placing it on the same level as stocks.
According to a video by Braiins mining’s Chief of Propaganda, Kristian Csepcsar, the Czech Republic Parliament has unanimously agreed to exempt capital gains tax on Bitcoin (BTC) held for more than three years. Previously, capital gains that came from owning Bitcoin was subject to a 21% corporate income tax.
Not only that, the parliament has also agreed on a set of new laws that would serve to benefit Bitcoin holders in the long-run.
One of the laws passed by parliament includes giving Bitcoin-related businesses the right to open up a bank account. Oftentimes traditional finance institutions would choose not to invest or offer services to crypto firms for fear of losing support, as seen in the U.S. with Operation Chokepoint 2.0 which led to numerous crypto-related banks going bankrupt.
“Local Bitcoin businesses have the right to a bank account. Banks can no longer discriminate against them by closing their accounts for no reason,” said Csepcsar, who is based in Prague, Czech Republic’s capital city.
Another major milestone mentioned by Csepcsar in the video, is the fact that now the Czech Republic has legal clarity when it comes to the Markets in Crypto-Assets regulations or MiCA, which applies to all regions under the European Union.
MiCA is a regulatory framework that clarifies and uniformly regulates the cryptocurrency market. It defines digital asset classification and specifies laws and areas of responsibility for their implementation. Crypto and stablecoin firms are expected to fully comply with the new MiCA laws by Dec. 30.
Aside from the Czech Republic, a number of other countries have also declared zero personal income and capital gains tax on crypto gains over the years, including United Arab Emirates, Malaysia and Switzerland among others.
On the other hand, French regulators are considering a proposal that would tax unrealized capital gains for cryptocurrencies, potentially altering how assets like Bitcoin are taxed.
