Czech Republic Parliament has passed a law treating Bitcoin like stocks, exempting it from capital gains tax if held for over three years
The Czech Republic Parliament has unanimously agreed, according to a video by Kristian Csepcsar, Chief of Propaganda for Blockchain Mining, to not tax Bitcoin gains held for more than three years. When I first bought Bitcoin, I had to pay a 21% business income tax on any capital gains.
Besides that, the parliament has also agreed to a set of new rules that will help people who own Bitcoin in the long run.
Parliament passed a law allowing businesses tied to Bitcoin to open bank accounts. Often, traditional banks wouldn’t invest in or work with crypto companies out of fear that they would lose support. For example, Operation Chokepoint 2.0 in the U.S. caused many crypto-related banks to go out of business.
Bitcoin businesses in my area should be able to get a bank account. The person from Prague, the capital of the Czech Republic, called this unfair: “Banks can no longer close their accounts for no reason.”
Another important step forward that Csepcsar talks about in the video is that the Czech Republic now has clear laws about the Markets in Cryptoassets Regulations, or MiCA. These rules apply to all EU areas.
The MiCA is a set of rules that makes the bitcoin market clear and consistent. The MiCA specifies the categorization of digital assets and outlines the rules and areas of responsibility for their implementation. From December 30 to January 1, 2019, crypto and stablecoin companies must fully follow the new MiCA rules.
Along with the Czech Republic, many other countries, such as the United Arab Emirates, Malaysia, and Switzerland, have said that they will not tax crypto gains as personal income or capital gains over the years.
However, French officials are thinking about a plan that would tax cryptocurrencies’ unrealized capital gains. This could alter the taxation of assets such as Bitcoin.
