Czech Republic President Petr Pavel signed a new bill on February 7, 2025. The bill allows crypto users to avoid taxes on long-term gains, as a spokesperson from the Ministry of Finance shared.
‘The principle is if crypto assets are held for more than three years, their sale will not be taxed, or transactions up to CZK 100,000 [$4,136] per year will not be obliged to report in the tax declaration, similar to securities’, the spokesperson said.
The Digitalization of the Financial Markets Act is now nearing the end of the legislative process and should be officially published in a week or two. The Czech Republic is part of the European Union (EU). In late January 2025, the board approved a plan by Czech National Bank Governor Aleš Michl to add more assets, such as Bitcoin (BTC), to the bank’s reserves.
This surprises many, including players at crypto casinos online who think this will benefit the industry. However, this idea was not welcomed by European Central Bank President Christine Lagarde, who stated she believes BTC will not be included in the reserves of any EU central banks.
What is the Digitalization of the Financial Markets Act?
On December 6, 2024, the Chamber of Deputies in the Czech Republic passed the Act on Digitalisation of the Financial Market (ZDFT). This is a key move to update the Czech legal system to fit European rules for digital finance.
The Act addresses issues linked to Regulation (EU) 2022/2554, which focuses on the digital resilience of the financial sector, and Regulation (EU) 2023/1114, which deals with crypto assets. The ZDFT aims to build a strong base for applying these rules in the Czech Republic, ensuring the safety and stability of digital financial deals.
Japan’s FSA Considers Crypto Regulation Regime
Japan’s Financial Services Agency (FSA) is looking at classifying crypto assets as financial assets, similar to securities. This change aims to boost investor protection by making firms share more details.
The FSA is holding a private study with experts to review current rules. After this review, the agency plans to reveal new regulations by June 2025. Any changes could make spot crypto exchange-traded funds (ETFs) more appealing if they are approved. In August 2024, the head of the FSA mentioned that careful thought is needed before deciding on crypto-related ETFs.
What Does This Mean For The Industry?
Once crypto assets are considered financial assets, similar to securities, crypto will be treated more like stocks or bonds, which brings new rules and protections. One of the main benefits is increased protection for investors.
Firms will have to provide more details about their crypto products. This means better info for buyers, helping them make smart choices. With stronger rules in place, people may feel safer putting their money into crypto. This change could also lead to more growth in the crypto market.
With clearer rules, more firms may enter the space, offering new products and services. As trust builds, more investors could join in, expanding the crypto market and increasing trading activity in Japan.
By classifying crypto as financial assets, it also opens the door for new investment options, such as crypto exchange-traded funds (ETFs). These funds allow people to invest in crypto without having to buy the coins directly. If ETFs are approved, they could attract a lot of new investors who prefer a simpler way to get involved, including casino players at crypto casinos online.
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