Victoria O.Mon, Sep 13, 2021 10:35 AM
Watchdogs: Czech Republic Crypto Regulation
The Czech Republic became one of the European countries loyal to bitcoin transactions, even before the cryptocurrency boom in 2017. So, in April 2015, the Czech National Bank issued a document that defined the state's attitude to cryptocurrencies.
How are they regulated in the Czech Republic and why is the country considered one of the largest cryptocurrency hubs in Europe? What about crypto regulation Czech republic? Bitcoin Czech republic? Let's figure it out from the very beginning
The legal status of cryptocurrencies in the Czech Republic is a cryptocurrency
Crypto regulation Czech republic is a very interesting theme. The Czech Republic was one of the first in Europe to take steps to gently regulate cryptocurrencies and their status in the country.
Back in April 2015, the former governor of the Czech National Bank, Miroslav Singer, published a summary "Security of Internet payments and virtual currency from the point of view of the Czech National Bank". According to this document, transactions with cryptocurrencies were not limited by the law of the country in any way, only the norms of EU legislation were applied to them.
According to the statement of the national bank, cryptocurrencies do not pose a threat to the traditional banking system. Officially, in the Czech Republic, they are not considered a means of payment, and the law on payment systems does not apply to them.
The Czech National Bank considers virtual currencies as intangible assets, which means that they can be subject to VAT. At the same time, no permission is needed to trade bitcoins, and the purchase or sale is not subject to state supervision.
Is Bitcoin available in the Czech?
"Bitcoin" is neither non-cash money nor electronic money (§ 4 ZPS), including neither monetary funds according to the provisions of § 2 paragraph 1 letter c) of the ZPS. Сrypto regulation Czech republic is becoming an increasingly interesting topic
The purchase or sale of bitcoins is neither any of the payment services according to § 3 paragraph 1 of ZPS, nor non-cash foreign currency trading (§ 2 paragraph 1 letter e) of ZPS).
Similarly, they do not represent any of the payment services according to ZPS, either regarding transactions within the bitcoin protocol (for example, sending a certain amount of bitcoins to another user), or "maintaining an account in bitcoins" (when another person manages his bitcoins for the owner of bitcoins, as a rule, within the framework of a "virtual wallet" on an Internet page).
In the case of the exchange (including the purchase) of bitcoins for the Czech crown or other currency/ the signs of exchange, trade is not defined, which is defined as" the exchange of banknotes, coins or checks designated in a certain currency for banknotes, coins or checks designated in another currency", that is, neither the sign of the monetary type of the object of exchange nor the sign "designated in a certain currency" is defined.
Bitcoin does not have any signs of investment instruments according to § 3 of the ZPKT, and the issued tokens do not have signs of securities. Crypto regulation Czech republic allows us to look at an example of a developed crypto country
Taxes on cryptocurrencies in the Czech Republic
According to the position of the Central Bank, operations with digital money are not subject to licensing and payment of additional taxes. But the profit received by companies in the form of cryptocurrencies is subject to the usual capital gains tax. In the Czech Republic, cryptocurrencies are equated to a product that is not considered a payment instrument.
But if a company or an individual makes a profit (incurs a loss) when buying or selling cryptocurrencies, it must be declared in their tax reports and pay the appropriate tax. It is difficult to assess the reasonableness of the Czech republic crypto tax, but there is no dispute about tastes
The corporate income tax rate in the Czech Republic is 19%. The income tax on individuals and individual entrepreneurs is 15% in the Czech Republic and applies to such types of profit: hired labor, entrepreneurship, rental income, and other types of activities.
Income from the purchase of shares, from the donation of real estate, and from inheritance is not taxed. All citizens of the country, as well as foreigners who live in the Czech Republic for at least 183 days at intervals or continuously, are required to submit an annual declaration.