Regulation of Cryptocurrencies in Czech Republic
Recently, there has been a rapid growth of users of cryptocurrencies and digital asset trading. The widespread adoption of cryptocurrencies leads to the fact that governments are tightening the regulation and control of digital assets, as more and more citizens use them.
The Czech Republic, whose financial government has published information on legislation in the field of cryptocurrencies, did not stand aside either.
In its statement, the ministry proposes to classify all cryptocurrencies in the same way. This means that regardless of the purpose or function of the cryptocurrency, whether it is speculative, trading or mining, all digital assets are grouped together.
Companies that use cryptocurrencies for commercial purposes, including mining farms, must get a license and pay taxes to the Social Fund and the Health Fund.
The commercial use of digital assets is considered a commercial activity and is therefore taxable. In this case, the tax rate is 19%.
The Czech Republic is one of the first EU countries that has introduced a loyal regulation of virtual currencies and their status. In April 2015, the head of the National Bank Miroslav Singer, registered a summary "Security of Internet Payments and Cryptocurrency".
Based on this document, EU laws apply to virtual currencies in the absence of restrictions from the legislation of the Czech Republic.
Now the Czech Republic remains one of the most loyal countries that regulate virtual currency. This approach contributes to the growth of fintech enterprises using blockchain technology and increases the growth of investments in the country.
Thanks to favorable legislation, the Czech Republic is attractive for cryptocurrency and IT activities. The government of the country supports the work of progressive blockchain companies involved in the development of innovative financial technologies.
For this reason, owners of companies engaged in cryptocurrencies prefer to register a business in the jurisdiction of the Czech Republic.
The Czech license allows the company to operate in all EU countries, provides greater freedom in the variety of services offered and has a number of diverse advantages for working not only in the EU, but also around the world.
The loyal attitude to cryptocurrencies on the part of the government leads to the fact that more and more citizens of the country are actively using cryptocurrencies and the adoption of digital assets continues to grow. Residents of Czech Republic are increasingly using digital assets, and thanks to OWNR Wallet, you can now buy cryptocurrency with your credit/debit card.