Czech Republic Stakes Crypto Claim as MiCA Era Begins

The Czech National Bank (CNB) is emerging as a pivotal authority in the regulation of cryptocurrency activities within the Czech Republic, a country that has taken a progressive approach toward digital assets. Under the Czech Gambling Act (Act No. 186/2016 Coll.), both land-based and online gambling are legal, with a tax rate of 23% on operators for most games and 35% on technical games. Gambling winnings are taxed at 15% as income. The CNB plays a central role in enforcing Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations for Virtual Asset Service Providers (VASPs), which are defined as individuals or companies that facilitate virtual currency exchanges.

The regulatory environment in the Czech Republic also allows for the use of cryptocurrencies as a means of payment, although they do not hold legal tender status. The country has implemented advanced cryptocurrency laws that align with EU standards, and the CNB is tasked with ensuring compliance with these regulations. These efforts are part of a broader strategy to integrate virtual assets into the formal financial system, offering a clear legal framework that encourages innovation while maintaining financial integrity.

Cryptocurrency taxation in the Czech Republic is currently under review, with the government considering how to treat capital gains from crypto transactions. As of now, there are no specific tax laws governing crypto assets, though the country is preparing for potential changes aligned with the EU’s Markets in Crypto-Assets Regulation (MiCA). This legislative framework, which came into effect on December 31, 2024, aims to harmonize crypto regulations across the EU, enhancing investor protection and market stability. The Czech Republic is among the 11 member states where over 56 Crypto Asset Service Providers (CASPs) have been authorized since September 2025, reflecting the country’s commitment to fostering a regulated and secure crypto environment.

The CNB’s role in overseeing VASPs underscores its importance in ensuring compliance with AML and KYC obligations, particularly in the gambling sector where anonymity is a common concern. By implementing a robust regulatory framework, the CNB helps maintain trust in the financial system and supports the development of a mature crypto market in the Czech Republic. This proactive approach is aligned with the broader goals of MiCA, which seeks to create a unified regulatory landscape for crypto-asset services across the EU.

Looking ahead, the Czech Republic is positioning itself as a hub for Web3 innovation, with tax benefits and regulatory clarity attracting entrepreneurs and digital nomads. The government is also exploring tokenization initiatives and is actively engaging with experts and tax authorities to provide guidance on navigating the evolving crypto landscape. These developments highlight the country’s commitment to leveraging digital currencies for economic growth while ensuring compliance with international standards.