Virtual assets have, over the past three to four years, evolved from startup community exotica into one of the most discussed issues in European economic policy. The Czech Republic — a country with a vibrant IT scene and high trust in digital services — feels this especially strongly: in Prague, Bitcoin ATMs are more common than branches of some banks. Against this backdrop, the government and regulators are looking for ways to preserve room for innovation without compromising financial stability.
Government Interests: From Taxes to National Reserves
The Czech market is maturing rapidly. According to an Expats.cz survey, nearly half of the country’s adult population is considering purchasing cryptocurrency in the coming years, and the turnover of the largest exchange, Anycoin, exceeded CZK 10 billion in 2024, doubling the figures from 2022. For the state, this is not just statistics: it’s new sources of investment — and a new headache for the tax authority. In response, a “three-year exemption” was signed into law in February 2025: if a digital asset is held for at least three years, the capital gains are tax-exempt; additionally, transactions under CZK 100,000 per year no longer need to be declared. The law incentivizes long-term holding and cools speculative hype, but at the same time deprives the budget of some revenue.
Even more striking is the stance of the Czech National Bank. In January, its governor, Aleš Michl, announced that the CNB is considering allocating up to 5% of its international reserves to Bitcoin — making it the first central bank in the West to openly declare such a move. The regulator emphasizes that this is a “pilot” portfolio, which will be built gradually and undergo rigorous stress testing for volatility. Even if the project remains limited to a few hundred million euros, the symbolic effect is huge: the state is effectively recognizing cryptocurrency as part of its reserve assets.
Digital Euro and Sovereignty Challenges
At the same time, Brussels is working on the digital euro. In April 2025, the ECB published the fourth report from the Rulebook Development Group; a political agreement on issuance is expected by early 2026. The digital euro is intended to act as “digital cash” and strengthen the EU’s payment sovereignty — especially after Europe’s dependence on American fintech platforms again became a subject of debate. For the Czech Republic, as a eurozone member state, this creates a delicate balance: its own crypto policy must not contradict the broader European strategy, and the implementation of CBDC requires an overhaul of commercial banks’ infrastructure, many of which have already integrated crypto services. Banks fear a deposit outflow into the digital euro and are asking regulators to cap retail wallet holdings — a question that remains unresolved.
MiCA: A Unified Set of Rules
The key to harmonization is the Markets in Crypto-Assets (MiCA) regulation, which came fully into effect on December 30, 2024. MiCA introduces a pan-European license for crypto service providers and clearly categorizes tokens into e-money, asset-referenced, and “other.” Once licensed in one country, a company can operate in all 27 EU member states — the so-called “passport” effect has already attracted Gemini, OKX, and Crypto.com to Malta, and Luxembourg is preparing to license Coinbase.
In the Czech Republic, the CNB will serve as the competent authority for MiCA; the corresponding law on digital financial market regulation is currently in its final reading. The regulator is preparing application procedures and white paper templates for tokens, which will allow local startups to enter the entire European market without relocating to the Netherlands or Estonia. At the same time, the CNB insists on strict KYC/AML compliance, citing the 6th Anti-Money Laundering Directive and the “Travel Rule” for crypto operators.
Licensing and Passporting: What Businesses Can Expect
For Czech fintech startups, the main hurdle lies in MiCA’s capital requirements. A custodial service provider must hold at least €150,000 in capital and insure against operational risks, while an issuer of e-money tokens must back them with full fiat reserves within the Eurosystem. On the other hand, the passport license removes expansion barriers: once vetted by the CNB, companies can offer crypto lending or staking services in Germany or France without needing separate approvals. Malta’s experience shows that the first months may spark a race toward “regulation-friendly” jurisdictions, which is why the CNB is already warning: speed does not mean lenient checks, and documentation will be vetted just as rigorously as for traditional fintech projects.
Innovation vs. Security: Where is the Czech Republic Headed?
The Czech crypto scene has reached a pivotal moment. Tax incentives encourage long-term investment, and the CNB’s willingness to test Bitcoin in its reserves gives the market institutional legitimacy. At the same time, MiCA sets a high regulatory bar: only those who can combine transparent compliance with technological agility will survive. On the horizon is the digital euro, which will reshape the payment landscape and intensify competition between private and state-backed digital currencies.
In this clash between decentralized innovation and the state’s role in protecting consumer interests, the Czech Republic is trying to chart its own path: to create conditions where a startup can grow into a European leader, and citizens can invest knowing their rights and data are protected. The state’s policy is no longer opposing cryptocurrencies but is instead aiming to integrate them into the financial ecosystem — preserving the core principle: innovation can only thrive where there is trust in the rules of the game.
