Czech President Petr Pavel has officially signed a groundbreaking cryptocurrency bill into law, setting a regulatory precedent that aligns Czechia with the European Union’s Markets in Crypto-Assets (MiCA) framework. The legislation provides long-awaited legal clarity, simplifies taxation, and ensures cryptocurrency firms have access to banking services, a move seen as a major step toward fostering industry growth.

The Czech Cryptocurrency Association (CKMA), which played a key role in lobbying for the law, hailed it as a turning point for the nation’s digital asset sector. CKMA Chairman František Vinopal emphasized how just a few years ago, such proposals were “unthinkable,” but lawmakers have now come together to support the crypto industry.

A major highlight of the new law is granting licensed cryptocurrency companies the right to open and maintain bank accounts, addressing a longstanding challenge for the sector. The legislation also sets clear guidelines for taxing crypto transactions, offering much-needed stability for businesses and investors navigating the evolving regulatory landscape.

The bill’s passage comes as EU member states prepare for full MiCA implementation, which seeks to create a standardized regulatory framework across Europe. MiCA covers essential aspects such as investor protection, platform requirements, and measures to prevent market abuse, ensuring a more secure and transparent ecosystem.

Meanwhile, Czechia’s growing crypto adoption has sparked discussions at the highest levels of financial governance. Czech National Bank (CNB) Governor Aleš Michl has proposed allocating up to 5% of the central bank’s reserves to Bitcoin—potentially adding $7.3 billion in BTC holdings. While the CNB has yet to make an official decision, Michl’s endorsement highlights Bitcoin’s increasing recognition as a strategic asset in global finance.