We must implement European regulation quickly.
In connection with the external consultation process, an introductory expert seminar on the Markets in Crypto-Assets Regulation (MiCA) was held on October 31, 2023, in cooperation with ČKMA and the Ministry of Finance. This seminar provided local crypto companies with an opportunity to comment on the proposed law. After processing the feedback, the new law could be submitted to the government by the end of this year, with the first comprehensive regulation of the crypto market potentially coming into effect in the first half of next year. However, a major unresolved question remains: which authority will be responsible for overseeing the newly regulated entities?
According to the draft version of the proposed law, the Czech National Bank (ČNB) is expected to take over the licensing process. However, members of the Czech Crypto Association have expressed concerns that the central bank may not be the most suitable authority for overseeing the crypto industry. They fear that if ČNB is in charge of oversight, slow licensing procedures could push applicants to seek licenses in other European countries. This would also involve changing their tax residency, leading to a potential reduction in tax revenues for the Czech Republic. (A study analyzing possible scenarios for the development of the crypto industry in the Czech Republic and its impact on the state budget can be downloaded HERE.)