Czech Central Bank Prepares Fine For Calling Physical Bitcoins ‘Coins’

Published at: Nov. 4, 2019

Bitcoin (BTC) friendly Czech crypto-anarchist movement Paralelní Polis has received a warning from the country’s central bank for issuing its own coins.

Central bank fine “completely nonsensical”

As representatives reported on Twitter on Nov. 3, the Czech National Bank (CNB) has objected to Paralelní Polis using the term “coin” to describe commemorative silver tokens it is currently minting.

In 2018, a new law appeared giving sole rights to the word “coin” to the CNB. 

“Czech National Bank sent us an official threat that if we continue to use the word ‘Mince’ (‘Coin’) on our site, we will be fined. The bank claims to have a #Monopoly on the word,” the Twitter post reads.

Speaking to local media outlet Seznam Zprávy, Martin Leskovjan, the group’s chairman, described the situation as “completely nonsensical.”

“We’re calling the coin a coin,” he summarized. 

Government falls out of love with crypto

Since 2014, Paralelní Polis has become a well-known Bitcoin entity in the Czech capital, Prague, and includes facilities such as a cafe that accepts BTC payments. 

The silver coins are among the collective’s latest projects and include a nominal value of 0.01 BTC ($92) via a partnership with physical currency startup BitNotes.

Each coin has the image of one of three figures who are significant in both the Bitcoin space and beyond: Ross Ulbricht, Julian Assange and Aaron Swartz.

“With this project, we wanted to pay homage to people who rebelled against the system and whose work significantly contributed to internet freedom,” a blog post about the project explains. 

As Cointelegraph reported, the Czech Republic has opted for a more conservative approach to cryptocurrency freedoms. In August, authorities chose to implement tougher regulations than those required by the European Union. 

Under the new requirements, cryptocurrency businesses who do not register their activities could face a fine of up to around $20,000. 

Tags
Bitcoin Regulation
Law
Central Bank
Czech Republic
Related Posts
Presenting Crypto Finance Conference in St. Moritz
The annual Crypto Finance Conference (CfC), an international conference on digital asset and blockchain conceived for sophisticated investors and decision makers, will be held on Jan. 20–22, 2021. Among featured speakers there will be representatives of Winklevoss Capital, Swiss National Bank, the European Parliament, Ledger and others. Cointelegraph serves as the main media partner for the CfC St. Moritz 2021 and prepared a special page dedicated to the event. The program of the three-day event will include discussions on the macro-perspective and micro-perspective on the industry – on Jan. 20 and 21, and focus events about social impact and decentralization …
Adoption / Nov. 11, 2020
Week Two of RBI Vs. Crypto at the Supreme Court of India
The Supreme Court of India has this week listened to further hearings in the landmark case against the Reserve Bank of India’s ban on banks’ dealings with crypto-related businesses. On Jan. 22 and Jan. 23, proceedings continued with arguments presented by Ashim Sood, the legal counsel for the Internet & Mobile Association of India (IAMAI). In the wake of both public and industry-led petitions, the IAMAI brought a consolidated case against RBI’s imposition of a blanket ban on banks’ services to crypto businesses back in April 2018, which came into effect in July of that year. This week, Sood appeared …
Bitcoin Regulation / Jan. 24, 2020
Russia: Central Bank Suggests Limiting Sale of Crypto Assets for ‘Unqualified Investors’
The Central Bank of Russia wants to set an annual limit for so-called “unqualified investors” that want to purchase digital assets, local business media giant RBC reported on Tuesday, March 12. According to the documents obtained by RBC, the bank wants to amend the current draft crypto bill, dubbed “On Digital Financial Assets,” which recently passed a second of three readings in Russia’s parliament, the State Duma. The central bank’s paper recommends equating investor limits to the ones set in a draft bill on crowdfunding, which is also being reviewed by the Russian parliament. The head of the State Duma’s …
Bitcoin Regulation / March 12, 2019
Russian Finance Ministry submits crypto regulatory framework for review
In a new twist of the Russian crypto regulation saga, the country's Ministry of Finance has come forward with an initiative that stands in stark contrast with the Central Bank's hardline position. The Central Bank of Russia recently called for a ban on crypto trading and mining activities throughout the country. Citing volatility, environmental impact, and use in illegal activities, the central bank published a report calling regulators to implement a total ban and impose strict sanctions on violators. However, the proposal received opposition from the Russian Ministry of Finance. A few days after the central bank's call for a …
Regulation / Jan. 27, 2022
Clarity pushed back: Russian government fails to forge a consolidated stance on crypto regulation
On Feb. 18, the Russian Ministry of Finance kicked off public consultations on the rules of cryptocurrency issuance and transactions. While a welcome development, it is less than the country’s crypto space had expected to get. Earlier in the week, the government announced that by Feb. 18, a bill containing the finance ministry and central bank’s consolidated position on crypto regulation would be drafted. Updated estimates suggest that it will take at least another month for draft legislation to see the light. The main reason for the delay appears to be the central bank’s renewed resistance, which just several days …
Regulation / Feb. 19, 2022