Germany’s Federal Finance Ministry (BMF) issued a 24-page document on Tuesday, regarding the treatment of income tax related to blockchain tokens and cryptocurrencies. The document goes into in-depth technicalities on each of the top cryptocurrencies.
Moreover, the resolution comes with great news for anyone holding crypto for over a year. In addition, the same new rule applies to digital assets exploited in lending or staking protocols. The new rule comes as a result of a long and heated discussion. Formerly, the crypto used for staking or making any kind of profit was supposed to be held for up to ten years before an application for tax exemption could be possible.
Accelerated Crypto Development Calls for Resolutions
Germany’s first-ever cryptocurrency regulation bill covers a broad number of crypto-related topics:
- Buying and selling
- Token airdrops
- Hard forks
However, the 24-page guide is open to new suggestions and revision. “The rapid development of the crypto world ensures that we do not run out of topics,” explains Parliamentary State Secretary Katja Hessel. Furthermore, Hessel mentioned the current resolution is rather provisional and the German government is already working on a supplementary document that will tackle the issue of how federal states should be handling their obligations.
On the Flipside
- 6 months ago, the German government successfully implemented blockchain tech and cryptocurrencies in its coalition agreement
- The German government pointed out that blockchain and crypto is going to be fundamental for the economical and social growth of the Western European country